DOW JONES NEWSWIRES
STOCKHOLM-- Swedish hygiene products and tissue producer Svenska
Cellulosa AB, or SCA (SCA-B.SK) Friday reported rising third
quarter profits compared with a year ago, and said its cost savings
programs are progressing according to plan.
MAIN FACTS:
-Third-quarter revenue was SEK22.05 billion, slightly lower than
the SEK22.20 billion posted in the year-ago period. Analysts in a
FactSet/Dow Jones survey had on average expected sales at SEK22.03
billion.
-Operating profit excluding items affecting comparability was
SEK2.52 billion, up from SEK2.29 billion a year ago and higher than
the SEK2.37 billion analysts had expected.
-Net profit was SEK1.45 billion, up from SEK370 million and
higher than expectations for SEK1.39 billion.
-"The efficiency programs in the hygiene and forest products
operations are progressing according to plan," CEO Jan Johansson
said.
-Cost savings in hygiene operations amounted to SEK270 million
during the quarter. In tissue operations, cost savings related to
the acquisition of Georgia-Pacific's European tissue operations
amounted to SEK120 million during the third quarter.
-The efficiency program in forest products led to an earnings
improvement of SEK160 million during the third quarter.
-In the personal care division, operating profit decreased by 5%
as earnings were weighed down by investments in increased marketing
activities.
-The operating margin in the tissue business improved to 11.5%
from 10.8% a year ago, as higher volumes and prices along with cost
savings boosted profit.
-Forest products' operating profit excluding items affecting
comparability rose 49% to SEK420 million. The higher profit was
mainly attributable to cost savings, higher prices and lower raw
material costs.
Write to Niclas Rolander at niclas.rolander@wsj.com; Twitter:
@WSJNordics
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