SCA Net Profit Rises Amid Higher Prices and Cost Savings

Date : 18/10/2013 @ 09:02
Source : Dow Jones News

SCA Net Profit Rises Amid Higher Prices and Cost Savings

   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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