SCA’s Personal Care and Tissue divisions posted remarkable growth in the first half of 2012. Results in the Forest products division, in contrast, were markedly down year-on-year.
SCA’s hygiene operations have positively impacted the company’s financial results for the first six months of the year. The Personal Care and Tissue divisions’ operating results were up by 24% and 50%, respectively, compared to the same period of 2011.
Without considering items affecting comparability, related to factors such as restructuring and transaction costs, SCA thus improved net earnings by 7% in the first half of 2012. With sales amounting to SEK39.8bn, the company booked an operating profit of SEK3.9bn and a net profit of SEK2.9bn. Including non-recurring items of SEK410m, however, operating and net results were down by 1.3% and 6.4% year-on-year with SEK3.5bn and SEK2.5bn, respectively.
SCA said that earnings were positively impacted by an increase of sold volumes. Lower raw material costs and cost savings in the hygiene business also contributed to the development, the company added. On the other hand, lower prices in the Forest products sector are said to have burdened results. The division’s earnings have considerably decreased compared to the first half of 2011. The operating profit amounted to SEK764m, down by 41% year-on-year.
SCA emphasised that emerging markets, and especially hygiene products in these markets, were developing well. The company closed some important deals in this regard during the first half of the year. In Asia, SCA acquired Taiwan-based hygiene paper company Everbeauty and increased its share in Chinese tissue manufacturer Vinda resulting in a stake of 21.6 %. Furthermore, the company took full control of Chilean hygiene products company PISA in acquiring the outstanding 50 % interest it did not already own. The acquisition of Georgia Pacific’s European tissue business and the divesture of its packaging operations to DS Smith, excluding the two Swedish kraftliner mills, are part of the company’s strategy to focus on its hygiene paper business in the future.
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