Continued good growth for SCA in key Americas market


Continued good growth for SCA in key Americas market

SCA sees a continued positive sales trend for its hygiene products in North,
Central and South America (Americas) over the next few years. SCA already has
leading brands established on these markets. Organic growth is expected to be 5
- 7 % in the next few years. Furthermore, SCA sees opportunities for selective
acquisitions.

At a capital market day in New York today, SCA Americas' management presented
their strategy for continued growth and profitability improvements in the
region. SCA's CFO and acting CEO, Lennart Persson, confirmed at the same time
the Group's potential for improvement as presented earlier. This means that SCA
can improve its earnings by an additional 1-2 percentage points over the next
two years from today's operating surplus margin of 15%. The outlook presented at
the end of the second quarter is thus unchanged. 

SCA Americas today has dedicated hygiene operations with strong market positions
within both tissue and personal care products and the goal is to achieve organic
growth of 5 - 7 % over the next few years. 

“We have strong brands in our product portfolio,” says Thomas Wulkan, President
of SCA Americas. “In Colombia, for example, our brands for tissue (Familia) and
feminine care (Nosotras) outperform some of the best-known brands in the world
in terms of awareness and recognition. We have built up our positions locally,
often through strong joint ventures. We have the platform - now we want to
continue to grow and establish SCA in new markets in the region,” says Thomas
Wulkan.

SCA is open for selective acquisitions, but underlines that organic growth is at
least equally important, together with raising the value-added content of
products and services. 

In the US, SCA has established itself as a leading player within AFH tissue. The
strongest segments are the restaurant sector and commercial workplaces. Within
both these segments SCA is working to increase the value of its products and
services. 

“Our target is to double the proportion of sales of high-value products from 15%
to 30% within the next four years. Our launch of the Tork brand is a decisive
part of this work,” says Thomas Wulkan. 

Within incontinence care, SCA is today the leading supplier to nursing homes and
institutions in North America. Total sales of incontinence care products had
annual growth of approximately 9% in 2004-2006. 

“Our assessment is that we will continue to have a strong sales trend in the
years ahead. However, improving margins within the nursing home and institutions
segment is just as important as good growth,” Lennart Persson concludes.

Lennart Persson also commented on SCA's development after the second quarter.

“SCA presented a strong second quarter, which showed that all operations had
improved their earnings. Market trends continue to be in our favour during the
autumn, while we are now entering a period with higher raw material costs. In
view of the impact of the European holiday periods on the third quarter, our
third-quarter outlook given in the half-year report was stable development, i.e.
on a par with the second quarter. This remains unchanged”, says Lennart Persson.

The capital market day was attended by some 60 American and European analysts
and investors. 


Stockholm, 17 September 2007


For further information please contact:
Bodil Eriksson, SVP, Corporate Communications, +46 8 788 52 34
Pär Altan, VP, Media Relations, +46 8 788 52 37
Johan Karlsson, VP, Investor Relations, +46 8 788 51 30




NB
This information is such that SCA must disclose in accordance with the
Securities and Clearing Operations Act. The information was submitted for
publication on 17 September 2007 at 24.00 CET.




Svenska Cellulosa Aktiebolaget SCA is a global consumer goods and paper company
that develops, produces and markets personal care products, tissue, packaging
solutions, publication papers and solid-wood products. Sales are conducted in
some 90 countries. SCA has annual sales in excess of SEK 101 billion (c. EUR 11
billion) and production facilities in more than 40 countries. SCA had
approximately 51,000 employees at the beginning of 2007. SCA shares are traded
on the Stockholm, London and New York stock exchanges. For more information,
visit www.sca.com

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