Interim Report Q1 2011

Interim Report Q1 2011

1 JANUARY-31 MARCH 2011 (compared with same period a year ago) 

  · Net sales decreased by 3% (increased by 6% excluding exchange rate
effects and divestments) to SEK 25,393m (26,199)
  · Profit before tax, excluding restructuring costs, rose 4% (10%
excluding exchange rate effects) to SEK 1,810m (1,748)       
  · Restructuring costs amounted to SEK 0m (244)
  · Net profit for the period, excluding restructuring costs, rose 6% to
SEK 1,339m (1,259)
  · Earnings per share rose 24% to SEK 1.89 (1.53)
  · Cash flow from current operations was SEK 353m (1,148)

(Table included in attached pdf)

CEO'S COMMENTS

Net sales for the first quarter of 2011, excluding effects of exchange
rate movements and divestments, rose 6% as a result of higher prices and
volumes compared with the same quarter a year ago.

Operating profit for the first quarter of 2011, excluding restructuring
costs and exchange rate effects, rose 10% compared with the same period
a year ago. Higher prices and volumes along with cost-cutting measures
compensated for SEK 1.3bn in higher raw material costs. Net profit for
the period, excluding restructuring costs, rose 6% (12% excluding
exchange rate effects), and earnings per share rose 24%.

Cash flow from current operations for the first quarter of 2011 was SEK
353m (1,148). The decrease is mainly attributable to a higher level of
working capital and increase in current capital expenditures.

During the first quarter of 2011, operating profit for Personal Care and
Tissue decreased compared with the same quarter a year ago. The decrease
is mainly attributable to higher raw material costs. The sharp
improvement in operating profit for Packaging is attributable to higher
prices and volumes along with cost savings, which compensated for
roughly SEK 500m in higher raw material costs. Operating profit for
Forest Products improved as a result of improved earnings for the
publication paper business.

Operating profit for the first quarter of 2011, excluding exchange rate
effects, decreased by 16% compared with the fourth quarter of 2010. The
lower profit is the result of a seasonal drop in volumes and higher raw
material and energy costs.

Price increases, new product launches and activities to lower costs are
being carried out to offset the significant increase in raw material
costs. The effects of this will have an impact during the second half of
the year. In Packaging, prices for corrugated board are expected to rise
during the second quarter.

In Tissue, decisions have been made to invest in increased capacity in
Russia and Germany in order to further strengthen our market position
and profitability. The investments in these two plants amount to
approximately SEK 2.3bn and production is scheduled to commence in 2013.

Favourable demand is expected in all of SCA's business areas in 2011.

For further information, please contact:
Camilla Weiner, Head of Corporate Communications, +46 8 788 52 34
Johan Karlsson, Vice President Investor Relations, +46 8 788 51 30
Pär Altan, Vice President Media Relations, +46 8 788 52 37 

Note
SCA discloses the information provided herein pursuant to the Securities
Markets Act. This report has been prepared in both Swedish and English
versions. In case of variations in the content between the two versions,
the Swedish version shall govern. This report has not been reviewed by
the company's auditors.