Home / Knowledge / News / Textiles / SCA's hygiene operations show favourable growth
SCA's hygiene operations show favourable growth
30
Jan '09
Svenska Cellulosa Aktiebolaget SCA released the results from January 1 to Devember 21, 2008. (compared with corresponding period a year ago)

• Net sales rose 4% to SEK 110,449m (105,913)
• Profit before tax was SEK 6,237m (8,237)
• Profit for the period was SEK 5,598m (7,161)
• Earnings per share were SEK 7.94 (10.16)
• Operating cash flow was SEK 3,810m (4,508)
• The Board of Directors proposes a dividend of SEK 3.50 per share (4.40)

CEO'S COMMENTS
Net sales rose 4% compared with the same period a year ago. Operating profit for the fourth quarter amounted to SEK 1,838m (preceding year 2,591 excluding items affecting comparability), and was SEK 8,554m for the full year (preceding year 9,847 excluding items affecting comparability). Profit before tax was SEK 1,150m (excluding items affecting comparability 2,042) for the fourth quarter and SEK 6,237m (excluding items affecting comparability 7,937) for the full year.

SCA's hygiene operations are showing favourable growth compared with a year ago and are showing considerable resilience to the economic downturn. However, in the packaging operations in particular, earnings have fallen, and the negative trend became accentuated at the end of the fourth quarter. Our Forest Products business posted a poorer result than a year ago, mainly due to weak development for solid-wood products, although earnings for the unit improved somewhat during the fourth quarter compared with the third quarter.

In the hygiene operations, Tissue showed a strong improvement in sales and operating profit compared with a year ago, driven by acquisitions and price increases. SCA's positions in consumer tissue have developed well. The Away-From-Home segment (AFH) remains stable. Development for Personal Care is favourable, with growth of 6%. Our most important segment, incontinence care with the world-leading Tena-brand, grew 7% during the year and 11% during the fourth quarter. Margins came under pressure during the year due to the technological shift in baby diaper production and higher raw material costs.

In our packaging operations, we increasingly saw the effects of the recession during the latter part of the fourth quarter. The industry is struggling with a deteriorating demand scenario and high producer inventories. As a result, pressure is rising on prices for containerboard (liner) as well as corrugated board. Earnings deteriorated significantly compared with the preceding year and quarter. To address these problems, SCA streamlined its production and cut production of liner during the year by a total of 149,000 tonnes, including 92,000 tonnes during the fourth quarter.

Our overriding priorities in 2009 will be to improve cash flow in part by cutting back on capital expenditures and in part by cutting costs and reducing working capital.

For 2009 we expect our hygiene operations to show continued favourable development. If the negative demand balance continues in our packaging operations, we see the risk of an earnings decline. The forest products business is expected to show stable performance in 2009.

Against the backdrop of the above and of the major uncertainty about the economy and within the financial systems, combined with lower earnings, the Board proposes a dividend of SEK 3.50 per share for 2008.

Svenska Cellulosa Aktiebolaget SCA


Must ReadView All

Courtesy: Stone Island

Apparel/Garments | On 25th Jun 2018

Stone Island has mastered ingredient branding: Braind

Italian high-end men's apparel brand Stone Island tops the list of...

Courtesy: Tecnorama

Textiles | On 25th Jun 2018

'Tecnorama automatic dyeing system offers efficiency'

Italy based Tecnorama’s fully-automatic machinery for dispensing...

Courtesy: Pantone

Textiles | On 25th Jun 2018

Pantone unveils polyester standards

Pantone, provider of professional colour standards for the design...

Interviews View All

Top executives
Indian retail players

Walmart's acquisition of Flipkart endorses the humongous opportunities in...

Vasanth Kumar
Max Fashion India

‘Traditional high-street retailers are now willing to offer franchisees to ...

Yash Agarwal
Hitansh Online

Every market region has its own culture and trends

John Kelley

Textile Events is one of the largest textile fair in the United Kingdom,...

Tom Adeyoola

Describing itself as the best body shape and garment fit company in the...

Paolo Crespi

For.Tex is an Italy-based leading producer of dyes and thickeners, and is...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Cigdem Akin
Cigdem Akin

She has carved a niche for herself as the national brand of Turkey. Her...

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Priya Somaiya
Usha Social Services

The Usha Silai label from Usha International is all set for a retail...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


June 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Advanced Search