Home / Knowledge / News / Textiles / SCA to focus on cash flow and strengthen position

SCA to focus on cash flow and strengthen position

11
Dec '08
In response to the recession and global financial turmoil, SCA is adapting its near-term plans to the prevailing situation. Most important is to reverse the Group's cash flow trend and to continue strengthening SCA's successful positions in hygiene markets around the world.

This applies not least for SCA's home market in Europe, which accounts for 80% of consolidated sales and 85% of operating profit.

At a Capital Market Day held today in Stockholm, SCA's CEO, Jan Johansson, presented his and the management's views of the company's development in 2009 and 2010. SCA's plans for the years ahead are focused in three areas: 1)Reduced costs and higher cash flow, 2)Capital efficiency, and 3)Innovation.

"Our action plan for the years immediately ahead addresses lower growth and tougher times," said Johansson. "Parts of our business are sensitive to economic swings and will continue to be adversely affected. In these businesses we are concentrating our efforts to improve cash flow and increase the efficiency of our plants.

"At the same time, through continued innovation and investments in product development we have favourable prospects to strengthen our key positions in the hygiene market, which is more resilient to economic swings. The European market is the most important for us, and we will prioritize harder among our emerging markets”.

The prevailing financial and economic climate may also give rise to new opportunities for structural deals, noted SCA, which sees a continued need of consolidation in the packaging sector.

In view of its ambition to strengthen the Group's cash flow, in the years immediately ahead, SCA will wait and see with further expansion in markets in which it does not already have an established position. However, incontinence care products will have continued global priority.

During the Capital Market Day, SCA presented its target for return on capital employed as the overall goal for the Group and its constituent parts.

"Our goal is for the Group to deliver a 13% return on capital employed. We will achieve this within a 3-4 year period, provided that the economy recovers toward the end of 2010," said Johansson.

Despite the negative impact of the recession, SCA's management is working to improve cash flow by a couple billion SEK during the next two years.

SCA


Must ReadView All

Pic: Shutterstock

Textiles | On 22nd Sep 2020

EFTA market study aims to increase trade with Philippines

To strengthen The Philippines' trade with the European Free Trade...

Pic: UKFT

Textiles | On 22nd Sep 2020

UKFT demands reversal to end VAT-free shopping

UKFT is urging the government to reverse its decision to end VAT-free ...

Pic: Centric Brands

Retail | On 22nd Sep 2020

Centric Brands confirms reorganisation plan

US-based Centric Brands Inc. recently announced that the US...

Interviews View All

Rahul Bhadani, Looksgud

Rahul Bhadani
Looksgud

Navigating through catalogues is a bit hasslesome

Janak Dhamanwala & Sunil Dhamanwala, Jansun

Janak Dhamanwala & Sunil Dhamanwala
Jansun

Moving towards sustainability is also a social change

Top executives, Textile industry

Top executives
Textile industry

Union budget 2018-19 will have positive impact on apparel industry

Karan Behal,

Karan Behal

Karan Behal, founder and chief executive of top-selling brand...

Franco Ravazzi,

Franco Ravazzi

Italy-based Tessimenti E Orditi Tinti (T.O.T SRL) specialises in stocking...

Laxmikant Rathi,

Laxmikant Rathi

With more than 60 years of experience in the textile industry, Ideal...

Karl Zelik, Vanderbilt University

Karl Zelik
Vanderbilt University

A team of engineers at the Vanderbilt University has designed a smart...

Dr. Rene Wollert, Freudenberg Nonwovens

Dr. Rene Wollert
Freudenberg Nonwovens

Dr. Rene Wollert discusses the current scenario of the global nonwovens...

Marten Alkhagen, Swerea IVF AB

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Prathyusha Garimella, Prathyusha Garimella

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Akta Adani, India Boulevard

Akta Adani
India Boulevard

India Boulevard is a San Francisco-based curated fashion marketplace that...

Igor Chapurin, Chapurin

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

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


September 2020

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


Advanced Search