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Net sales for Tissue operations improves by 14% at SCA
25 Jul '09
4 min read
In our Forest Products business, net sales rose 2% during the second quarter compared with the same period a year ago, and operating profit improved by 16%. Despite a challenging market for publication papers, the favourable earnings trend from the first quarter continued, and operating profit rose 10% during the second quarter. The improvement is mainly attributable to lower energy and raw material costs. In the solid-wood products segment we are now seeing rising prices as a result of an improved market balance.
We will encounter continued difficult market conditions for the packaging operations during the second half of the year and therefore see a risk for an earnings decline for this business. Our Forest Products business is feeling the effects of price pressure for publication papers, while there is potential for price increases for solid-wood products. The economy is also affecting our hygiene business, mainly through a greater focus on price. However, we believe that the effects of this, if any, will be limited.
We will encounter continued difficult market conditions for the packaging operations during the second half of the year and therefore see a risk for an earnings decline for this business. Our Forest Products business is feeling the effects of price pressure for publication papers, while there is potential for price increases for solid-wood products. The economy is also affecting our hygiene business, mainly through a greater focus on price. However, we believe that the effects of this, if any, will be limited.
SVENSKA CELLULOSA AKTIEBOLAGET SCA
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