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March 7, 2016

SCA: Forest Products segment reports drop in operating profit

SCA: Forest Products segment reports drop in operating profit

The Swedish SCA's Forest Products division achieved a 2% increase in net sales up to SEK 4,133 million (2014: 4,037). Sales growth excluding exchange rate effects was 1%, of which price/mix accounted for -2% and volume for 3%. Exchange rate effects increased sales by 1%.

Despite the rise in sales, SCA Forest Products divison's operating profit, excluding items affecting comparability, decreased by 10% to SEK 612 million (2014: 683).

In the quarter, kraftliner showed higher prices (including exchange rate effects) and lower volumes. Publication papers and solid-wood products showed lower prices (including exchange rate effects) and higher volumes. Pulp showed lower prices (including exchange rate effects) and lower volumes, SCA explains.

The lower operating profit for SCA's Forest Products is mainly attributable to lower prices (including exchange rate effects), higher costs associated with production stops and impairment loss of trade receivables of approximately SEK 40m attributable to restrictions in the Egyptian financial market.

According to SCA, earnings were favorably affected by higher volumes, lower raw material and energy costs, and lower depreciation.

 

 

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