SCA Interim Report 1 January-31 March 2004

Interim Report 1 January-31 March 2004 2004:1 2003:1 2003:4 Earnings per share, SEK 4.34 6.02 6.07 Cash flow from current operations per 3.48 7.45 11.27 share, SEK Net sales, SEK M 21,687 21,890 21,153 Earnings after financial items, SEK M 1,472 1,974 1,786 Net earnings, SEK M 1,014 1,395 1,419 Compared with first quarter of 2003 · Net sales amounted to SEK 21,687 M (21,890). Adjusted for currency and price effects, net sales rose by 5%. · Earnings after taxes (net earnings) amounted to SEK 1,014 M (1,395)1. · Earnings per share amounted to SEK 4.34 (6.02). Compared with fourth quarter of 2003 · Earnings per share amounted to SEK 4.34 (SEK 6.07). · Unchanged operating margin for Hygiene Products and Packaging, while Forest Products declined. · Improvements for the Group's operations in North America, with price increases implemented prior to second quarter. Other · Acquisition of Malaysian hygiene company Drypers concluded during the quarter. · Acquisitions of hygiene companies in Australia/New Zealand and Mexico expected to be concluded during second quarter. NET SALES AND EARNINGS Earnings per share amounted to SEK 4.34 (6.02) and consolidated net earnings amounted to SEK 1,014 M (1,395). Excluding items affecting comparability of a negative SEK 21 M (positive: 154), earnings per share and net earnings declined by 17%. Consolidated net sales amounted to SEK 21,687 M (21,890). Adjusted for currency and price effects, net sales rose by 5%. The Group's operating profit amounted to SEK 1,627 M (2,200). Excluding items affecting comparability (expense of SEK 30 M in first quarter of 2004 pertaining to restructuring within hygiene products and SEK 197 M in the first quarter of 2003) operating profit declined by 17%. Currency movements had a negative impact of 10% on operating profit. Operating profit for Hygiene Products was SEK 1,153 M (1,275), 10% lower, of which 6% due to currency movements. Operating profit for Packaging amounted to SEK 533 M (691), a decline of 23%, of which 4% due to currency movements. Operating profit for Forest Products fell by 15% to SEK 345 M (407), of which 32% due to currency movements. Operating margin for the Group was 8% (10). The operating margin for Hygiene Products was 11% (12), 7% (9) for Packaging and 9% (11) for Forest Products. Financial items improved by SEK 71 M to an expense of SEK 155 M (expense 226), primarily as a result of lower average net debt and by dividends reported earlier than in the preceding year. The Group's earnings after financial items amounted to SEK 1,472 M (1,974), excluding items affecting comparability, SEK 1,502 M (1,777). Currency movements affected operating profit adversely by 11%. Return on shareholders' equity was 10% (12), and return on capital employed was 10% (13). Comparison with fourth quarter of 2003 Earnings per share during the first quarter amounted to SEK 4.34 (6.07). Excluding items affecting comparability of a negative SEK 21 M (positive: 202), earnings per share declined by 15%. Consolidated net sales amounted to SEK 21,687 M (21,153) and, accordingly, were 3% higher than in fourth quarter of 2003. Currency movements had a positive effect on net sales of 1%. Operating profit for the Group amounted to SEK 1,627 M (1,964). Excluding items affecting comparability (expense of SEK 30 M in first quarter of 2004 pertaining to restructuring within Hygiene Products and SEK 155 M in the fourth quarter of 2003), operating profit declined by 8%. Currency movements had only a marginal impact. Operating profit declined by 3% for Hygiene Products and by 1% for Packaging. Operating profit for Forest Products fell 26% due mainly to lower result in publication papers. Operating margin for the Group declined to 8% (9). The operating margin was 11% (11) for Hygiene Products, 7% (7) for Packaging and 9% (13) for Forest Products. Financial items improved to an expense of SEK 155 M (expense: 178) due mainly to dividends. Group earnings after financial items amounted to SEK 1,472 M (1,786), excluding items affecting comparability, SEK 1,502 M (1,631). Currency movements had only a marginal effect on earnings after financial items. Press conference SCA's interim report for the period 1 January-31 March 2004 will be published on 27 April 2004. A press conference will be held at 10:00 CET in Stockholm, where Jan Åström, President and CEO, will present the results. Venue: Salén Konferenser, Aulan, Norrlandsgatan 15, Stockholm Telephone conference The telephone conference will be held on 27 April 2004, at 15:00 CET, where Jan Åström will comment on the results. To participate, please call the number below at least 5 minutes prior to the conference call. Dial-in number UK:+44 (0)207 162 0184 quote: SCA Dial-in number US:+1 334 420 4950 quote: SCA The interim report and the slide presentation will be available at www.sca.com/Investors. Webcasting The telephone conference will be webcasted live (listen-only). On 27 April around 8 p.m. a recorded version will be available on our web site www.sca.com/Investors. Requirements: Windows Media Player or Real Player. For further information please contact: Jan Åström, President and CEO. Telephone: +46 70 586 0701. Peter Nyquist, Senior Vice President, Communications and Investor Relations, Telephone: +46 70 575 2906. _______________________________ 1 Earnings in the first quarter of 2004 were affected by costs for personnel reductions. During 2003, earnings in the first quarter were affected by sale of shares and, during the fourth quarter, by positive income effect of the release of badwill, costs for personnel reductions and write-downs of fixed assets (see also page 10). ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2004/04/27/20040427BIT00050/wkr0001.doc The full report http://www.waymaker.net/bitonline/2004/04/27/20040427BIT00050/wkr0002.pdf The full report