SCA Interim Report Q3 2017

JANUARY 1 – SEPTEMBER 30, 2017 (compared with the year-earlier period, continuing operations)
•Net sales increased 9% to SEK 12,422m (11,434)
•Adjusted EBITDA improved 10% to SEK 2,683m (2,443)
•The adjusted EBITDA margin was 21.6% (21.4)
•Adjusted operating profit was SEK 1,838m (1,616)
•Operating profit totaled SEK 1,725m (1,739)
•Net profit for the period totaled SEK 1,278m (1,358)
•Earnings per share amounted to SEK 1.82 (1.93)
•Operating cash flow was SEK 1,431m (1,347)

A STRONG THIRD QUARTER
The third quarter of 2017 was also SCA’s first full quarter, since the split, as an independently listed company. The market trend was favorable in all of SCA’s segments and earnings improved compared with the preceding quarter as well as the same quarter last year.

Second-quarter earnings were impacted by non-recurring effects such as planned maintenance stops, while underlying earnings were stable and rising. This trend has continued into the third quarter.

Market conditions are good in all of SCA’s segments, with favorable demand and continued price increases. Production remained stable.

Demand for wood products is high, with stable demand and balanced markets in Europe, China and the US. Due to these strong market conditions, prices were increased during the year and price increases continued in the third quarter.

Demand for kraftliner has shown a strong growth trend for several years. The key drivers of this trend are e-commerce and demand for high-quality packaging, which has thereby strengthened demand for virgin fiber-based packaging material (kraftliner). In 2017, three price increases were announced for unbleached kraftliner, totaling EUR 150 per tonne, and these are being successively implemented. The price level of white kraftliner has also increased. Demand for publication paper, continued to show a negative trend.

The timber market remained stable in SCA’s operating area, in terms of both price and supply.

The pulp market has continued to be strong. Deliveries to China increased again after the summer and demand was also favorable in other markets. Several ongoing capacity extensions were delayed and production problems in other mills also restricted supply. In September, the price of softwood kraft pulp was raised in USD and further increases have been announced as of October.

The long-term demand for softwood pulp has increased by 1.5-2% per year, which is the background to SCA’s investment in the Östrand pulp mill. The project will double SCA’s capacity and make Östrand one of the most cost-efficient production facilities in the world for softwood kraft pulp. SCA provides more detailed information about the investment amount and cost position of this project on page 6 of this report. The project is on track in terms of both time and budget.
more detail at:  https://www.sca.com/en/about-sca/currently-in-sca/press-releases/2017/interim-report-q3-2017/

Related Posts

Kimberly-Clark Announces Third Quarter 2017 Results

Executive Summary: ◦Third quarter 2017 net sales of $4.6 billion increased 1 percent compared to the year-ago period. Changes in foreign currency exchange rates benefited sales by nearly 1 percent and organic sales rose slightly. Organic sales were similar in North American consumer products. Outside North America, organic sales increased 3 percent in developing and emerging markets and fell 3 percent in developed markets. ◦Diluted net income per share for the third quarter was $1.60 in 2017 and $1.52 in 2016. Results benefited from volume growth, cost savings and reduced marketing, research and general spending, while performance was impacted by lower net selling prices and input cost inflation. ◦The company continues to expect that full-year 2017 net sales and organic sales will be similar, or up slightly, year-on-year. The company also continues to anticipate that full-year 2017 earnings per share will be at the low end of its target range of $6.20 to $6.35. Click Read More below for additional information.

Clearwater Paper Reports Fourth Quarter and Year End 2020 Results

For the fourth quarter of 2020, Clearwater Paper reported net sales of $453 million, a 4.0% increase compared to net sales of $435 million reported in the fourth quarter of 2019. Net income for the fourth quarter of 2020 was $23 million, compared to net income in the fourth quarter of 2019 of $2 million. On a non-GAAP basis, Clearwater Paper reported adjusted net income in the fourth quarter of 2020 of $25 million, compared to fourth quarter 2019 adjusted net income of $6 million. For the full year 2020, Clearwater Paper reported net sales of $1.9 billion, a 6.1% increase compared to net sales of $1.8 billion for 2019. Net income for the full year was $77 million in 2020, compared to a net loss for 2019 of $6 million. On a non-GAAP basis, Clearwater Paper reported adjusted net income for 2020 of $89 million, compared to 2019 adjusted net income of $4 million.

ANDRITZ successfully starts up main equipment for alternative fiber processing system to be used in tissue production at Essity, Germany

International technology group ANDRITZ has successfully started up the main equipment forming part of an innovative mechanical pulping line supplied to hygiene and health company Essity in Mannheim, Germany. The new system features a capacity of 100 bdmt/d and processes 100% wheat straw to produce bleached straw pulp for the mill’s own tissue production. As raw material for pulp production, the facility mainly uses FSC- and/or PEFC-certified thinning and waste wood from the area surrounding the mill. Essity has now also been using plant-based agricultural residue from local farms for the production of high-quality tissue since the new equipment was started up. The innovative process uses less water and energy and can thus be considered a breakthrough in sustainable tissue manufacturing. The plant in Mannheim is the first of its kind in Europe and the first in the world to operate on a large scale.
Back To Top
×Close search
Search