SCA Batte than expected – Raises Dividend – Swedish newspaper Svenska Dagbladet

SCA Batte than expected – Raises Dividend – Swedish newspaper Svenska Dagbladet

Net Sales fourth quarter was higher than analysts had expected, 27.397 billion crowns. Expected for the fourth quarter of 2014 were as Inquiry Financial net sales of 26.82 billion kronor. Corresponding quarter of the previous year was reported 23.42 billion kronor.

Exchange opened thus positive for SCA, whose B shares had risen 8 percent ten minutes after nine.

Adjusted operating income, 3.25 billion kronor, is also higher than expected, 3.049 billion crowns. Including one-time items totaling nearly 900 million, including from restructuring and impairment charges, operating income was weaker than expected. Profit before tax including non-recurring items was 2 154 million. Analysts’ expectations were according Inquiry Financial average to 2.635 billion crowns. Fourth quarter of 2013 were reported 2.676 billion crowns in profit before tax.

“Consolidated net sales for the fourth quarter of 2014 increased 17 percent compared with the same period last year. Organic sales growth was 4 percent, with growth in all business areas. Growth was primarily related to hygiene activities emerging markets and Forest Products” writes SCA in its financial statement.

The expectations of SCA’s fourth quarter, just as in the previous quarter, was that the rising dollar and higher pulp prices continue to weigh down. But quite Sweden-based forest products has also been deemed been the winner by the weaker krona.

In the financial statements, type SCA that the global market for hygiene products was affected by increased competition and low growth in mature markets, but that growth was strong in emerging markets.

“Operating profit, excluding items affecting comparability and gains in forest swaps, increased by 20 percent (3 percent, including gains on forest changes over the same period last year) and is the highest quarterly profit ever. The increase was mainly attributable to improved price / mix , higher volumes, cost savings and the acquisition of a majority stake in Chinese Vinda. Higher raw material costs due to higher prices and a stronger dollar negatively impacted earnings. The operating margin, excluding items affecting comparability, was 11.9 percent. Operating cash flow increased by 31 percent. The Board proposes a dividend increase of 10.5 percent to SEK 5.25 per share. “

Yesterday, at the close, touched SCA’s B share year high when it traded for more than 183: $ 50 , or 9 percent higher than at year-end. The share was back on the same level as twelve months ago. Over a three year period, the stock has climbed from 116 SEK to the current level.