(compared with
· Net sales increased 4% to
· At year-end SCA changed the accounting method used for the valuation of the company's forest assets so that it is based on market value determined from transactions in areas where SCA owns forest land. The forest assets were valued at approximately
· EBITDA increased to
· EBITDA, excluding the impact of the changed accounting method for the valuation of forest assets, rose 1% to
· EBITDA margin, excluding the impact of the changed accounting method for the valuation of forest assets, decreased to 27.2% (28.0)
· Operating cash flow increased 6% to
· Operating profit increased to
· Net profit increased to
· Earnings per share, excluding the impact of the changed accounting method for the valuation of forest assets, declined to
· The Board of Directors proposes a dividend of
(compared with
· Net sales declined 13% to
· EBITDA, excluding the impact of the changed accounting method for the valuation of forest assets, decreased to
COMMENTS ON THE FINANCIAL STATEMENTS
SCA continued to deliver profitable growth in 2019. The forest assets increased in both volume and area. At the same time, the integrated value chain has been further strengthened. The Östrand pulp mill was ramped up to full production and SCA decided to invest some
Demand and market prices declined successively for all product areas during the year. But despite a weaker market, both operating profit before depreciation and operating cash flow were higher than 2018 due to higher delivery volumes from the expanded pulp mill.
SCA performed a new forest survey in 2019. According to the new survey, SCA's standing volume in
At year-end, SCA changed its accounting method for the valuation of the company's forest assets to base this on market value determined from transactions in areas where SCA owns forest assets. Based on transaction prices, SCA's forest assets were valued at approximately
Earnings in the fourth quarter of 2019 were lower compared with the preceding quarter and the corresponding quarter in 2018. Maintenance costs and lower market prices had an adverse impact on earnings.
SCA's wood consumption declined slightly during the quarter on account of maintenance stops at SCA's pulp and paper mills. Prices for pulpwood and timber remained stable for the quarter.
Consumption of sawn timber remained stable, although a high level of supply led to a fall in selling prices compared with the preceding quarter.
Within Pulp, global delivery levels were good and inventory levels fell. However, average selling prices continued to decrease slightly during the quarter.
Market prices for kraftliner declined during the quarter. However, demand has improved and inventory levels fell for both kraftliner and testliner. For publication paper, demand and market prices declined slightly.
INVITATION TO PRESS CONFERENCE ON INTERIM REPORT FOR THE FOURTH QUARTER OF 2019
Members of the media and analysts are hereby invited to attend a press conference where this interim report will be presented by the President and CEO,
Time:
Venue: Sankta Clara, Kapital 8 Klara Strand, Klarabergsviadukten 90 in
The press conference will be webcast live at www.sca.com. It is also possible to participate by telephone by calling:
US: +1 631 510 7495
Specify "SCA" or the conference ID: 1881188.
Sundsvall,
President and CEO
For further information, please contact
Please note:
This is information that SCA is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. This report has been prepared in both Swedish and English versions. In case of variations in the content between the two versions, the Swedish version shall govern. The information was submitted for publication, through the agency of the contact person set out below, on
The core of SCA's business is the forest,
2019 the forest products company SCA had approximately 4,000 employees and sales amounted to approximately
https://news.cision.com/sca/r/year-end-report-2019,c3021996
https://mb.cision.com/Main/600/3021996/1183747.pdf
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