Net sales decreased by 1% (increased by 4% excluding exchange rate effects and divestments) to SEK 105,750m (106,965). SCA's performance was one percent higher than expected by the analysts in SME Direkt survey and A-shares shares rose 2.23 percent and raised the dividend.
Operating profit excluding items affecting comparability decreased by 4% (unchanged excluding exchange rate effects) to SEK 9,224m (9,608) Items affecting comparability, write-downs of goodwill, restructuring costs, etc., amounted to SEK 5,676m (931) Earnings per share, including items affecting comparability, were SEK 0.78 (7.90) Cash flow from current operations was SEK 6,383m (7,399) The Board of Directors proposes an increase in the dividend by 5%, to SEK 4.20 (4.00) per share
An agreement was reached after year-end to divest SCA’s packaging operations, excluding the kraftliner operations. Net sales and operating profit for these operations, excluding items affecting comparability, amounted to SEK 24,413m (24,234) and SEK 1,486m (1,113), respectively, corresponding to earnings per share of SEK 0.73
In November 2011 and January 2012 SCA announced two major transactions. In November a binding offer was made for Georgia-Pacific’s European tissue operations, and in January 2012 the divestment of SCA’s packaging operations, excluding the two kraftliner mills in Sweden, was announced. Together these two transactions will entail major synergies, lower sensitivity to economic swings and gradually higher earnings per share.
B.C. Lumber Exports To China Exceed $1Billion In 2011; Up 200 % From 2009 according to an article in Huffington Post.
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Stora Enso will record non-recurring items (NRI) with a negative impact of approximately EUR 21 million on operating profit and a negative impact of approximately EUR 10 million on financial items in its fourth quarter 2011 results. The NRI will have a negative cash impact of EUR 20 million.
SCA’s packaging operations – excluding the two kraftliner mills in Sweden – are divested to DS Smith. The purchase price amounts to EUR 1.7bn on a debt free basis according to a pressrelease from the company. SCA's shares rose sharply after the announcement of the deal. “The company will now be streamlined towards sanitation and hygiene products. The reason for the divestment is primarily to enable increased growth in the hygiene business”, says Jan Johansson, President and CEO of SCA. He also said that the deal means increased opportunities for strategic acquisitions in the hygiene area.
Norske Skog has signed a long-term energy contract with NTE (Nord-Trøndelag Elektrisitetsverk) for the supply of electricity for the paper mill at Skogn.
The new agreement, together with an agreement that was signed with Statkraft last year, secures Norske Skog Skogn sufficient energy for full operation of the mill. The agreement has been entered into on commercial terms and has a duration of 7 years from 1 January 2012. The new agreement with NTE ensures supply of 0.4 TWh per year until 31.12.2018.
Forest machinery manufacturer Komatsu Forest, with headquarters and manufacturing facilities in Sweden, has signed an agreement with Eldorado Brazil - a pulp mill in Brazil. The whole deal is worth about 1.4 billion SEK reports P4.The agreement covers delivery of a total of 120 machines, including a larger number of Komatsu excavators manufactured in Brazil are equipped with harvesting heads.
Since Stora Enso announced an increase in NBSK prices to 850 dollars per tonne by the end of December, at least four other producers followed but not the Swedish pulp giant Södra.
In addition, there is an increase in the price of the dollar against the euro, to levels close to their highest in 18 months. The raw materials are priced in dollars and when the currency increases, the cost for European buyers increase.
Holiday season storms in Sweden and Finland could lead to lower prices for pulpwood in 2012. "If the effect of the storms are so significant that we think may be wood prices to fall by around 15 percent."
This will benefit companies such as Stora Enso and UPM-Kymmene, writes Deutsche Bank in a quick comment.
Norske Skog has reached an agreement with its bank syndicate resetting covenants related to the EUR 140 mill. revolving credit facility (RCF) established in May this year according to a pressrelease from the Norweigian company. The new terms give additional headroom in 2012. Norske Skog has ended discussions with a counterparty to establish a securitization of accounts receivables in Europe without reaching an agreement.
Stora Enso has signed an agreement with the European Investment Bank (EIB) for a EUR 150 million loan to be used for the new container board machine investment project at Ostrołęka Mill in Poland. The loan matures in 2023. “Our co-operation with EIB is good and we are delighted with EIB’s continuing support for our strategically important investments" says Mats Nordlander, Executive Vice President.
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