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SCA Reports Sales Results

February 28, 2011

SCA's reported that net sales for 2010 were $16.8 billion.Profit before tax, excluding restructuring costs was $1.3 billion.

Net sales in the fourth quarter 2010 increased 8% to $4.3 billion. Higher prices and volumes increased sales by 5% and 3%, respectively.

In the Personal Care segment, net sales increased 6% in the fourth quarter to $984 million. Higher volumes increased sales by 4% while acquisitions contributed 2%.

Sales of Tena brand incontinence care products rose 4%; sales of baby diapers rose 8%; sales of feminine care products rose 5%.

Jan Johansson, president and CEO said, "During the year, SCA increased its volumes in all business areas and grew its marketshare for global brands Tena, for incontinence care, and Tork, in the away-from-home (AFH) tissue market. Together with higher prices for both Tissue and Packaging and cost-cutting measures, this compensated for negative exchange rate effects and SEK 5.2 billion in higher raw material costs. The packaging operations showed a sharp improvement in profitability. Net profit for the period rose 6% (10% excluding exchange rate effects), and earnings per share, including restructuring costs, rose 17%."

"During the fourth quarter of 2010, operating profit for personal care and tissue decreased compared with the same quarter a year ago, mainly due to higher raw material costs. The improved operating profit for packaging is mainly attributable to higher prices and volumes and savings from the restructuring program. Operating profit for forest products decreased as a result of a drop in prices for publication papers. Compared with the third quarter, operating profit improved for personal care, tissue and packaging."

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