Operating profit excluding items affecting comparability rose 10% (12% excluding exchange rate effects and divestments) to SEK 3.94 million ($586,978).
Compared with second quarter 2011, net sales for the second quarter 2012 decreased by 1% (increased by 2% excluding exchange rate effects and divestments) to SEK 20.27 million ($3.02 million). Higher volumes increased sales by 2%.
The hygiene operations performed well, according to the company, with favorable growth and a strong earnings improvement. The group's growth in net sales during the first half of 2012, excluding exchange rate effects and divestments, was 4%. The sales increase continued to be high in emerging markets, where Personal Care and Tissue increased sales by 21% and 16%, respectively.
SCA recently completed the acquisition of Georgia-Pacific's European tissue operations, marking the fifth significant deal closed during the last quarter, notes Jan Johansson, president and CEO of SCA.
“The acquisition of Georgia-Pacific's European tissue operations will strengthen our product offering as well as our geographic presence in Europe. Substantial synergies will also be generated. Through the acquisition of Everbeauty and an increased shareholding in Vinda, we have a good position to continue to expand in China, Taiwan and Southeast Asia. The acquisition of the remaining 50% shares in Pisa in Chile strengthens our expansion opportunities in Latin America. As per the end of June, SCA's packaging business has been sold, excluding the two kraftliner mills in Sweden, to the British company DS Smith. The divestment has enabled expansion and creates opportunities for continued growth in the hygiene operations.”
Operating profit for the second quarter of 2012, excluding exchange rate effects, divestments and items affecting comparability increased by 16% compared with the same period a year ago. Profit for Personal Care and Tissue rose 34% and 53%, respectively. Profit for Forest Products fell 34%.