Swedish paper group SCA in record profit leap

Swedish paper group SCA in record profit leap
The Swedish paper group Svenska Cellulosa (SCA) posted on Thursday a nine-fold jump in net profit for 2012 owing to a one-off asset sale made as the company turns its focus to Asia in general and hygiene products in particular.

SCA reported 2012 net profit of 4.956 billion kronor ($760 million), up from 551 million kronor in 2011 owing to the sale of its packaging unit to the British group DS Smith for 1.6 billion euros.

SCA’s 2012 sales gained 5 percent when calculated with a constant exchange rate, to 85.408 billion kronor.

Meanwhile, the Swedish company has acquired European activities from US group Georgia-Pacific that include the Lotus handkerchief brand.

That deal underpinned “our competitive strength in the European tissue market and complements our market positions,” SCA president and chief executive Jan Johansson said in a statement.

SCA will focus now on increasing its presence in Asia, via the acquisition of Everbeauty, a Taiwanese company that sells hygiene products in China, Taiwan and Southeast Asia, the statement said.

AFP/The Local/og

Follow The Local on Twitter

Member comments

Become a Member to leave a comment.Or log in here.