SCA rushes on the stock market after a clear report

Forest Group SCA's third quarter report showed a substantial increase in earnings from EBITDA, both from the prior quarter and from the third quarter of the previous year. Good demand in all sectors of the company's business and favorable exchange rate developments explain this rise.

Major investments in a new pulp mill in Östrand are under development in line with the plan. However, some project costs are slightly adjusted.

"The market performance during the quarter remained stable with unchanged or rising prices in all SCA products," writes the company.

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Stable diet

Earlier problems related to wood supply are now a memory and supply is termed "stable".

For Wood, which processes sawnwood, ebitda earnings increased by 48% to SEK 276 million. Higher sales prices and positive currency effects more than offset more expensive inputs.

"Stocks of sawnwood are generally low," says the company without giving any forecasts on future developments.

Massa's business sector saw EBITDA earnings rise 73 percent from the third quarter of last year due to higher mass prices.

"The mass market has remained strong with strong demand in all markets," writes SCA.

The paper sector also recorded a sharp rise in EBITDA to 728 million euros, up 66% from 2017.

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Expensive newsprint

"The evolution of the power line market remained stable during the quarter with unchanged prices.For paper paper, the capacity reductions of paper producers have helped to better balance supply and demand. . " Price increases were recorded during the quarter for coated and coated paper, "said the company.

Investment in the Östrands pulp mill is growing as planned, with 90% of invested capital representing 7.8 billion SEK. Project costs for 2018 are, however, adjusted to SEK 75 million or less, compared to an earlier estimate of about 60 million SEK.

SCA's ebitda profit was SEK 1,549 million (SEK 1,049) for the third quarter and the EBIT margin at 32.5% (24.8).

Sales amounted to SEK 4,759 million for the period (4,231). This means sales growth of 12%, including price / composition 14%, volume -9% and currency 7%.