Net sales were on a par with the preceding year (rose by 1% excluding exchange rate effects) and amounted to SEK 17,180m (17,123). Higher prices primarily for publication papers in addition to acquisitions increased sales by 2% and 1%, respectively. Lower volumes decreased sales by 2%.
Up until November 2011, demand in Western Europe for magazine paper had declined by 4% compared with the corresponding year-earlier period. Demand for newsprint fell by 3% during the same period. Prices for both magazine paper and newsprint increased in 2011 compared with the preceding year.
During the year, SCA and the Norwegian company Fred.Olsen Renewables formed a jointly owned company to build two wind farms on SCA’s land in Västernorrland county, Sweden. The area has the potential for approximately 2 TWh in annual wind power generation. In a partnership project with the Norwegian company Statkraft, construction commenced on the first wind farm during the year. Wind power is an example of new areas of use for SCA’s forest assets.
At the end of the year, the new lime kiln was inaugurated at Östrand pulp mill. The new facility will reduce carbon dioxide emissions by 80% and cut costs by about SEK 50m on an annual basis.
A decision was made during the year to rebuild one of the newsprint machines in Ortviken, Sundsvall, Sweden, to enable production of higher paper grades.
Operating profit
declined by 18% to SEK 2,001m (2,455). Profit for the publication papers operation improved to SEK 183m (–88). Higher prices for publication papers offset higher raw material costs and negative exchange rate effects. The lower operating profit for the pulp and sawmill operations was mainly attributable to higher raw material costs and negative exchange rate effects. Completed productivity improvements had a favourable impact on profit.
was 11.6% (14.3).
was 6% (8).
Operating cash surplus
amounted to SEK 2,700m (3,216), while the operating cash flow was SEK 1,642m (1,860).
Capital expenditures
totalled SEK 1,200m (888).