Brief: SCA Says Lower Selling Prices And Higher Costs In Q3

Svenska Cellulosa Aktiebolaget SCA

27/10/2023 07:23

Oct 27 (Reuters) - Svenska Cellulosa SCA AB  SCAb.ST :
    * DUE TO HIGH RATE OF SELF-SUFFICIENCY IN WOOD RAW MATERIAL,
ENERGY, AND LOGISTICS, SCA GENERATED GOOD PROFITABILITY AND
STRONG OPERATING CASH FLOW IN Q3, DESPITE LOWER SELLING PRICES
AND HIGHER COSTS FOR WOOD RAW MATERIAL
    * NEW PAPER MACHINE IN OBBOLA AND NEW CTMP FACILITY AT
ORTVIKEN
SITE CONTRIBUTED TO HIGHER DELIVERY VOLUMES
    * SUPPLY OF WOOD RAW MATERIAL TO SCA'S INDUSTRIES WAS STABLE
DURING QUARTER
    * PRICE OF PULPWOOD CONTINUED TO RISE WHILE PRICE OF SAWLOGS
WAS
STABLE COMPARED WITH PRECEDING QUARTER
    * SELLING PRICES FOR SOLID-WOOD PRODUCTS DECREASED COMPARED
WITH
PRECEDING QUARTER DUE TO LOWER DEMAND IN MOST CUSTOMER SEGMENTS
AND REGIONS
    *  DEMAND IN PULP SEGMENT WAS WEAK FOR BOTH NORTHERN
BLEACHED
SOFTWOOD KRAFT PULP (NBSK) AND CHEMI-THERMOMECHANICAL PULP
(CTMP), WHICH RESULTED IN LOWER SELLING PRICES IN ALL REGIONS
    * LOW DEMAND FOR PACKAGING MATERIAL CONTRIBUTED TO CONTINUED
WEAK
DEMAND FOR KRAFTLINER AND SELLING PRICES WERE IN LINE WITH
PRECEDING QUARTER
    * LOWER SELLING PRICES WERE OFFSET BY EFFECTIVE COST CONTROL
DUE
TO HIGH RATE OF SELF-SUFFICIENCY IN PRIMARLY WOOD RAW MATERIAL
BUT ALSO ENERGY AND LOGISTICS

Source text for Eikon:  ID:nWkr7g5q23 
Further company coverage:  SCAb.ST 

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