SCA beats third-quarter earnings prediction

SCA surpassed industry forecasts with its third-quarter results, despite witnessing a slide in operating profit for the first nine months of 2011.

The Stockholm-based firm saw its pre-tax profit excluding restructuring charges drop eight percent from a year earlier to reach 2.08 billion kronor (198.7 million pounds), beating an average forecast of 1.94 billion kronor in a poll by Reuters.

Net sales increased by one percent in the third quarter of the year, while earnings per share for the first nine months were up two percent.

The company launched a major efficiency drive during the third quarter, which will affect jobs in its personal care, tissue and packaging divisions.

Commenting on the results, chief executive Jan Johansson said ongoing global uncertainty has made the economic outlook "difficult to judge" for SCA.

"So far we have not seen any negative impact on the demand for our products," he added.

Swedbank analyst Claes Rasmussen told Reuters that the company appears to be "on the ball", as evidenced by its decision to launch an extensive restructuring programme in an uncertain market.