By Christina Zander
STOCKHOLM--Swedish hygiene product and paper company Svenska
Cellulosa AB (SCA-B.SK) said Friday that higher raw-material prices
and a stronger dollar weighed on earnings as it reported a lower
net profit for the fourth quarter that missed expectations.
The U.S. dollar strengthened considerably during the quarter
which led to, among other things, higher costs for raw materials
that are purchased in U.S. dollars, such as pulp.
The company said net profit for the three months ended Dec. 31
fell to 1.44 billion Swedish kronor ($174 million) from SEK1.84
billion in the year-earlier quarter. Analysts polled by financial
information company Six expected a net profit of SEK1.92 billion in
the quarter.
The company said it saw good growth in its emerging-market
hygiene business and announced an increased full-year dividend of
SEK5.25 from SEK4.75 last year.
Sales in the quarter rose to SEK27.4 billion from SEK23.42
billion in the year-ago period. Operating profit fell to SEK2.36
billion from SEK2.95 billion.
SCA's fourth quarter was marked by controversy, which led
ultimately to the departure of its chairman Sverker Martin-Lof, a
powerful figure in Swedish business. The move followed weeks of
media scrutiny into Mr. Martin-Lof's use of a holding company's
jets for private trips and came amid questions from shareholders
over the governing structure at investment firm Industrivarden AB,
where he was chairman, which together with the Wallenberg-family's
Investor AB controls much of corporate Sweden.
Write to Christina Zander at christina.zander@wsj.com ; Twitter:
@WSJNordics
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