Metso Oyj (OMX: MEO1V) will deliver biggest mining cones crushers it has built to Codelco to be used in the world’s largest open pit copper mine, the Finnish engineering company said today. The operational weight of a single crusher exceeds 150 tonnes and has the ability to process up to 1800 tonnes of ore per hour in secondary position. The order value is more than 9 million Euros. Chuquicamata mine is located in the Atacama Desert in Northern Chile. Over its long operations, many Nordic workers have become very familiar with the working conditions over there.
Last week the company noted it will supply a board machine rebuild for SCA’s (OMX: SCA) Piteå mill. This will increase the annual capacity of the mill’s value added white top kraftliner products by 55 000 tonnes to 165 000 tonnes in total. The company also said it will also acquire full ownership of the heat and power plants supplier MW power joint venture by buying out Wärtsilä’s (OMX: WRT1V) 40% stake subject to required approvals.
Showing posts with label SCA. Show all posts
Showing posts with label SCA. Show all posts
Monday, 4 June 2012
Wednesday, 18 April 2012
SCA’s report weighs on the sector
Svenska Cellulosa Aktiebolaget (OMX: SCA B) reported sluggish sales growth of 1% in Q1 2012 compared to Q1 2011. Net sales of just below 19.5 billion SEK generated gross profit of 4.8 billion. Operating profit excluding items affecting comparability was up 4% to 1.834 billion and profit before tax is just over 1.5 billion.
Packaging operations held for sale and the acquisition of Georgia-Pacific's European tissue operations are ongoing matters that need to be taken into account. The company said those are progressing according to plan. Operating cash flow increased marked on lower working capital vs. comparison period.
Personal Care and Tissue segments showed rapid growth mainly in emerging markets and EBIT was up vs. last year. Compared to Q4 2011 margins were disappointing. Some of this is explained by seasonal factors. In Forest Products sales were flat vs. Q1 2011 where as margins were down particularly fast, catching analysts completely off-guard. The entire sector has retreated today on that news.
SCA also said it is acquiring the remaining 50% of the Chilean hygiene company Papeles Industriales S.A. (PISA) de Santiago for 520 million SEK. PISA’s 2011 turnover was around 780 million, with 0% from tissue segment and 30% from AFH (away from home) hygiene products.
SCA bought into PISA Group in 2003. It is second largest company in Chile with consumer tissue and AFH tissue and has around 400 employees. SCA said this is the right time to take the next step in Latin American expansion. SCA’s is down almost 8% just before market close.
Packaging operations held for sale and the acquisition of Georgia-Pacific's European tissue operations are ongoing matters that need to be taken into account. The company said those are progressing according to plan. Operating cash flow increased marked on lower working capital vs. comparison period.
Personal Care and Tissue segments showed rapid growth mainly in emerging markets and EBIT was up vs. last year. Compared to Q4 2011 margins were disappointing. Some of this is explained by seasonal factors. In Forest Products sales were flat vs. Q1 2011 where as margins were down particularly fast, catching analysts completely off-guard. The entire sector has retreated today on that news.
SCA also said it is acquiring the remaining 50% of the Chilean hygiene company Papeles Industriales S.A. (PISA) de Santiago for 520 million SEK. PISA’s 2011 turnover was around 780 million, with 0% from tissue segment and 30% from AFH (away from home) hygiene products.
SCA bought into PISA Group in 2003. It is second largest company in Chile with consumer tissue and AFH tissue and has around 400 employees. SCA said this is the right time to take the next step in Latin American expansion. SCA’s is down almost 8% just before market close.
Wednesday, 11 April 2012
Nordic markets retreat ahead of Q1 2012 earnings releases
Nordic exchanges returned from holidays worried about the macroeconomic numbers. Worries about Spain have been mounting as the Euro zone gears up for the ultimate showdown. Numbers from China were interpreted in a way that strengthened the already dour mood from United States non-farm payrolls miss.
Nordic high beta stock posted ugly numbers with many large cyclical stocks nearing double-digit losses. The gainers were few and far between. Thrane & Thrane (OMXC: THRAN) predictably was among them as Cobham followed up on its recent purchases with a cash offer of DKK 420 for each share.
Norsk Hydro's (OSE: NHY) peer Alcoa kick-started earnings season across the pond with better than expected numbers after market close. The American aluminium company maintained its expectations for global aluminium demand growth of 7% and a supply deficit for 2012.
Svenska Cellulosa Aktiebolaget (OMX: SCA B) added another 4.9% of the shares in leading Chinese tissue company Vinda into its holdings with about 600 million SEK purchase subject to consent from Vinda’s lenders. The seller was a company called Fu An, which is owned by the Chairman of Vinda Li Chao Wang. The transaction was done at a 22% premium on Vinda’s (SEHK: 3331) Tuesday closing price. SCA’s stake following the transaction will be 22.61% while Fu An remains the largest shareholder.
Nordic high beta stock posted ugly numbers with many large cyclical stocks nearing double-digit losses. The gainers were few and far between. Thrane & Thrane (OMXC: THRAN) predictably was among them as Cobham followed up on its recent purchases with a cash offer of DKK 420 for each share.
Norsk Hydro's (OSE: NHY) peer Alcoa kick-started earnings season across the pond with better than expected numbers after market close. The American aluminium company maintained its expectations for global aluminium demand growth of 7% and a supply deficit for 2012.
Svenska Cellulosa Aktiebolaget (OMX: SCA B) added another 4.9% of the shares in leading Chinese tissue company Vinda into its holdings with about 600 million SEK purchase subject to consent from Vinda’s lenders. The seller was a company called Fu An, which is owned by the Chairman of Vinda Li Chao Wang. The transaction was done at a 22% premium on Vinda’s (SEHK: 3331) Tuesday closing price. SCA’s stake following the transaction will be 22.61% while Fu An remains the largest shareholder.
Sunday, 26 February 2012
SCA makes an offer for Everbeauty Corporation
Svenska Cellulosa Aktiebolaget (OMX: SCA B) says it has made a binding offer to acquire Everbeauty Corporation. SCA is offering approximately 1.9 billion SEK on debt-free basis. Everbeauty has annual sales of about 1.6 billion SEK and some 900 employees. Everbeauty would fit well under the Swedish company’s increased Hygiene products offering, with a strong position in Asia being one of the stated priorities.
The Taiwan-based disposable diaper manufacturer has operations mainly in Asia but also sales in Africa and Central America. In 1993 the company expanded into Mainland China with the founding of Everbeauty Shanghai Ltd. SCA would gain access to an extensive distribution network and sales organization.
Products include baby diapers (60% of sales) and incontinence care products (40%) with brands such as Sealer and Dr P. The company would fit well under SCA’s Hygiene products offering. Everbeauty is a market leader in incontinence care products in Taiwan and number 2 in Mainland. In baby diaper products it comes in at number 5 in both places. The proposal is subject to Everbeauty being privatized under Taiwanese law and also subject to certain other conditions such as authorities approvals. The deal is expected to close in the summer.
The Taiwan-based disposable diaper manufacturer has operations mainly in Asia but also sales in Africa and Central America. In 1993 the company expanded into Mainland China with the founding of Everbeauty Shanghai Ltd. SCA would gain access to an extensive distribution network and sales organization.
Products include baby diapers (60% of sales) and incontinence care products (40%) with brands such as Sealer and Dr P. The company would fit well under SCA’s Hygiene products offering. Everbeauty is a market leader in incontinence care products in Taiwan and number 2 in Mainland. In baby diaper products it comes in at number 5 in both places. The proposal is subject to Everbeauty being privatized under Taiwanese law and also subject to certain other conditions such as authorities approvals. The deal is expected to close in the summer.
Thursday, 26 January 2012
SCA reports fair numbers in continuing operations on Q4, one-off items affect comparison
Svenska Cellulosa Aktiebolaget’s (OMX: SCA B) fourth quarter sales were down by about 1% to 26.749 billion SEK but corrected for exchange rate effects and divestments they were somewhat higher. Operating profit excluding special items was 2.5 billion but large one-off items, particularly a 4.6 billion goodwill impairment pushed profit for the period down to minus 3.4 billion.
Recently announced major transactions currently under review, a binding offer for Georgia-Pacific’s European tissue operations and the divestment of SCA packaging, are still the biggest story concerning the company. The company foresees major synergies, lower sensitivity to economic swings and gradually higher earnings in the future. Efficiency improvement measures and new product launches coupled with growth into new markets is estimated to help towards that end.
Both Personal Care and Tissue showed nice growth in Q4 although the yearly performance was less spectacular. Packaging and Forest Products didn’t fare so well in the last quarter. Incontinence care products demand in the emerging markets is favourable and same is true for Tissue segment. SCA’s board proposes a 5% dividend hike. The stock is up 3%, which is slightly more than the index.
Recently announced major transactions currently under review, a binding offer for Georgia-Pacific’s European tissue operations and the divestment of SCA packaging, are still the biggest story concerning the company. The company foresees major synergies, lower sensitivity to economic swings and gradually higher earnings in the future. Efficiency improvement measures and new product launches coupled with growth into new markets is estimated to help towards that end.
Both Personal Care and Tissue showed nice growth in Q4 although the yearly performance was less spectacular. Packaging and Forest Products didn’t fare so well in the last quarter. Incontinence care products demand in the emerging markets is favourable and same is true for Tissue segment. SCA’s board proposes a 5% dividend hike. The stock is up 3%, which is slightly more than the index.
Tuesday, 17 January 2012
Nordic pulp & paper firms get a lift as SCA divests packaging business
Svenska Cellulosa Aktiebolaget (OMX: SCA B) has agreed to divest its packaging business excluding two krafliner mills in Sweden to British paper and plastic packaging materials and office supplies group DS Smith Plc for a debt free price of 1.7 billion Euros. The 2010 net sales of the operations in question were approximately 2.5 billion Euros and the business was profitable as has been the norm with an operating profit of about 117 million. The purchase price equals an EBITDA multiple for Q4 2010 – Q3 2011 of 6.4.
SCA packaging operations excluding the kraftliner mills employ 12 000 people and is the second largest packaging business in Europe with market share above 8%. The geographical focus is in Northern and Central Europe. The products are Long recycling, Long packaging and Short paper (product lines for recycled fibre, corrugated and containerboard). The business is not particularly cyclical and maintains a good outlook and this can be seen in the price.
SCA is focusing on growing its hygiene products business. The company is already the world’s third largest hygiene products company. SCA’s hygiene business is further divided to products for Personal Care and Tissue. In Personal Care segments such as incontinence care, baby diapers and feminine care are areas of particular strength for SCA. SCA also recently made a binding offer for Georgia-Pacific’s European tissue business worth 1.32 billion Euros. The company foresees double-digit growth in both Personal Care and Tissue. Post-divestment the hygiene business would account for circa 80% of SCA’s net sales.
SCA will take a goodwill write-down of 4 billion or so abolishing the goodwill related to remaining krafliner operations. SCA is keeping them since they are very integrated with the company’s forest products operations. The debt/equity ratio will come down to 0.5 providing this deal and the Georgia-Pacific offer goes through as planned. The deal is subject to DS Smith shareholder approval and EU commission competition authorities ruling. DS Smith aims to finance the deal with debt and equity issuance. Closing is expected in Q2 2012. SCA gained almost 10% in Stockholm and DS Smith was up by nearly 4% in London.
SCA packaging operations excluding the kraftliner mills employ 12 000 people and is the second largest packaging business in Europe with market share above 8%. The geographical focus is in Northern and Central Europe. The products are Long recycling, Long packaging and Short paper (product lines for recycled fibre, corrugated and containerboard). The business is not particularly cyclical and maintains a good outlook and this can be seen in the price.
SCA is focusing on growing its hygiene products business. The company is already the world’s third largest hygiene products company. SCA’s hygiene business is further divided to products for Personal Care and Tissue. In Personal Care segments such as incontinence care, baby diapers and feminine care are areas of particular strength for SCA. SCA also recently made a binding offer for Georgia-Pacific’s European tissue business worth 1.32 billion Euros. The company foresees double-digit growth in both Personal Care and Tissue. Post-divestment the hygiene business would account for circa 80% of SCA’s net sales.
SCA will take a goodwill write-down of 4 billion or so abolishing the goodwill related to remaining krafliner operations. SCA is keeping them since they are very integrated with the company’s forest products operations. The debt/equity ratio will come down to 0.5 providing this deal and the Georgia-Pacific offer goes through as planned. The deal is subject to DS Smith shareholder approval and EU commission competition authorities ruling. DS Smith aims to finance the deal with debt and equity issuance. Closing is expected in Q2 2012. SCA gained almost 10% in Stockholm and DS Smith was up by nearly 4% in London.
Sunday, 1 January 2012
Fireworks ignite a major fire in Akaa
Local police is investigating a fire at a large warehouse building in Akaa, Finland. The premises belong to SCA Packaging Pakkasjaloste Oy, a subsidiary of Svenska Cellulosa Aktiebolaget (OMX: SCA B). The initial estimate places the magnitude of damages in hundreds of thousands of Euros. Five children, four of whom were under 15 (the age of criminal liability in Finland) playing with fireworks are suspected to have caused the fire, making parents responsible for the costs.
Friday, 22 July 2011
SCA's quarter
Svenska Cellulosa Aktiebolag (OMX: SCA B) reported of 5% sales growth excluding exchange rate effects. Operating profit was up a percent after the same trick. Earnings per share were up as there weren’t any restructuring costs this quarter. Price increases and cost cutting more than compensated for higher raw material prices.
SCA is guiding for good demand for all businesses in 2011 and particularly good growth for Hygiene business from emerging markets. The company foresees continued high raw material costs and increasing corrugated prices. The stock advanced 4.62%. More information here.
SCA is guiding for good demand for all businesses in 2011 and particularly good growth for Hygiene business from emerging markets. The company foresees continued high raw material costs and increasing corrugated prices. The stock advanced 4.62%. More information here.
Wednesday, 13 July 2011
UPM's Myllykoski and Rhein Papier deal approved
EU commission unconditionally approves UPM Kymmene's (OMX: UPM1V) Myllykoski and Rhein Papier GmbH deal discussed in detail in 21.12.2010 blog item. Competitors Stora Enso (OMX: STERV) Holmen (OMX: HOLM B) Svenska Cellulosa Aktiebolaget (SCA) (OMX: SCA B), M-Real (OMXH: MRLAV, OMXH: MRLBV) and Norske Skog (OSE: NSG) are also up strongly on the news.
EU commission conducted an in-depth investigation and concluded that the combined entity will face enough competition so as to that consumers are not hurt. Competitors also have significant spare capacity left. Nevertheless some of the excess capacity in the field may now be cut by UPM. Analysts had been suggesting to buy European pulp & paper sector companies ahead of the approval as it was speculated that a ruling would be positive.
Combined Myllykoski and Rhein Papier have even paper mills with annual capacity of around 2.8 million tonnes. Myllykoski is a family business with long traditions. The owners have been rueing post initial announcement that situation had to come to this and now the most likely cuts should be from its assets. Rhein Papier has a couple of prime assets. UPM has now cleared all regulatory hurdles and expects final closing of the 900 million Euro per enterprise value deal within a month. UPM Kymmene's release is available here.
EU commission conducted an in-depth investigation and concluded that the combined entity will face enough competition so as to that consumers are not hurt. Competitors also have significant spare capacity left. Nevertheless some of the excess capacity in the field may now be cut by UPM. Analysts had been suggesting to buy European pulp & paper sector companies ahead of the approval as it was speculated that a ruling would be positive.
Combined Myllykoski and Rhein Papier have even paper mills with annual capacity of around 2.8 million tonnes. Myllykoski is a family business with long traditions. The owners have been rueing post initial announcement that situation had to come to this and now the most likely cuts should be from its assets. Rhein Papier has a couple of prime assets. UPM has now cleared all regulatory hurdles and expects final closing of the 900 million Euro per enterprise value deal within a month. UPM Kymmene's release is available here.
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