Displaying items by tag: sca
SCA first Swedish listed company to issue green bond
As the first Swedish listed company, SCA has raised SEK 1.5 bn through a green bond issue. The bond proceeds will be used for investments in projects with a positive environmental impact.
The bond, which is denominated in Swedish krona (SEK), has a five-year tenor and is issued under the company's EMTN (Euro Medium Term Note) program. The bond has two tranches. One tranche 1 billion floating rate note, priced at three-month STIBOR +0,68% annually and one SEK 500m fixed rate tranche with an annual coupon of 2,5%. SCA's green bond offer was oversubscribed. The bond was placed with approximately 30 investors.
Green corporate bonds are relatively new in the bond market
For SCA, the globally leading hygiene and forest products company, sustainability is a crucial and natural part of the business model.
"SCA's sustainability activities are based on the creation of financial, environmental and social value. Each of these components holds equal importance in the drive to create a successful company. SCA's position as the first listed company in Sweden to offer a green bond is further confirmation of how important and highly prioritized our sustainability work is," says Jan Johansson, President and CEO of SCA.
Examples of investment areas for SCA's green bonds are renewable energy and energy efficiency.
Former SCA-North America Leader Buys Morcon Tissue Converter
Morcon, Inc., owner of tissue, towel and napkin converting facilities in Upstate New York and South Carolina, has announced the sale of its business to longtime paper industry executive Joseph F. Raccuia. Mr. Raccuia is the former president and CEO of SCA Tissue-North America and former president and CEO of uncoated printing paper manufacturer Finch Paper LLC.
“I bring a wide and varied background to Morcon”
The announcement was made by Morcon founder, president and CEO Wayne R. Morris, who established the business in 1987. Morcon serves the Away-From-Home commercial, food service, healthcare and industrial markets. The company employs 120 people at its Great Falls, SC, location and 85 people in Cambridge, NY, where the business is headquartered.
“Morcon is a very well-run, successful and growing business,” Mr. Raccuia said. “I’m looking forward to continuing this momentum, and working with Morcon’s employees to take the business to even greater levels of success.”
Mr. Raccuia said Morcon’s two locations are strategically located to service the eastern U.S. and key portions of the Midwest, although there are customers nationwide. His long-term plans envision additional locations to grow business in the central and western parts of the country.
During his tenure with SCA, Mr. Raccuia engineered a 35% growth in sales, taking the company from $750 million to $1 billion and propelling SCA to the number-two position in the U.S. Away-From-Home Market. Prior to joining SCA, he served in a number of leadership positions with Encore Paper Co., a tissue manufacturer in Upstate New York that was later purchased by SCA. For much of the past four years, he served as president and CEO of Finch Paper, a printing paper manufacturer in Upstate New York.
“I bring a wide and varied background to Morcon,” Mr. Raccuia said. “I have worked in the C-Suite for one of the largest tissue producers in the world, and I understand how the big players operate. At the same time, through my experience with Encore and Finch, I know how to marshal the agility, flexibility and energy of a smaller business to out-maneuver and out-service the industry giants, establish niche markets and build a sustainable, successful enterprise.”
In the immediate future, Mr. Raccuia said, his priorities are to meet with Morcon’s employees, customers and key suppliers, and begin building a go-to-market strategy that anticipates and exceeds customer expectations and capitalizes on the company’s strategic strengths.
“I know where I want to take this business, but to get there I have to draw on others’ expertise and ideas, and that includes our employees, customers and suppliers,” Mr. Raccuia said.
Morcon founder Mr. Morris, said “Morcon has been my family’s life for nearly three decades, but now is the right time for me to move. I could not have found a more qualified or interested buyer than Joe Raccuia, and would not have entrusted this business to anyone with lesser credentials or enthusiasm. Joe has a great vision for growing this business, and tremendous contacts within the industry to help him reach his goals.”
Divestment of Laakirchen mill now closed
SCA has now completed the previously announced divestment of the Laakirchen mill in Austria. The Laakirchen mill, producing magazine paper, was sold to Heinzel Group. The closing follows clearance by relevant competition authorities.
The initial purchase consideration is EUR 100m with a possible maximum additional purchase price of EUR 100m based on a two-year profit-sharing model.
The first press release regarding the transaction was published on December 19, 2012.
SCA presents Annual Report and updated logotype
SCA presents its 2012 Annual Report and Sustainability Report on www.sca.com. In recent years, SCA has transformed into a leading, global hygiene and forest products company with a strong and award-winning sustainability profile. In conjunction with this, SCA has decided to modernize its logotype and unveil its look in connection with the publication of the Annual Report.
For SCA, 2012 was an eventful year marked by change. During the year, SCA carried out some of the largest business transactions in its history, accelerating the Group’s transformation into a leading, global hygiene and forest products company. The acquisition of Georgia-Pacific’s European tissue operations and the sale of the packaging operations were finalized.
“The sale of the packaging operations represented a further step in our journey of change and ensures reduced sensitivity to economic fluctuations and financial opportunities to grow in the hygiene business. In 2012, we continued to prioritize efficiency, innovation and growth and, despite a turbulent global economy, we increased our sales and profits in 2012,” says Jan Johansson, President and CEO, SCA.
In conjunction with the publication of the Annual Report and Sustainability Report, SCA is launching an updated logotype featuring stronger, more distinct colors and softer lines. The communication concept Care of life has been written out to clarify and strengthen the message of how SCA as a company can make a difference for people, nature and society.
“We have chosen to update the SCA logotype to include it in the transformation of our company and to better reflect our business operations,” says Jan Johansson.
The following files are available for download:
SCA among the best in the world in ethics
For the sixth consecutive year, SCA has been ranked among the world’s most ethical companies. Each year, the US think-tank Ethisphere Institute meticulously analyzes several thousands of companies from various sectors. Ethisphere selects companies that systematically focus on ethical issues and highlight their critical importance to a company’s brand and profitability.
Inclusion in the Ethisphere Institute’s list is a prestigious achievement. Several thousands of companies are nominated but only a select few are chosen.
This year, for the sixth consecutive year, SCA has qualified for inclusion in the distinguished list.
SCA has worked proactively to address ethical issues. Sales are conducted in about 100 countries and production takes place in 30 countries. SCA maintains a high standing among consumers across the globe thanks to its focus on ethics.
“SCAs focus on ethical business practices and strong environmental conduct is a competitive advantage and a true business differentiator that positively impact the company’s performance,” said Jan Johansson, President and CEO of SCA.
“Our customers, consumers, employees and investors trust us because of the high level of transparency we demand at all levels of our business. We are honored to be recognized by Ethisphere for the sixth time.”
SCA announces Conversion of shares
According to SCA’s articles of association, owners of Class A shares have the right to have such shares converted to Class B shares. Conversion reduces the total number of votes in the company. When such a conversion has occurred, the company is obligated by law to disclose any such changes in this manner.
In February, at the request of shareholders 1,100,009 Class A shares were converted to Class B shares. The total number of votes in the company thereafter amounts to 1,528,406,964.
The total number of registered shares in the company amounts to 705,110,094 of which 91,477,430 are Class A shares and 613,632,664 are Class B shares.
Stockholm, Sweden, 28 February 2013
SCA Year-end Report Q4 2012
The packaging operations that were divested on June 30, 2012, are reported for the current and preceding year only as a separate line item in the income statement – Net profit for the period from disposal group. Comments in this report are thus entirely exclusive of the packaging operations.
The divestments commented on in the report refer to the formation of a joint venture in Australia/New Zealand through the sale of 50% of the shares and deconsolidation of the operations from the start of the year, and to the divestment of Aylesford Newsprint, which is deconsolidated as from the start of the fourth quarter. Figures for the preceding year and the first three quarters of 2012 have not been recalculated for these two divestments.
- Net sales rose 5% (11% excluding exchange rate effects and divestments) to SEK 85,408m (81,337)
- Operating profit excluding items affecting comparability rose 12% (17% excluding exchange rate effects and divestments) to SEK 8,646m (7,738)
- Items affecting comparability amounted to SEK -2,634m (-5,439)
- Earnings per share were SEK 7.06 (0.78)
- Cash flow from current operations was SEK 7,271m (5,306)
- The Board of Directors proposes an increase in the dividend by 7,1%, to SEK 4.50 per share (4.20)
(Table included in attached pdf)
CEO’S COMMENTS
SCA completed two major company deals in 2012 – the acquisition of Georgia-Pacific's European tissue operations and the divestment of our packaging operations, excluding the two kraftliner mills in Sweden. The Georgia-Pacific acquisition boosts our competitive strength in the European tissue market and complements our market positions. The acquisition will lead to annual cost synergies of EUR 125m, with full effect from 2016. The sale of SCA's packaging business reduces our cyclical exposure and gives us greater financial opportunities to grow our hygiene business. In 2012 SCA acquired Everbeauty, a leading Asian personal care company, which strengthens our position in Asia – especially in China.
In Forest Products, in 2012 SCA divested its 50% shareholding in Aylesford Newsprint in the UK. During the year, SCA also signed an agreement to sell the Austrian publication paper mill in Laakirchen. We are thereby focusing on our Swedish operations, which are well integrated with the nearby forest holdings.
In our hygiene operations, during the year we established a new organization and launched an extensive cost-cutting program that will lead to annual cost savings of EUR 300m, with full effect from 2015. We also introduced an efficiency program in our Forest Products operations, which will lead to annual savings of SEK 1,300m, with full effect from 2015.
Consolidated net sales for 2012, excluding exchange rate effects and divestments, rose 11% compared with the same period a year ago. Operating profit excluding exchange rate effects, divestments and items affecting comparability rose 17%. The corresponding profit for Personal Care and Tissue rose 28% and 50%, respectively, while profit for Forest Products fell by 46%. The Group's operating cash flow improved by slightly more than SEK 2bn, to SEK 9,644m.
Profit before tax, excluding exchange rate effects, divestments and items affecting comparability, rose 21%.
Simon Utsel awarded 2013 Alf de Ruvo scholarship
The 2013 Alf de Ruvo scholarship, worth SEK 500,000, has been awarded to Dr. Simon Utsel for his pioneering work on surface modification of cellulose-based materials.
By modifying the surface properties of, or by adding new properties to, cellulose-based materials, these can be utilized more effectively in various products.
The research has provided a foundation for the future development of cellulose-based materials and fiber-reinforced composite materials and shows, for example, several methods to improve interfacial adhesion between cellulose fibers and matrix materials in composites.
In February, Simon Utsel will commence a six-month postdoctoral fellowship at Stanford University, California, in the US, where he will be a member of Professor Yu Cui’s group and perform research on new opportunities for the use of cellulose-based materials in electronic components, such as batteries, capacitors, touch screens and solar cells. The aim is to tailor the structure of the materials at a nanometer level to optimize the macroscopic properties of components.
Dr. Utsel hopes to be able to contribute his knowledge predominantly in the field of cellulose, but also his polymer, surface and colloid expertise.
Simon Utsel was born in Jönköping, Sweden, in 1984 and holds a Ph.D in Pulp and Paper Chemistry and Technology from the Department of Fibre and Polymer Technology, KTH Royal Institute of Technology, in Stockholm, Sweden. His Ph.D was supervised by Professor Lars Wågberg.
The scholarship was awarded on January 22, 2013 at a ceremony in Stockholm in conjunction with the Swedish Pulp and Paper Industry’s Ekman Days.
SCA reports conversion of shares
According to SCA's articles of association, owners of Class A shares have the right to have such shares converted to Class B shares. Conversion reduces the total number of votes in the company. When such a conversion has occurred, the company is obligated by law to disclose any such changes in this manner.
In December, at the request of shareholders 653,435 Class A shares were converted to Class B shares. The total number of votes in the company thereafter amounts to 1,544,613,327.
The total number of registered shares in the company amounts to 705,110,094 of which 93,278,137 are Class A shares and 611,831,957 are Class B shares.
SCA divests publication paper mill in Laakirchen
SCA is divesting its Austrian publication paper mill in Laakirchen to Heinzel Group. In conjunction with the divestment, SCA and Heinzel Group have concluded a sales cooperation agreement.
In 2011 Laakirchen reported totaled sales of EUR 335m and had just over 500 employees. The annual capacity amounts to more than 500,000 tons.
The initial purchase consideration is EUR 100m with a possible maximum additional purchase price of EUR 100m based on a two-year profit-sharing model. In conjunction with the transaction, an impairment of EUR 50m has been recognized, which will be charged to profit in the fourth quarter of 2012.
The transaction is expected to be finalized in the first quarter of 2013 following approval by the relevant authorities.
In conjunction with the divestment, SCA and Heinzel Group have concluded a sales cooperation agreement.SCA Forest Products’ and Heinzel Group’s sales organisations complement each other and SCA will have a stronger representation on several markets for its publication paper, pulp and kraftliner products. The sales collaboration is scheduled to come into effect when the transaction has been finalized.
Following the divestment of Laakirchen, SCA’s remaining publication papers operations will be concentrated to Sweden, close to its forest holding.