Annual Report 1998

28
Raw materials supply
Strong cash flow for Forest and Timber.
Major savings within Raw Material and Logistics.
FOREST AND TIMBER RAW MATERIALS
AND LOGISTICS
Key ratios 1998
Group
share % 1997
Net sales (SEK M) 3,985 7 4,158
of which, intra-Group 1,638 1,662
Operating profit (SEK M)
of which, capital gains
722 11 812
on sales of forest land 32 8
Operating margin (%)
Operating cash
18 20
flow (SEK M)
Capital employed
672 10 791
excl. goodwill (SEK M) 4,984 11 4,877
Return (%)
Capital expenditures
(SEK M)
15 17
– strategic 119 5 –
– current 162 8 118
Average no. of employees 1,118 3 1,221
Production capacities shown on page 75.
Net No. of
Net sales and sales, SEK M employees
number of employees 1998 1997 31 Dec. 1998
Forestry operations 3,559 3,647 391
of which, intra-Group 782 870
Sawmill operations 1,414 1,583 472
of which, intra-Group 206 202
Other –988 –1,072 73
Total 3,985 4,158 936
Production and deliveries
Change
Sawn timber 1998 1997 %
Produced volume, m 3 653,000 750,300 –13
Deliveries, m 3 672,000 704,300 –5
Wood consumption, million m 3 fub 1998 1997
SCA’s Swedish forest products mills 5.75 5.83
Fellings, million m 3 fub 1998 1997
On own forest land 3.94 3.78
As a % of wood consumption 69 65
Forest value
(2,3 million hectares, of which 1.8 million
hectares are productive forest land) 1998 1997
Book value (SEK M) 4.582 4.570
Forest land tax assessment
value (SEK M) 6.779 10.209
Estimated market value
after tax (SEK M)* 16.000 15.100
after tax, per hectare (SEK) 9.100 8.600
* This value is calculated on the basis of average earnings for
forest operations (excl. capital gains) in the period 1995–1998
and an assessment for 1999, capitalized at a real rate of interest
of 4%. See Note 24, page 61.
PRODUCTION FACILITIES
Forestry operations
Six forest districts, two wood procurement units, a plant
nursery and forest-fuel service unit.
Sawmill operations
Sawmills at Tunadal (Sundsvall), Lugnvik (Kramfors),
Holmsund (Umeå) and Munksund (Piteå). Marketing
companies in the Netherlands and Great Britain, as well
as a partly owned market company in France.
Price trend for sawn whitewood
(spruce) and redwood (pine)
Index
150
125
100
75
50
94 95 96
Whitewood
Redwood
97
98
Excess supplies of redwood depressed
prices during 1998.
SCA Recycling
(includes SCA Transport UK)
Sales: SEK 1,333 M (1,250) of which intra-Group
SEK 923 M (822).
Number of employees: 607 at 31 December 1998.
SCA Transforest
Sales: SEK 1,358 M (1,206).
Number of employees: 185 at 31 December 1998.
SCA Transport UK
Sales: SEK 329 M (311).
Number of employees: 262 at 31 December 1998.
Index
500
400
300
200
100
0
Price trend for
recovered paper
94 95 96 97 98
Old Corrugated Container (OCC)
News and PAMS
Stability in recovered paper prices was
maintained during 1998.