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Investing.com -- Svenska Cellulosa Aktiebolaget (STO:SCAB) on Friday reported second-quarter EBITDA of SEK2,033 million, exceeding analyst consensus estimates of SEK1.93 billion by 5%.
The Swedish forest products company saw significant improvement from first-quarter results of SEK1,651 million, with containerboard operations delivering SEK451 million against consensus expectations of SEK362 million.
Earnings per share reached SEK1.55, surpassing the consensus estimate of SEK1.42.
SCA maintained stable wood supply during the quarter, though the company noted pulpwood market saturation with some forest operators reducing price lists.
Sawn wood prices increased quarter-over-quarter, driven by seasonal demand and higher sawlog costs, though overall demand remains cautious. Producer inventories increased while consumer stocks remain low.
The pulp segment experienced inventory growth amid weak demand in China and Europe, while U.S. demand remained normal. Containerboard pricing improved quarter-over-quarter, with production at strong levels helping to reduce costs.
Despite normal demand, containerboard stocks increased during the second quarter.
Jefferies analysts note that currency effects and mark-to-market pricing adjustments suggest potential downside of 5-10% to the consensus 2025 EBITDA estimate of SEK7 billion.
SCA, which owns forest assets and operates as an integrated pulp and paper producer, maintains advantages in self-sufficiency across wood, energy and logistics.
The company’s forest holdings are valued at SEK122 per share after applying a 20% liquidity discount to the SEK107.8 billion balance sheet value.
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