SCA SALES AND PROFITS UP IN Q3
In the first nine months of the year, SCA’s net sales increased by 3% compared with the same period in the previous year to SKr78.1 billion ($12.3 billion). Higher prices, primarily for corrugated board, but also for solid-wood products and tissue, and higher volumes increased net sales by 7%. Net sales were negatively affected by divestments by 2% and exchange rate fluctuations by 2%. Profit before tax improved by 17% and amounted to SKr5.9 billion.

In the third quarter. net sales rose 1% from Q2 levels to a record high SKr26.4 billion. The increase is an effect of continued price increases for corrugated board and solid-wood products as well as improved volumes for the tissue operations. The operating surplus margin improved to 15.4%. Profit before tax was on a par with the previous quarter at SKr2.0 billion.

GOOD PROGRESS
Chief executive Lennart Persson commented: “The improvement in earnings compared with the previous year continues. Profit before tax is 17% higher and all business areas improved their operating profit. At the same time, SCA’s operations maintained the earnings level from the strong second quarter.

“Demand for the group’s products remains high with opportunities for further price improvements while raw material and energy costs are expected to be higher than during the third quarter.

“The acquisition of Procter & Gamble’s tissue operations marks a key strategic step in the work of improving SCA’s tissue operations in Europe. The deal was closed on 1 October and has clearly strengthened SCA’s leading position in Europe.”

In tissue net sales amounted to SKr24 billion, up 2% compared with the corresponding period in 2006. In the European and North American operations prices improved by 5% while exchange rate fluctuations offset this improvement.

SCA continued to improve its customer offering and product mix during the quarter. Zewa overtook the leading competing brand and became market leader in Romania. In South America and Australia marketing and market investments were intensified in order to strengthen the local brands which resulted in maintained high and strong market shares. Sales of AfH tissue developed well due to new contracts and the high season in the restaurant and hotel industry.

In personal care net sales amounted to SKr16.4 billion, 3% higher than in the corresponding period in 2006. Increased volumes and higher prices improved net sales by 5%.

Sales of incontinence products to the healthcare sector were seasonally lower during the third quarter. In Europe, SCA continues its successful transfer from old to more modern products. This is happening fast and strengthening profitability. In Europe, there is still intense competition within baby diapers, but Libero’s market positions remain strong. Continued product upgrades led to production adjustments which reduced sales of diapers for retailers’ brands during the quarter.

P&G REPORTS EPS UP 16% ON 8% SALES GROWTH
On 30 October Procter & Gamble announced net sales growth of 8% to $20.2 billion for the quarter. Every reportable segment delivered mid-single digit or higher sales growth. Organic sales were up 5% for the quarter, in line with the company's 4-6% target growth range. The Fabric & Home Care, Baby & Family Care and Grooming segments led the growth behind continued strong results on product initiatives across the globe.

Earnings per share were up 16% to $0.92 per share, including a one- time tax benefit which increased EPS by $0.02 per share. The company's EPS growth, excluding the onetime benefit, was 14%. Earnings per share grew primarily behind strong sales growth and a 30- basis point improvement in operating margin.

The company raised its fiscal year EPS outlook by $0.02 to reflect the one-time tax benefit. "The fiscal year is off to a good start," said AG Lafley, chairman of the board and CEO. "P&G continues to deliver broad-based top and bottom-line growth across its portfolio of businesses and geographies. This momentum, along with a robust initiative pipeline for the year, gives us confidence that P&G will deliver another strong year of growth."

KIMBERLY-CLARK ANNOUNCES THIRD QUARTER 2007 RESULTS
On 22 October Kimberly-Clark reported that net sales in the third quarter of 2007 increased 9.7% to $4.6 billion, setting a new quarterly record. The improvement was highlighted by excellent volume gains for many of the company's well-known personal care, consumer tissue and K-C professional brands and a 12th consecutive quarter of double-digit sales expansion in developing and emerging markets.

Overall, organic sales growth totaled 7% and changes in currency exchange rates also benefited sales by about 3%.

The higher sales, along with continued success in reducing costs, enabled the company to fund a $10 million increase in strategic marketing spending and deliver a 6% increase in adjusted operating profit for the quarter despite approximately $70 million of cost inflation. A lower share count, partially offset by a related increase in interest expense, also contributed to the bottom-line improvement versus the year-ago period.

Chairman and CEO Thomas J Falk said, "I'm encouraged by the progress we have made again this quarter under our global business plan. We're focused on driving our targeted growth initiatives and continually improving our capabilities and cost effectiveness. As a result, we have generated better-than-expected top-line growth and a solid improvement in adjusted operating profit at a time when cost inflation has pressured our margins. Overall, our teams are doing a great job of delivering on our bottom-line commitments in the shortterm while at the same time making the necessary changes to further strengthen our competitive position and prospects for longterm sustainable growth."