Expressed in local currencies,
Swedish Match sales during the first nine months of 1996
increased for all divisions. Translated to Swedish krona, sales
declined marginally from SEK 5,535 million to SEK 5,436 million.
The effect of the stronger Swedish krona on sales value was
negative of approx. 350 million.
Operating income before
nonrecurring items rose 19 percent to SEK 1,223 million, from SEK
1,032 million during the first nine months of 1995. All divisions
reported earnings improvements.
Income before taxes and minority
interests amounted to SEK 1,037 million (1,223) after
nonrecurring items of SEK -123 million (+261). Net income for the
first nine months amounted to SEK 715 million (853).
President and CEO Göran
Lindén comments on report:
"All divisions reported significant earnings improvement for
the full nine-month period. The Tobacco Nordic and Tobacco USA
divisions accounted for the largest increases as well as
reporting a strong third quarter."
"The earnings improvements in
these divisions are attributable to increased sales of the
smokeless tobacco products, whose relative share of the
Group’s sales now amount to 27 percent. It is worth noting
that Swedish Match, compared with a number of other tobacco
companies, is less dependent on the trend of cigarette sales due
to its large element of moist snuff and chewing tobacco. In the
U.S., where legal actions against cigarette companies are common
and often influence assessments of the tobacco industry, we do
not sell any cigarettes."
"The earnings improvement in
the Light Division is attributable mainly to increased sales of
disposable lighters and productivity improvements. The problems
of depressed prices and low margins remain in certain
markets."
"Cost reductions attained
through closure of the tobacco plants in Arvika and Härnösand,
Sweden, and Tallinn, Estonia, as well as one of the match
factories in Hungary, will have a positive effect on Group
earnings as of 1997."