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SWMA 239.7 SEK +0.1%Feb 3, 2012 5:29 PM CET
In parallel with the focus on organic growth, efforts are pursued consistently to attain a more market-oriented organization and a more efficient production structure.
The focus in recent years on significant structural and rationalization programs has led to sizeable improvements in consolidated operating profit and operating margin.
Swedish Match has continuously engaged in programs to improve its productivity. These changes have led to higher earnings and improved resource management.
For chewing tobacco, the Company has engaged in third party production agreements, and thereby supply products to a large player in the US market, improving resource allocation.
The Lights product area has also seen the completion of wide-ranging restructuring programs in recent years aimed at boosting earnings. Operations lacking clearly identifiable synergies with other businesses have been divested, as have activities which provided low earnings. In addition, rationalization programs at match plants have been completed. As a result, Group earnings have improved substantially.