Svenska Cellulosa AB (SCAA), Europe’s biggest tissue maker, rose the most in more than six months after earnings beat analysts’ estimates and it closed an acquisition.
SCA gained as much as 6.1 percent, the most since Jan. 17, and was up 4.7 percent at 116.2 kronor as of 1:35 p.m. in Stockholm, where the company is based. The share has gained 14 percent this year, valuing the company at 82 billion kronor ($11.9 billion).
“The result was better than expected both in tissue and personal care, that’s the main driver of the share gain,” Markku Jarvinen, an analyst at Evli Bank Plc in Helsinki who recommends investors buy SCA’s shares, said by phone. “The closure of the Georgia-Pacific unit acquisition was a positive as well.”
Second-quarter net income fell to 1.3 billion kronor from 1.38 billion kronor a year ago, the company said today in a statement. That beat the average estimate of 1.28 billion kronor in a Bloomberg survey of nine analysts. Sales fell 0.7 percent to 20.3 billion kronor.
SCA today completed the purchase of Georgia-Pacific LLC’s European tissue operations for 1.32 billion euros ($1.62 billion) to add brands including Lotus. Approval of that deal had been pending since it was first announced in November.
SCA, which is Europe’s biggest private forestry owner, has increased its focus on consumer hygiene products, enabling it to skirt the epidemic that’s gripped much of the Nordic paper industry. In January it agreed to sell most of its packaging operations to DS Smith Plc (SMDS) for 1.7 billion euros, a deal that closed July 2.
About 80 percent of SCA’s business is now in hygiene.
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