STOCKHOLM, Sweden, Feb. 14, 2002 (PRIMEZONE) -- Skanska:
Full-year 2001 results in brief, billions of Swedish kronor unless otherwise stated, with comparative figures for 2000:
-- Order bookings: SEK 152.7 bn (127.0)
-- Order backlog: SEK 158.6 bn (160.7)
-- Net sales: SEK 164.9 bn (108.0)
-- Operating income in construction-related services and project
development - the Group's core business: SEK 2.5 bn (4.4)
-- Income after financial items: SEK 1.1 bn (8.5)
-- Cash flow from operations: SEK 3.5 bn (1.3)
-- The Board proposes a regular dividend for the 2001 financial year
of SEK 3.00 (3.38) per share
Claes Bjork, President and CEO of Skanska, comments on the full-year results: "Earnings during the fourth quarter improved as expected, compared to the previous quarters of 2001. Cash flow from business operations was very strong and totaled SEK 2.5 billion in the fourth quarter. This represented an increase of 50 percent compared to the same period of 2000. We have thus also further strengthened our financial position."
"Order bookings in our American operations deteriorated sharply after the September terrorist attacks. During December 2001 and January 2002 we received about SEK 10 billion worth of contracts, so in my judgement the order situation in the U.S. has stabilized."
"We also foresee continued strong demand for fully developed commercial projects in Scandinavia. Over the past two years, we have developed and sold about SEK 10 billion worth of such projects, with capital gains totaling SEK 4 billion."
"Concurrently with the strategic review of the Group's operations that we conducted during 2001, new business plans for 2002-2004 have been drafted, with a focus on improved profitability and more effective use of capital. On the basis of these business plans, the Board decided today to introduce new financial targets that reflect our aims for the next few years."
Comments on the Fourth Quarter
The Board proposes a regular dividend of SEK 3.00 (3.38) per share. This proposal should be viewed in light of the fact that nonrecurring items were charged to 2001 earnings. The dividend proposal is within the framework of the minimum dividend level of 5-6 percent of adjusted shareholders' equity stated in Skanska's dividend policy
As expected, the market picture was very divided during the fourth quarter. Total order bookings for the fourth quarter were lower than during the preceding quarters, thereby also reducing order backlog. Many of Skanska's business units in Scandinavia and elsewhere in Europe had stable order bookings in the final quarter of 2001. The Group's businesses in Great Britain and the Czech Republic performed especially well. In the United States, Skanska USA Building and Beers Skanska - which are building construction units - reported very low order bookings in October and November. In addition, a number of contracts were postponed and were thus removed from the order backlog. During December and January, order bookings increased from a low level at these units. The trend of civil construction in the US was strong. This benefited Skanska USA Civil, which has a good market position in this sector.
During the fourth quarter, Skanska Project Development sold SEK 1,804 M worth of investment properties and projects, with a capital gain of SEK 741 M. For 2001 as a whole, the value of properties sold amounted to SEK 5 billion, or about 25 percent of the total estimated market value of the portfolio on January 1, 2001. The average new project development gain exceeded 40 percent.
The financial position of the Group strengthened during the fourth quarter. The debt/equity ratio fell from 0.6 to 0.4. This improvement was mainly due to good cash flow from business operations and a lower investment level.
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