STOCKHOLM, Sweden, April 25, 2002 (PRIMEZONE) -- Skanska:
Skanska Group reports improved earningsThe first quarter in brief
- Order bookings SEK 30.6 billion (49.0)
- Order backlog SEK 153.6 billion (185.6)
- Net sales SEK 33.0 billion (34.8)
- Operating income in construction-related services and project
development, the Group's core business, SEK 234 M (-307)
- Income after financial items SEK 112 M (-445)
Claes Bjork, President and CEO of Skanska, commented on the quarterly outcome: "We can note that our earnings for the report period were higher than the year-earlier period, but we are not satisfied with our profitability for the quarter."
"With respect to construction, it is gratifying that both earnings and operating margins improved in our largest markets, the United States and Europe outside Scandinavia. On the other hand, we can see a slowdown in Scandinavia.
"As far as our property development activity is concerned, demand for well-situated commercial projects with a high occupancy level remains good. We currently have the equivalent of 191,000 sq. m (2.06 million sq. ft.) of commercial space under development, with a pre-leasing level of 89 percent, which should provide good selling opportunities during the year."
"The Group's order bookings during the first quarter were lower than in the corresponding period of last year, when order bookings were exceptionally high."
"Compared to the fourth quarter of 2001, Group order bookings rose by 42 percent to SEK 30.6 billion from SEK 21.6 billion. This is explained, above all, by the stabilized market situation in the U.S. However, contracts that were postponed in our American operations during the fourth quarter will have a negative impact on Group net sales for the full year 2002. In our judgment Skanska's U.S. business will nevertheless maintain a higher margin level than last year.
"Disbursements of sums previously allocated for project loss provisions, restructuring measures and taxes, as well as settlement of liabilities to suppliers, adversely affected the Group's cash flow during the report period."
Skanska AB
Stockholm, April 25, 2002
For further information, please contact: Hans Biorck, Executive Vice President and CFO, +46 (0)8 - 753 88 00 Peter Wallin, Senior Vice President, Investor Relations, +46 (0)8 - 753 88 00
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