STOCKHOLM, Sweden, July 11, 2003 (PRIMEZONE) -- In October of 2002, Beers Skanska was merged into Skanska USA Building to create long term operating efficiency and enhance marketing to national accounts.
When senior management of Beers Skanska left the company in April 2003, Skanska USA Building launched an extensive review of each of Beers Skanska's 700 on-going and completed but not closed projects. The reevaluation results in write-downs on some 40 projects either completed at year-end 2002 or to be completed in 2003. The write-downs amounts to USD 31 M (SEK 260 M) and will be charged to operating income in Skanska USA Building in the second quarter.
These write-downs stem from much more conservative appraisal of recovery on change orders, receivable collections and subcontractor costs. Skanska Group's controllers and our external auditors, KPMG, have confirmed that the charge is in keeping within Skanska standards and Swedish GAAP.
Skanska USA Building had net sales of SEK 42.7 billion (USD 4.4 billion) and an operating income of SEK 539 M (USD 55 M) in year 2002.
Further comments on earnings and market outlook will be provided in conjunction with the second quarter interim report that will be released on July 24, 2003 at 12.00 CET (11.00 GMT).
On Friday July 11 at 13:00 CET (12:00 GMT), Stuart Graham, CEO and President, and Hans Biorck, CFO, will host a telephone conference regarding the write-downs. To participate in the conference, please dial +44 (0)20 7162 0187 no later than five minutes prior to the start of the conference.
If you are unable to participate, there will be a replay facility available for five days immediately following the teleconference. The number to dial is +44 (0)20 8288 4459, access code: 479302.
For further information please contact:
Peter Wallin, Senior Vice President, Investor Relations, Skanska AB, tel +46 8 753 88 86
Peter Gimbe, Press Officer, Skanska AB, tel +46 8 753 88 38
This and previous releases can also be found at www.skanska.com
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The following files are available for download:
http://www.waymaker.net/bitonline/2003/07/11/20030711BIT00030/wkr0001.doc
http://www.waymaker.net/bitonline/2003/07/11/20030711BIT00030/wkr0002.pdf