STOCKHOLM, Sweden, Oct. 30, 2002 (PRIMEZONE) -- Skanska (Other OTC:SKSBF) (Stockholm:SKAb):
- During the first nine months of 2002, the operating income of the Skanska Group rose to SEK 1,926 M (685) and the operating margin amounted to 1.8 (0.6) percent.. During the July to September period, operating income rose to SEK 876 M (-763) and the operating margin amounted to 2.5 (neg) percent. - During the nine month report period, income after financial items rose to SEK 1,062 M (-132) for the Group. This included SEK 45 M (1,414) in capital gains on the sale of properties. During the third quarter, income after financial items climbed to SEK 670 M (-1,208). This included SEK 1 M (92) in capital gains on sale of properties. - Operating income in U.S. operations climbed 34 percent during the third quarter. Meanwhile operating income improved in the Scandinavian and European market areas. - Due to the negative trend in stock markets during the third quarter, Skanska made pension provisions of SEK -43 M (-137), which were charged to the financial items. The Group has thus made provisions totaling SEK -377 M (-137) during the year. - Cash flow from business operations increased during the third quarter to SEK 1,124 M (312). During the first nine months of 2002, cash flow amounted to SEK -105 M (1,042). - Order backlog increased to SEK 145.5 billion from SEK 143.4 billion in the second quarter. Compared to last year, the Group order backlog declined, mainly as an effect of the decrease in the American business units working in building construction. Order bookings in U.S. operations amounted to SEK 14.5 billion (15.2). - Order bookings in the U.S. thus continued to increase quarterly, compared to the earlier quarters of the year. For the entire nine month report period, U.S. order bookings amounted to SEK 41.4 billion (53.9).
Comments from the President and CEO of Skanska: "Earnings in the third quarter improved in all business units, with the exception of our South American unit Sade Skanska. Sade Skanska's profit is positive and the decline compared to last year is due to the sharp devaluation of the Argentinean peso and inflationary adjustments, not to operating problems. U.S. operations increased their earnings by 34 percent, mainly driven by an increased share of infrastructure construction in the contract mix and the fact that we completed a number of very successful projects during the third quarter.
"Commercial construction -- office and industrial premises -- is generally decreasing around the world. In our judgment, this trend will not change the next few quarters, so we expect the net sales volume to decrease," said Stuart Graham, the new President and CEO of Skanska.
"We are somewhat encouraged that we are now seeing the order bookings in our U.S. operations continue to increase, compared to the earlier quarters of the year.
"The acquisition of California-based Yeager, which was finalized in September, makes Skanska one of the few American infrastructure builders with nationwide coverage. This is of great importance to us, since the American infrastructure market is expected to offer interesting opportunities the next few years. In the Nordic markets, growth is expected to accelerate in infrastructure next year, while the greatest potential in a somewhat longer perspective is found in the Czech Republic and in Poland," Mr. Graham said.
"During the third quarter, we carried out no major property divestments. After the close of the report period, we signed a conditional agreement on divestment of the Gravlingen commercial project in downtown Stockholm at a purchase price of SEK 2.3 billion and with a capital gain of SEK 1.1 billion. This shows that our project development operations generate value-added even during more difficult economic conditions," Mr. Graham concluded. (See separate press release for more information.)
For further information, please contact:
Hans Biorck, Executive Vice President and CFO Skanska AB +46 (0)8-753 88 00 Peter Wallin, Senior Vice President, Investor Relations Skanska AB +46 (0)8-753 88 86 Peter Gimbe, Press Officer, Corporate Communications +46 (0)8-753 88 38, mobile +46 (0)70-543 88 38
This and earlier press releases are also available at www.skanska.com
Invitation to telephone conference
In conjunction with the release on Wednesday, October 30, of Skanska's results for January-September 2002, we would like to invite media and analysts to a telephone conference at CET 12:30 pm (U.K. 11:30 pm, U.S. Eastern 06:30 am) on October 30.
Skanska's President and CEO Stuart Graham and Hans Biorck, Chief Financial Officer, will at this time present the report and thereafter respond to questions. It will not be possible to attend in person at this conference.
To participate in the conference, please dial +44 20 8240 8243, no later than five minutes before the conference begins. There will be a replay facility available for five days immediately following the telephone conference by dialing +44 20 8288 4459, access code: 578452.
The Interim Report will be published around 11 am CET on the Skanska Group's website www.skanska.com.
Invitation to Press conference
Skanska's President and CEO Stuart Graham will shortly present the report and the focus of the operations in a close future on a press conference on
October 30 at CET 2:00 pm at The Restaurant on Klarabergsviadukten 63, Stockholm.
This press conference can not be followed by telephone. If you wish to participate in person, please reply no later than CET 12:00 on October 29 by email to marie.karlsson@skanska.se.
Looking forward to your participation!
Peter Wallin Senior Vice President Investor Relations
SKANSKA NINE MONTH REPORT, JANUARY TO SEPTEMBER 2002
July to September
- Operating income in construction-related services rose to SEK 847 M (-451) and the operating margin amounted to 2.4 (neg) percent - All business units in construction-related services, with the exception of Sade Skanska, improved their operating income compared to the same period of last year - Operating income in U.S. operations rose by 34 percent - Due to the negative trend in stock markets during the third quarter, Skanska made pension provisions of SEK -43 M (-137), which were charged to net financial items - Cash flow from business operations improved substantially - Increased order bookings in Scandinavia and Europe compared to the same period last year, while order bookings in the "Other markets" segment declined significantly, resulting in an overall negative trend for the Group - Order bookings in U.S. operations amounted to SEK 14.5 billion (15.2). Order bookings continued to increase, compared to the earlier quarters of the year. On a Group basis, order bookings totaled SEK 33.7 billion (37.3). Compared to the second quarter of 2002, order bookings declined by 14 percent. - As a result of the overall decline in commercial construction investments in most of our main markets, we expect the Group's net sales volume to decrease - During the third quarter, Skanska carried out no major property divestments. After the close of the report period, it signed a conditional agreement on divestment of the Gravlingen project, at a purchase price of SEK 2,326 M and a capital gain of about SEK 1,150 M
This information was brought to you by Waymaker http://www.waymaker.net
The following files are available for download:
www.waymaker.net/bitonline/2002/10/30/20021030BIT00560/wkr0001.doc Hela Rapporten www.waymaker.net/bitonline/2002/10/30/20021030BIT00560/wkr0002.doc Press release www.waymaker.net/bitonline/2002/10/30/20021030BIT00560/wkr0003.pdf Hela Rapporten