The operating income in the third quarter 2018 for Skanska Group is about SEK 0.5 billion (1.5), including write downs and impairment charges in the U.S. totaling SEK 1.3 billion
Skanska makes project write downs of SEK 0.9 billion related to the construction phase of two ongoing PPP-projects in the U.S. The project write downs are caused by additional cost overruns due to low production rates and delays. Skanska also takes a goodwill impairment charge of SEK 0.4 billion, with no cash flow impact, in the third quarter associated with the process of exiting the U.S. power sector.
After the write downs and impairment charge, the operating income in the third quarter 2018 for the Skanska Group is expected to be about SEK 0.5 billion (1.5). Attached appendix includes additional preliminary financial statements.
Going forward the implications for Skanska’s strategy in the U.S. will be to:
- Stop bidding for mega design-build PPP projects
- Stop bidding for Engineering, Procurement and Construction (EPC) projects
- Explore divesting the operations in the power sector
- Close down the project development function of Infrastructure Development
A telephone conference will be held at 8:00 am (CET), tomorrow Friday October 19. During the conference call, Skanska´s President and CEO Anders Danielsson and CFO Magnus Persson will describe the situation and respond to questions.
To participate in the telephone conference, with the possibility to ask questions, please dial +46 8 505 564 74, or +44 203 364 5374, or +1 855 753 2230.
The complete and final Nine Month Report 2018 will be presented on November 8, 2018.
Appendix including additional preliminary financial statements in the attached file.
Contact:
André Löfgren, Senior Vice President Investor Relations, Skanska AB, tel +46 (0)10 448 13 63
This and previous releases can also be found at www.skanska.com.
In the USA, Skanska is specializing in building construction, civil infrastructure and commercial property developments in select US markets. Skanska USA had sales of SEK 59 billion in 2017 and has approximately 9,500 employees.
Skanska is one of the world’s leading construction and project development companies, focused on selected home markets in the Nordic region, Europe and USA. Supported by global trends in urbanization and demographics, and by being at the forefront in sustainability, Skanska offers competitive solutions for both simple and the most complex assignments, helping to build a sustainable future for customers and communities. The Group has about 40,000 employees. Skanska's sales in 2017 totaled SEK 161 billion.
The information provided herein is such as Skanska AB is obligated to disclose pursuant to the EU market securities act (EU) no. 596/2014.