Skanska Nine Month Report January-september 2001

SKANSKA NINE MONTH REPORT JANUARY-september 2001 Economic downturn affects Skanska · Order bookings rose by 51 percent to SEK 130,909 M Greater uncertainty in the world economy adversely affected order bookings during the third quarter of 2001 · Order backlog rose by 37 percent to SEK 183,553 M Order backlog is equivalent to more than one year of sales · Net sales rose by 74 percent to SEK 122,384 M · Operating income in construction-related services and project development - the Group's core business - amounted to SEK 695 M (3,492) In the third quarter, writedowns and loss provisions of SEK 2.0 billion are being charged to operating income. During the report period, capital gains on the sale of properties were SEK 435 M lower than in January- September 2000 · Income after financial items totaled SEK -132 M (6,449) In the comparable period of 2000, the effects of gains on the sale of non-core shareholdings and businesses totaled SEK 3.0 billion · Changed full-year forecast: Operating income in the Group's core business is expected to total about SEK 2.0 billion. Income after financial items is expected to total about SEK 0.7 billion The full-year forecast for operating income in core business has been adjusted downward by about SEK 2.4 billion, compared to the forecast issued in the Six Month Report. The forecast of operating income includes expected gains of SEK 2.2 billion on the sale of properties Claes Björk, President and CEO of Skanska, commented on the Nine Month Report: "We are experiencing a slowdown in the growth of private sector investments, related to both commercial space and housing. The pace of this slowdown varies between different markets and sectors. The Polish market has exhibited the sharpest downturn; this is clearest in the housing sector. To position Skanska to respond to the new economic situation in the world, we have therefore found it necessary to write down the value of residential project development and to make certain loss provisions. Our strong order backlog, combined with the underlying value of our project development portfolio, is a good base for the Group's continued growth in a medium-term perspective. At present, the long-term effects are impossible to predict." Skanska AB Stockholm, October 31, 2001 For further information, please contact: Hans Biörck, Executive Vice President and CFO, +46 (0)8 - 753 88 00 Peter Wallin, Senior Vice President, Investor Relations, +46 (0)8 - 753 88 00 ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2001/10/31/20011031BIT00530/bit0001.doc The full report http://www.waymaker.net/bitonline/2001/10/31/20011031BIT00530/bit0001.pdf The full report