Skanska six month report, jan-jun 2001

SKANSKA SIX MONTH REPORT, JAN-JUN 2001 CONTINUED GOOD GROWTH IN ORDER BACKLOG * Order bookings rose by 71 percent to SEK 93,565 M Strong performance in Skanska's main markets. For comparable units, order bookings rose 16 percent * Order backlog rose by 72 percent to SEK 191,490 M American operations reported an order backlog exceeding SEK 100 billion * Net sales rose by 90 percent to SEK 79,383 M * Operating income of the Group's core business amounted to SEK 1,460 M (2,697) Restructuring expenses and loss provisions in projects of SEK 1,100 M adversely affected earnings. Skanska's gain on sale of properties was SEK 347 M lower than during the same period last year * Income after financial items totaled SEK 1,076 M (5,509) During the same period of last year, the divestment of non-core shareholdings or businesses added SEK 2.7 billion to Skanska's income · Operating income for the full year 2001 at about the same level as the figure for 2000 The previous estimate was that operating income in Skanska's core business would be higher than the figure for 2000 Claes Björk, President and CEO of Skanska, commented on the Six Month Report: "Our largest main markets show continued good profitability. It is also gratifying to see how well our newly acquired units in the U.S., Great Britain and the Czech Republic are performing. Polish operations provided a positive contribution to operating income for the report period but we will need another 2-3 years to take full advantage of their underlying potential. "To strengthen profitability, we have discontinued the CDK Contracting Co business in our American operations. We have also undertaken restructuring measures in our international project operations. Unfortunately during the report period we have also noted a need for loss provisions in British joint venture projects, contracted before our acquisition of Kvaerner Construction (Skanska Construction Group Ltd.). During the second quarter, SEK 400 M in such provisions were charged to earnings. A total of SEK 1,100 M in restructuring expenses and project loss provisions was thus charged to earnings during the report period. "Operating income for the full year 2001 is expected to reach about the same level as the figure for 2000 (SEK 4.4 billion). This assessment is based on a continued good order situation, as well as the good profitability potential that exists in our own project development operations and in previously acquired businesses. This full-year estimate includes an expected profit of more than SEK 2 billion (last year: SEK 1.9 billion) on project development in on-going core operations." Skanska AB Stockholm, August 30, 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/2001/08/30/20010830BIT00510/bit0002.doc The full report http://www.waymaker.net/bitonline/2001/08/30/20010830BIT00510/bit0002.pdf The full report