Nine month report, January - September 2004
Comments from Skanska’s President and CEO Stuart Graham:
- Skanska’s core business performed favorably in the third quarter, with improved earnings and higher margins in Construction. Both Residential and Commercial Project Development continue to report good earnings. Order bookings were low in the third quarter but for the nine-month period they exceeded net sales by almost 8 billion.
- The outlook is generally unchanged in Skanska’s main markets. U.S. civil construction is expected to remain at a low level, but a number of large infrastructure projects in the New York area are now beginning to be put out to tender.
- Despite weak market growth over the past two years, Skanska is now well on its way to meeting the financial targets established in early 2003. During late 2004 management will develop recommendations for the Board of Directors regarding capital structure and financial targets, which are expected to be communicated in conjunction with the Year-end Report in February.
Third quarter of 2004 compared to third quarter of 2003
• Net sales decreased by 3 percent till SEK 32,389 M (33,371). Adjusted for currency rate effects, net sales were unchanged.
• Operating income amounted to SEK 2,166 M (887).
• Gain on sale of properties in Commercial Project Development amounted to SEK 617 M (172).
• Operating income from discontinued operations amounted to SEK 797 M (68).
• Income after financial items amounted to SEK 2,165 M (745).
• Net income amounted to SEK 1,603 M (519) and earnings per share in the third quarter amounted to SEK 3.83 (1.24).
Link to the complete report (requires Acrobat Reader)