Skanska - three month report, January - March, 1999
"One quarter is too short a period to draw any far-reaching conclusions, but on the whole I nevertheless think that the trend is very positive, both in our construction operations and in proj-ect development," says Skanska CEO Claes Björk in a comment to the interim report.
SKANSKA - THREE MONTH REPORT, JANUARY - MARCH, 1999
- Net sales rose by 27 percent to SEK 15,488 M (12,171)
- the increase for comparable units was 19 percent - Operating income rose to SEK 734 M (673)
- including gain on sale of properties of SEK 210 M (493) - Strong increase in earnings at Skanska USA
- operating income rose to SEK 158 M (63) - Project development operations expanded
- strong demand for commercial space - Further internationalization through acquisitions
- Agreement concerning sale of shares in Scancem (see separate re-lease)
"One quarter is too short a period to draw any far-reaching conclusions, but on the whole I nevertheless think that the trend is very positive, both in our construction operations and in proj-ect development," says Skanska CEO Claes Björk in a comment to the interim report.
"Our net sales rose by 27 percent and income from operations also improved. Order bookings remained at a high level. For comparable units, order backlog was 28 percent higher than at the end of the same period last year. In construction operations, income and margins rose signifi-cantly at Skanska USA and Skanska Sweden's building construction business also performed very well.
"Demand for commercial space is still very strong and our investments in project develop-ment increased further during the period. More than 80 percent of the space is pre-leased. Based on an estimated yield of more than 9 percent, we expect a very good return on current proj-ects.
"Through the acquisitions of SADE and, after the close of the report period, Karl Steiner, we are now establishing Skanska Group operations in two attractive new markets. Both of these companies have very good growth potential and they also contribute valuable expertise to the Group.
"The agreement that we have now signed concerning the sale of our Scancem shares is a good deal for us and also gives a good industrial solution. I am also very pleased that the other share-holders in Scancem will be offered to sell their shares at their same price.
"On the whole, the market outlook is relatively favorable in most of our main markets and we expect a continued positive income trend in our operations for the rest of the year."
Stockholm May 3, 1999
Skanska AB
Group Communications
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