Year-end report January - December 2004

Fourth quarter of 2004 compared to fourth quarter of 2003
# Net sales of the Skanska Group amounted to SEK 30,616 M (35,605), a decline of 14 percent. Adjusted for currency rate effects, net sales declined by 3 percent.
# Operating income amounted to SEK 101 M (1,278). The European operations showed good results. These are however overshadowed by project writedowns in the United States and the United Kingdom totaling SEK 1,095 M.

January-December 2004 compared to January-December 2003
# Net sales of the Skanska Group amounted to SEK 121,263 M (132,879), a decline of 9 percent. Adjusted for currency rate effects, net sales declined by 4 percent.
# Operating income amounted to SEK 3,853 M (4,532).

Comments from Skanska’s President and CEO Stuart Graham:
- Skanska’s core business performed favorably during the fourth quarter of 2004, with improved earnings and higher margins in a number of our construction markets. The exceptions are in Skanska USA Building and in the United Kingdom where large project writedowns unfortunately overshadow the progress achieved elsewhere in the Group.
- Full-year order bookings in the Group’s Construction operations exceeded net sales in Construction by SEK 8 billion. Both Residential and Commercial Project Development continue to report good earnings.
- Our market outlook is somewhat more favorable in Skanska’s main markets in the current year with continuing signs of recovery. U.S. civil construction is however expected to remain at a low level because of the lack of a new federal funding program for infrastructure. The residential market is strong and the number of planned housing starts is rising in many markets.