Result of arbitration affects annual earnings by SEK 7 million
During 1995-1998, Skanska carried out construction of the structural framework for the expansion of the wastewater treatment plant Käppala, in Stockholm, under contract to the Käppalaförbundet. The contract amount was SEK 266 million, and totaled SEK 346 million including subsequent orders. In addition, Skanska was demanding SEK 82 million through arbitration, of which most referred to compensation for faulty specification drawings. The arbitration board has ruled that the drawings were not incorrect to the extent cited by Skanska. Skanska was awarded SEK 3 million of the amount demanded. (All amounts are excluding VAT.)
The arbitration amount of SEK 82 million has never been recognized as income in Skanska’s earnings. Arbitration costs amounting to SEK 10 million will be charged against the SEK 3 million income, resulting in a net expense of SEK 7 million.
Press Release
June 28, 2000 Result of arbitration affects annual earnings by SEK 7 million During 1995-1998, Skanska carried out construction of the structural framework for the expansion of the wastewater treatment plant Käppala, in Stockholm, under contract to the Käppalaförbundet. The contract amount was SEK 266 million, and totaled SEK 346 million including subsequent orders. In addition, Skanska was demanding SEK 82 million through arbitration, of which most referred to compensation for faulty specification drawings. The arbitration board has ruled that the drawings were not incorrect to the extent cited by Skanska. Skanska was awarded SEK 3 million of the amount demanded. (All amounts are excluding VAT.) The arbitration amount of SEK 82 million has never been recognized as income in Skanska’s earnings. Arbitration costs amounting to SEK 10 million will be charged against the SEK 3 million income, resulting in a net expense of SEK 7 million. ______________________________________________ For further information please contact: Peter Wallin, head of Investor Relations, Skanska AB, +46 8 753 88 86