Year-end Report, January-December 2008

2/6/2009 8:03 AM CET
Press release Financial reports

January-December 2008 compared to January-December 2007

- Revenue amounted to SEK 143.7 billion (138.8). In Construction, revenue rose by 8 percent adjusted for currency rate effects.

- Operating income for the Group amounted to SEK 4,086 M (5,406).

- In the fourth quarter, Skanska made writedowns and provisions of SEK 1,266 M against earnings. Of these, SEK 649 M were related to project development operations, SEK 519 M to the cost of personnel cutbacks and SEK 98 M to additional warranty provisions in operations that are being discontinued.

- Operating income in Construction decreased by 15 percent and amounted to SEK 3,761 M (4,443). Operating margin decreased to 2.7 (3.4) percent.

- In Residential Development, operating income totaled SEK -177 M (724), with an operating margin of -2.7 (9.4) percent.

- During the year, Skanska divested commercial properties worth SEK 3,537 M (2,796), with capital gains totaling SEK 1,238 M (1,080).

- Income after financial items amounted to SEK 4,410 M (5,667).

- Profit for the year totaled SEK 3,157 M (4,121) and earnings per share amounted to SEK 7.44 (9.78).

- Operating cash flow before taxes, financing activities and dividends amounted to SEK 1,422 M (9,013).

- Order bookings decreased by 12 percent and amounted to SEK 126.5 (143.4) billion. Adjusted for currency rate effects, order bookings also decreased by 12 percent.

- Order backlog totaled SEK 142.4 (146.0) billion, equivalent to 11 (14) months of construction.

- At year-end 2008, interest-bearing net receivables amounted to SEK 9.2 billion. In addition, Skanska has an unutilized long-term credit facility of SEK 8.2 billion.

- The market appraisals made at year-end indicated accrued surplus values totaling about SEK 9 billion in project development operations after writedowns.

- The Board of Directors proposes a regular dividend of SEK 5.25 (5.25) per share for the 2008 financial year. Last year Skanska also paid an extra dividend of SEK 3.00 per share.