Skanska’s result shows strong growth and major increase in earnings
Skanska’s result för the first nine month of 1999 is characterized by strong growth and major increase in earnings. Income after financial items rose to SEK 5,622 M (4,042) and operating income rose to SEK 5,611 M (3,523). The operating margin in construction operations rose to 2.5 percent (1.7). Core business improved considerably - order bookings rose by 11 percent to SEK 65,062 M (58,564) and net sales rose by 34 percent to SEK 56,839 M (42,396).
“We have strong sales growth, at the same time as the earnings trend in current operations is very good,” says Skanska’s President and CEO Claes Björk in a comment to the Group’s Nine Month Report.
“During the rest of 1999, we anticipate a continued positive income trend in our business operations consistent with the outcome for the first nine months.”, said Claes Björk.
PRESS RELEASE, NOVEMBER 4, 1999 92/99
SKANSKA - NINE MONTH REPORT, 1999
STRONG GROWTH AND MAJOR INCREASE IN EARNINGS
- Order bookings rose by 11 percent to SEK 65,062 M (58,564)
- Net sales rose by 34 percent to SEK 56,839 M (42,396)
- Operating income rose to SEK 5,611 M (3,523)
- Income after financial items rose to SEK 5,622 M (4,042)
- Gross income from business operations nearly doubled to
SEK 1,517 M (835) - Operating margin in construction operations rose to 2.5 percent (1.7)
- Net investments in project development increased to
SEK 2,066 M (-479)"We have strong sales growth, at the same time as the earnings trend in current operations is very good," says Skanska's President and CEO Claes Björk in a comment to the Group's Nine Month Report.
"Our construction operations are not only showing strong growth, but also improved operating margins. Taken together, of course, this has a very good effect on our profit-generating capacity.
"Project development, as well as real estate operations, are still being stimulated by strong demand for housing, offices and commercial space. Our ongoing office and commercial space projects have a total projected book value after completion of more than SEK 3 billion. Given an expected yield of 11 percent, these projects should have substantial surplus value to be realized over time.
"Our business concept is, of course, to continuously realize the value generated in our projects, but the scale of divestments varies from one period to another. So far in 1999, Skanska's divestments of fully developed projects have been below the year-ago level, but given the current strong market, there should be good potential to carry out further transactions.
"During the rest of 1999, we anticipate a continued positive income trend in our business operations consistent with the outcome for the first nine months."
Stockholm, November 4, 1999
Skanska AB
Group CommunicationFor additional information, contact:
Staffan Schéle, Investor Relations tel +46 8 753 82 72
Erik von Hofsten, Investor Relations tel +46 8 753 86 82Attached: Skanska's interim report for January-September 1999