Information prior to the six month report for 1999
Early in the second quarter of 1999, Skanska signed a binding agreement concerning the sale of all of the Group's shares in the international building materials group Scancem to the German-based Heidelberger Zement. In keeping with the accounting principles that Skanska applies, Scancem is treated in the financial statements as an associated company until the divestment date, that is, until the date when a binding sales agreement existed.
Information prior to the six month report for 1999
Impact on Skanska's financial statements of divestment of shares in Scancem
Early in the second quarter of 1999, Skanska signed a binding agreement concerning the sale of all of the Group's shares in the international building materials group Scancem to the German-based Heidelberger Zement. In keeping with the accounting principles that Skanska applies, Scancem is treated in the financial statements as an associated company until the divestment date, that is, until the date when a binding sales agreement existed.
In Skanska's six month report for January - June 1999, the net effect on earnings connected to its holding in Scancem and to the share divestment, respectively, totaled SEK 2,640 M, as follows (SEK M):
The operating income of Skanska for the first half of 1999 includes a share of Scancem's income after financial items up to the divestment date. This is reported under the item "Share of income in associated companies" and (net after taxes) correspondingly increased the book value of the Scancem shares in the Group's consolidated financial statements.
The capital gain from the divestment of Skanska's shares in Scancem, calculated as the difference between sales proceeds (after subtracting transaction costs) and book value in the consolidated financial statements, is reported under the heading "Items affecting comparability."
Scancem paid its dividend to shareholders after the divestment date and this dividend is thus included in the Skanska Group's income for the period.
Skanska received the sale proceeds on July 26, 1999, that is, after the close of the accounting period. This is reported in the consolidated balance sheet on June 30, 1999 as a receivable of about SEK 8.5 billion.
Consolidation of acquired companies
In keeping with the changed application of accounting principles concerning consolidation of acquired companies and deconsolidation of divested companies (see press release dated June 15, 1999), companies acquired by Skanska during the first half of 1999 are consolidated effective from the beginning of the period specified below:
| SADE | 1st quarter |
| Parquets Marty S.A. | 1st quarter |
| Gottlieb Group | 2st quarter |
| Alex J. Etkin Inc. | 2st quarter |
Comparative figures concerning companies and operations acquired during 1998 will be adjusted to reflect this change. This adjustment reduces the net sales for the period but does not have any impact on the earnings reported.
Stockholm, July 17, 1999
SKANSKA AB
Group Communication
For additional information, contact:
Staffan Schéle, Investor Relations, tel +46 8-753 82 72
Erik von Hofsten, Investor Relations, tel +46 8-753 86 82