Skanska's nine month report

SKANSKA'S NINE MONTH REPORT                        85/98
JANUARY-SEPTEMBER 1998 

CONTINUED STRONG GROWTH IN OPERATIONS
Order bookings rose by 39 percent
Net sales rose by 27 percent
Operating income rose to SEK 3,971 M (1,913)
Income after financial items fell to SEK 4,225 M (10,969)
Skanska's internationalization is continuing:
  - 71 percent of order bookings and 66 percent of net sales outside Sweden
"Our focus on Skanska's core business - construction-related services and project development - gives result. This is shown by the strong improvement in order bookings and by the positive trend in earnings from business operations," says Claes Björk, President and CEO of Skanska, in a comment to the Group's Nine Month Report. "Our lower income after financial items is due to the fact that last year we sold the non-core shareholding in Sandvik at a gain of more than SEK 9 billion. "

"We have also maintained a high turnover rate in our real estate portfolio, and our divestments of fully developed real estate have yielded very good capital gains. Furthermore, in September the subsidiary Drott - containing 40 percent of Skanska`s real estate portfolio - was distributed to Skanska`s shareholders."

"In construction operations, the positive trend in the United States, Finland and Denmark is continuing. As for Sweden, it is heartening that building construction in Sweden is increasing, but one should recall that construction investments are at historically low levels. The continued weak construction market in Germany makes it necessary to take further steps to improve profitability for our kitchen fittings subsidiary Poggenpohl. "

"Our project development operations are benefiting from heavy demand for commercial space in the metropolitan areas that we focus on. Here I see good opportunities to increase our investments in new projects with good potential profitability. "

"Because of the current positive trend in our core business, I still expect full-year 1998 income from business operations to be higher than in 1997," Mr. Björk concludes.

Danderyd, Sweden, November 5, 1998

SKANSKA AB
Corporate Communications

For further information, please contact:
Anders Nyrén, Executive Vice President, Finance, tel. +46 8-753 86 32
Cecilia Schön, Senior Vice President, Corporate Communications, tel. +46 8-753 87 99
Staffan Schéele, Investor Relations, tel. +46 8-753 82 72
Erik von Hofsten, Investor Relations, tel. + 46 8-753 86 82

Enclosed: Skanska's Nine Month Report for January-September 1998