Sweden’s largest construction and property group made an operating profit of SKr 3.07bn in 1995, 32% up on the previous year, on turnover of SKr 38.6bn.
Construction accounts for around 85% of the group’s turnover. Nearly half of this activity is outside Sweden, notably in the US and central Europe, and the drive for more international business has led the company to acquire a string of overseas construction companies during the last three years.
Income on the real estate side was up last year, reaching SKr 3.34bn, compared with SKr 3.13 in 1995. Operating profit, however, was marginally down on last year, at SKr 1.55bn, compared with SKr 1.56bn in 1994.
Skanska continues to rationalise its property portfolio and made SKr 2.15bn from disposals last year, down on the SKr 2.64bn of 1994. The yield on the property portfolio slipped from 12.3% to 11.4% last year, as the stronger European property market (notably in Sweden) brought an increase in the value of the portfolio to SKr 18.54bn (SKr 16.57bn).
The company is an active developer in central and eastern Europe: one of its largest current projects is the Atrium Business Centre in Warsaw, where it is joint developer with the city of Warsaw. The 10,000 m2 first phase is completed and let at rents of $45 per m2, while French bank Caisse des Dépôts et Consignations has come in as the lead investor for the 17,000 m2 second phase, which is expected to have an investment value of $33.5m. Skanska’s construction arm is building the scheme.
During the year the company agreed a $400m revolving credit facility with an international syndicate of banks. These long-term funds will be used to refinance existing loans abroad.
|
SKr m |
1995 |
1994 |
|
invoiced sales |
38,608 |
37,527 |
|
operating income after depreciation |
3,072 |
2,329 |
Skanska AB
International Real Estate
S-182 25 Danderyd
tel 46 8 753 8800
fax 46 8 753 8959
