ANNUAL REPORT 2004 - Skanska

Trollåsen in Askim outside Gothenburg consists of 25 freestanding,
individually owned single family homes that Skanska
developed and built. Buyers appreciate both the design
and location of the homes, most of them featuring wooded
lots and sea views.
Fleischer Brygge in Moss, Norge consists of 63 apartments of
varying sizes. The three buildings in the residential development
were each configured in a U shape that gives all the
apartments a sea view. Residents have garage spaces in the
basement and their own park outside the buildings.
The Kartanonkoski neighborhood in Vantaa outside Helsinki
is expanding. The area includes both apartments and
attached houses, which together form a garden suburb.
Among the distinctive features of the neighborhood are
facades in bright, varied colors and proximity to services.
Markets
Sweden
SEK M 2004 2003
Net sales 2,046 2,109
Operating income 137 –15
Operating margin, % 6.7 0.7
Capital employed 537 561
Return on capital employed, % 25.9 –1.6
The housing market was strong during 2004.
Aside from low interest rates, one explanation
is several years of very low residential
construction volume. During 2004 there
were a total of some 28,500 housing starts in
Sweden, a figure that is expected to rise during
2005. Operating income rose sharply.
During the year, Skanska halved its inventory
of completed unsold housing units.
Norway
SEK M 2004 2003
Net sales 1,234 1,024
Operating income 122 83
Operating margin, % 9.9 8.1
Capital employed 741 823
Return on capital employed, % 14.7 8.9
During 2004, there were about 30,000 housing
starts in Norway. No increase is expected
during 2005. Interest rates are very low and
are expected to stay that way in 2005. The
trend of earnings was very good.
Skanska had a stable level of about 90
percent pre-sold housing units during construction.
Finland
SEK M 2004 2003
Net sales 1,609 1,441
Operating income 146 65
Operating margin, % 9.1 4.5
Capital employed 666 719
Return on capital employed, % 23.4 8.9
The housing market in Finland has
remained stable at a high level for a number
of years. A total of 30,000-35,000 housing
starts occurred in 2004. The number of
completed, unsold units increased during
the year and operating income improved.
Land prices rose sharply during 2004, a
trend that now seems to have stopped.
16 Residential Project Development business stream – Skanska Annual Report 2004