Annual Report 2011 - Skanska

1 5001 2009006003000Sverige Norge Finland Tjeckien Nya marknader• Startade• Sålda5 0004 0003 0002 0001 0000JM NCC Peab Skanska• StartadeSålda1) Totalt i respektive koncern.Källa: Respektive bolags Bokslutskommuniké.”201816141210864202004Skanska sold 3,193 homes and startedconstruction of 3,630 homes in 2011.200520062007−−−− BruttomarginalGenomsnittlig bruttomarginal2008200920102011Homes started and soldHomes started and sold,Nordic residential developers 1Gross margin 2004–20111,5005,000%201,2004,00018169003,00014126002,0001083001,0006420• Started• SoldSweden Norway Finland CzechRepublicNewmarkets0• Started• SoldJM NCC Peab Skanska02004 2005 2006−−−−Gross marginAverage gross margin200720082009201020111 Group total.Source: Year-end report of each respective company.Major eventsSkanska started construction on a total of 3,630 homesduring 2011. The Group took advantage of its financialstrength to acquire 7,175 new building rights worthSEK 1.7 billion.The business plan for 2011–2015 includes an expansionof residential development operations to Poland and theUnited Kingdom. In the U.K., the focus is on southwesternand southeastern England, and in Poland mainlyWarsaw. During the year, Skanska began constructionand sold its first homes in the U.K. and purchased landin Poland.RevenueRevenue in Residential Development increased by13 percent to SEK 8,550 M (7,581), and the number ofhomes sold amounted to 3,193 (3,176).EarningsOperating income totaled SEK 345 M (559). Operatingmargin was 4.0 (7.4) percent. The deterioration in theoperating margin was mainly due to cost increases incertain Swedish projects and a writedown of land inSlovakia and Estonia. In the short term, the operatingmargin was also adversely affected by investments toestablish a presence in Skanska’s new residential developmentmarkets, the U.K. and Poland. The weaker marketsituation is also leading to lengthier sales processesand fewer new project start-ups.OutlookLooking further ahead, Skanska believes that futureprospects are good, due to a structural undersupply ofhomes. This is indicated by demographic trends as wellas increased urbanization.In the short term, demand may slow because of economicworries in Europe. This may also lead to lowervolume, although the underlying need will persist.Meanwhile, uncertainty among buyers may be offsetby a lowering of economic growth forecasts, and thusof the interest rate path, resulting in more favorablehousing cost projections.Skanska foresees continued potential for improvingprofitability by making the construction processmore efficient.Skanska Annual Report 2011 Residential Development 47