STOCKHOLM, Sweden, July 6, 2005 (PRIMEZONE) -- Skanska has identified the need to make a thorough restructuring of the equipment fleet of Yeager Skanska. A significant part of the current fleet is old and repairs and maintenance costs of the equipment fleet have exceeded estimations. This has also had a negative effect on productivity resulting in reduced margins in Yeager's ongoing projects.
The cost for restructuring the equipment fleet and for write-downs in certain projects amounts to USD 32 M (SEK 250 M). The poor profitability in Yeager Skanska combined with the restructuring cost has also resulted in the need to write down the remaining goodwill in Yeager Skanska, amounting to USD 14 M (SEK 110 M).
In total, the write-downs amount to USD 46 M (SEK 360 M) and will be charged to operating income in the business unit Skanska USA Civil in the second quarter.
"The poor condition of the equipment fleet is the major cause to the problems in Yeager Skanska. We will now implement a replacement program for the fleet, which we believe will help get Yeager back to profitability," says Stuart Graham, President and CEO of Skanska.
Yeager Skanska is the California-based unit within Skanska USA Civil.
Skanska USA Civil's operations focus on transportation infrastructure, and facilities for power generation, water and wastewater treatment in the eastern U.S., Colorado and California. The company has 4,400 employees. Skanska USA Civil's sales amounted to approximately SEK 12 billion in 2004.
This and previous releases can also be found at www.skanska.com
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