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Press release published at The Swedish Wire
In connection with a review of our project portfolio in preparation for Peab's half-year report three major project write-downs are considered necessary.
Construction of Stockholmsarenan (Tele2 Arena) has proven to be more complex than was possible to foresee at the time the construction contract was signed. This has led to delays and higher costs that, in total, are expected to amount to SEK 300 million.
Now that two commercial projects in central Oslo, both commissioned in 2010, are nearing completion it has become apparent that they will not be as profitable as previously expected. The final cost forecasts for both projects will be written down in total by SEK 125 million.
The entire amount of the project write-downs above will charge the second quarter of 2012. Peab's half-year report will be published on 21 August.
"Stockholmsarenan is a challenging, very complex project. We have one more year of production and we maintain a continuous dialogue with our customer and subcontractors on how the project is developing. All focus is on completing the project in time with a high level of quality," says Jan Johansson, President and CEO of Peab.
For further information, please contact:
Jesper Göransson, CFO Peab +46 733 371013
Fredrik Wahrolén, CIO Peab +46 733 371007
Peab AB discloses the information provided herein pursuant to the Securities Markets Act and/or the Financial Instruments Trading Act.
The information was submitted for publication at 08 am on 10 July 2012.
Peab is the Nordic Community Builder with some 15,000 employees and more than SEK 40 billion in net sales. The Group's subsidiaries have strategically located offices in Sweden, Norway and Finland. The share is listed on NASDAQ OMX Stockholm. The registered office of the Group is at Förslöv, Skåne in south of Sweden.
This information was distributed by Cision