Skanska has said that its home market strategy would remain unchanged under its new business plan for 2016 to 2020, and that project development would expand.
The Swedish-based contractor’s new plan is described as including high ambitions and goals, “with the aim that Skanska should offer its shareholders the highest total return in the sector”.
It said the construction business would grow in a controlled manner in its existing home markets, and contribute both operationally and financially to the development streams, which it said was according to the existing business model.
Skanska added that its project development would grow over the next five years and contribute as much value as its construction units.
Skanska said its commercial development business would expand through increased investments, and infrastructure development would capitalise on the leverage within its business model. Residential development will remain stable in the home markets, it said.
The company’s financial targets for the 2016 to 2020 period include an operating margin in construction of at least 3.5%, and a return on investment of at least 10% for all the project development units.
In October, Skanska Group reported having suffered losses of SEK630 million (€68 million) in its US arm, effecting its third quarter figures for 2015.
At that time, the company said it still expected to record some SEK900 million (€97 million) for the third quarter despite its loss, and estimated making up to SEK6 billion (€647.2 million) for the full year of 2015.