Revenues fall but Skanska sees turnaround
By Chris Sleight07 May 2010
Skanska's revenues for the first quarter of the year were SEK 25,8 billion (€ 2,66 billion), a -14,2% decline on the same period last year. However, the company sounded an optimistic note, based on improved profitability and an increase in order bookings.
The company's operating profit for the year stood at SEK 920 million (€ 94,7 million), a +75% increase on the SEK 526 million achieved in the first three months of 2009. The company's order intake for the quarter was SEK 25,6 billion (€ 2,64 billion), a +6,2% rise on the SEK 24,1 billion (€ 2,48 billion) of work booked in the same period last year.
A statement from the company said, "We are now seeing the beginning of a turnaround in the trend of order bookings in construction, mainly in the Nordics. After many quarters of lower order bookings, we now have a positive trend in which order bookings are higher than revenue, both in the first quarter of 2010 and during the twelve months to March 31, 2010."
The statement went on to say that demand for construction in certain segments such as healthcare, education and other public buildings remained good. However, the company noted that demand from the private sector remained weak although enquiries were picking up.