Skanska files mixed results
By Sarah Ann McCay07 February 2013
Swedish-based Skanska saw construction revenues climb 8% to SEK124.5 billion (€14.5 billion) in 2012 compared to SEK115 billion (€13.4 billion) in the previous year.
Order bookings for the financial year 2012 amounted to SEK120.1 billion (€14 billion), slightly down on 2011 bookings of SEK123.6 billion (€14.4 billion), while the firm’s order backlog also dropped to SEK146.7 billion (€17 billion) from SEK155.7 billion (€18 billion) in 2011.
Skanska achieved an operating income of SEK4.6 billion (€535 million), which excluded the sale of the Autopista Central urban highway in Santiago de Chile. The firm’s operating margin in construction was 2.8%.
Operating cash flow for the year amounted to SEK-700 million (€-81 million), but with gains seen in the fourth quarter as operating cash flow amounted to SEK3.1 billion (€360 million).
Johan Karlström, Skanska’s president and CEO, said, “As we now look back on 2012, we can agree that it was an eventful year in which we realised substantial values and created the conditions that will enable us to continue to generate new values in commercial property development and infrastructure development.”
He added, “The majority of the units in construction delivered favourable results, even in markets characterised by declining construction investments and intense competition.
"However, the performance in Latin American was weak. We have focused to improve the organisation and business model within our Norwegian and Finnish construction operations, where profitability is now gradually improving. We also implemented savings measures and a major reorganisation of our residential development operation."
He concluded, "Overall, I believe that Skanska is well positioned to meet the opportunities and risks ahead.”