Skanska profits rise as construction margin improves
By Chris Sleight23 July 2010
Skanska has reported net profits for the first half of the year of SEK 2.40 billion (€ 183 million). This was a +21,5% improvement on the same period last year, and was achieved despite revenues falling -13,3% to SEK 56344 (€ 5,96 billion) for the first half of the year.
The company said that the fall in revenues was due to weak order bookings in 2008 and 2009. However, it added that the pick-up in order bookings it had seen in the first quarter of the year continued in the April to June period. As a result, Skanska's backlog stood at SEK 160 billion (€ 17,0 billion)) at the end of June, compared to SEK 144 billion (SEK 15,2 billion) at the same time last year.
Comments from Skanska's president & CEO, Johan Karlström painted an improving picture of the company's key markets. "The housing market in the Nordic countries has developed well, and out assessment is that the trend will continue to be positive for the rest of the year," he said of the residential market."
Of the non-residential market he said, "We are seeing greater interest from the market in commercial real estate investments, especially modern green properties."
However, a company statement added that cuts in public spending would probably result in a fall in public construction in the Czech Republic, UK and Slovakia. It added that uncertainty in the UK had also affected the market for public-private partnership (PPP) work."