Stable third quarter for Skanska

Skanska’s revenues in the period from January to September 2013 increased by 4% over the same time a year earlier.

Adjusted for currency effects, its revenue for that period increased by 7% and amounted to SEK97.5 billion (€11.2 billion), up from SEK93.9 (€10.8 billion) in 2012.

The company said its order bookings in construction amounted to SEK90.8 billion (€10.4 billion), up from SEK88.1 billion (€10.1 billion) in 2012. Adjusted for currency effects, order bookings increased by 6%.

The order backlog was SEK144.9 billion (€16.6 billion) compared to SEK148.7 (€17 billion) last year, and adjusted for currency effects, the order backlog decreased by 1%, said Skanska.

Operating income was up, from SEK2.9 billion (€ 331.7 million) to SEK3.5 billion (€400.3 million). This increase was said to be attributable primarily to improved profitability in the residential development operations.

The operating margin in construction was 2.8 %, compared to 2.9% in same period in 2012.

President and CEO Johan Karlström said, “Overall, the third quarter has been stable, and in the first nine months of the year Skanska has delivered increased revenue, improved results and increased order bookings.

“Order bookings have developed particularly well in Sweden, Norway, Finland and in building construction in the US.”

He said the result of the construction business stream had been basically unchanged in the first nine months of the year, with improved profitability in the Norwegian and Finnish construction operations, and continued high profitability in the US civil operations.

“The extended market recession in the Czech Republic and Slovakia has led to a substantial reduction in our business volume,” he said. “The Czech unit has therefore been restructured and the value of assets and projects has been written down by SEK220 million (€25.2 million) in the third quarter.”