Strong first half for Skanska

Skanska has posted increases in order bookings and backlog for the first half of this year, up to June 30, 2014.

The Sweden-based contractor saw order bookings in construction total SEK 70.4 billion (€7.63 billion), up from SEK 60.3 billion (€6.53 billion) for the first half of 2013. Adjusted for currency effects, the firm said order bookings increased by +16%.

Skanska’s order backlog also swelled, achieving SEK 155.4 billion (€16.8 billion), up from SEK 145.7 billion (€15.8 billion) at the end of the first quarter 2014. Adjusted for currency effects, the order backlog increased by +4%.

However, operating income dropped -22%, to SEK 1.6 billion (€175 million), down from SEK 2 billion (€215 million) in 2013. This included writedowns and restructuring provisions in the Latin American operations of SEK 500 million (€54 million) in the second quarter.

Revenue was also marginally down, at SEK 62.4 billion (€6.76 billion), -1% on 2013’s figure of SEK 62.8 billion (€6.8 billion).