Skanska profits up in second quarter
By Steve Skinner23 July 2009
Skanska reported a second quarter operating profit of SEK 1,1 billion (€ 110 million), up +8,7% on the SEK 1 billion (€ 102 million) recorded 12 months ago. Second quarter sales of SEK 35,7 billion (€ 3,3 billion) were down -3,5% on the SEK 37 billion (€ 3,4 billion) recorded for the same period last year.
President and CEO Johan Karlström said, "The second quarter was strong, both in terms of margins and order bookings. Operating income from construction increased by some +50% on last year, and order bookings in the second quarter mirrored last year's level."
At the close of the second quarter, Skanska's order backlog decreased by -1% on that at the end of the first quarter to a total of SEK 144 billion (€ 13,5 billion), equivalent to approximately 13 months of work.
Despite the demand for building construction being weak, both in residential and other private construction, Skanska was optimistic for the future. "We can now foresee that the large government stimulus packages will have a positive impact on civil construction markets, especially in the US," said Mr Karlström.
"Housing markets in Sweden and Norway have recovered well and prices have stabilised, so we'll be starting new projects there in the second half," he said, "While in the UK, the volume of Public Private Partnerships is still significant."