Swedish construction firm Skanska sees orders slump
Swedish construction and public works group Skanska reported slightly higher earnings for its second quarter but said its order bookings had declined sharply.
By Agencies |
STOCKHOLM: Swedish construction and public works group Skanska reported slightly higher earnings for its second quarter on Thursday but said its order bookings had declined sharply.
For the April to June period, Skanska posted a net profit of 1.07 billion kronor (113.5 million euros, 177 million dollars) up from 1.02 billion kronor for the year-ago quarter.
The company's sales for the quarter also grew 4.5 per cent to 37.1 billion kronor from 35.4 billion a year earlier.
But as housing markets slow down around the world, the company saw its order bookings plunge 14 per cent to 34.2 billion kronor in the quarter compared to a year earlier.
"Uncertainty in the market has had only a limited impact on Skanska's operations," Skanska chief executive Johan Karlstroem said in the earnings statement.
He acknowledged however that the company's order bookings in Nordic residential construction had taken a hard hit, and said there were signs that the building construction market in Northern Europe and Britain would slow going forward.
"However, Skanska is well equipped to meet a tougher market due to our good geographic dispersion, a wide mix of operations and a strong order backlog," he insisted.
For the April to June period, Skanska posted a net profit of 1.07 billion kronor (113.5 million euros, 177 million dollars) up from 1.02 billion kronor for the year-ago quarter.
The company's sales for the quarter also grew 4.5 per cent to 37.1 billion kronor from 35.4 billion a year earlier.
But as housing markets slow down around the world, the company saw its order bookings plunge 14 per cent to 34.2 billion kronor in the quarter compared to a year earlier.
"Uncertainty in the market has had only a limited impact on Skanska's operations," Skanska chief executive Johan Karlstroem said in the earnings statement.
He acknowledged however that the company's order bookings in Nordic residential construction had taken a hard hit, and said there were signs that the building construction market in Northern Europe and Britain would slow going forward.
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"However, Skanska is well equipped to meet a tougher market due to our good geographic dispersion, a wide mix of operations and a strong order backlog," he insisted.
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