Worse than expected for Skanska – Private Businesses

Orders received totaled 53.9 billion in the quarter, compared with the expected 53.5 billion.

SME forecasts and Skanska’s revenue and earnings stated according to the company’s segment reporting.

the uncertainty before and after Brexit has so far had no direct impact on Skanska’s construction business in the UK. It writes Johan Karlström, CEO of the construction company’s half-year report.

“However, we continue to have a close dialogue with our customers, particularly in the construction sector where the potential for negative impact is greatest. If we look at our development globally is possible the turmoil in the UK can cause investors to turn to other markets, “he writes on.

in the short term, he maintains that the uncertainty can lead to growth negatively affected. Thereby, continued low interest rates favor the valuation of our development, raises Johan Karlström up.

The profitability of Skanska’s construction business was negatively affected by the weak performance of some projects in Poland, where a shift in the market from small and medium-sized projects to large projects takes place, according to Johan Karlström.

“This is driven in part by delays in the allocation of earmarked EU subsidies, and we will adapt ourselves then,” he writes in the report.

he also emphasizes that the profitability of the US Civil “continues to be affected by the previous design changes”, when Skanska “not yet reached some significant agreements”.

“the intensive discussions continue and we have achieved progress in some projects, but without greater impact on earnings. Profitability was affected more by lower income and, as previously announced, the increased costs, “he writes well.

Britain showed a weak order intake in the first half. Order Bookings “is as always uneven and our good insight into potential orders bookings means that we can have a positive view of the balance of the year,” writes Johan Karlström.