Skanska Reports a 29% Decrease in Profits in Q3, Still Beating Expectations

NATIONAL—Skanska released a ninth-month report recording results from January through September 2020. The Swedish construction firm reported a decline in third-quarter profits of 29%, a number which beat earlier analyst expectations for the quarter. The company recorded an operating profit of $174.3 million, or 1.53 billion Swedish krona. Profitability in nonresidential construction increased 3% compared to a 2.8% growth from the same time last year. However, revenue was down 16% from Q3 2019. Here’s some of the other highlights from the report: 

• Highlights according to segment reporting Revenue decreased 9 percent and amounted to SEK 114.6 billion (125.4); adjusted for currency effects revenue decreased 8%.
• Operating income decreased 2% and amounted to SEK 5.3 billion (5.4); adjusted for currency effects operating income decreased 1%.
• Earnings per share decreased 6% and amounted to SEK 10.09 (10.75).
• Operating cash flow from operations amounted to SEK 4.9 billion (–4.5), according to IFRS.
• Adjusted interest-bearing net receivables(+)/net debt(–) totaled SEK 8.0 billion (June 30, 2020: 6.8), according to IFRS.
• Order bookings in construction amounted to SEK 110.0 billion (96.8); adjusted for currency effects order bookings increased 15 %. The order backlog amounted to SEK 182.9 billion (June 30, 2020: 189.0).
• Operating income in construction amounted to SEK 2.4 billion (2.7).
• Operating margin in construction was 2.3%.
• Operating income in project development amounted to SEK 3.3 billion (2.8).
• Return on capital employed in project development was 11% (10.6).
• Return on equity was 17.8% (21.6).