Skanska Releases Q2 Profit Results

Swedish construction firm Skanska posted its 2020 second quarter results, and like many in the industry, felt the effects of the ongoing global pandemic. Here are the high points: 

• Revenue decreased 5%, totaling SEK 76.7 billion (USD $8.75 billion).
• The company reported an operating profit of SEK 3.7 billion (USD $407 million) during the first 6 months of 2020, benefitting from a strong first quarter. 
• However, the firm reported a Q2 operating profit of SEK 845 million (USD $95.4 million)—a decrease of 69% year over year. 
• The company’s construction segment accounted for 40% of its operating income. 

“In construction, revenue is to some extent negatively impacted by disruptions due to the pandemic, especially in the United Kingdom, United States and Central Europe. Despite this, the underlying profitability remains solid in the stream, thanks to strong execution and cost control. Order bookings have also been impacted negatively, in many cases due to postponed decisions by clients,” said President and Chief Executive Officer Anders Danielsson. 

Moving forward, Danielsson said the firm will be selective about its bidding and maintain a focus on improving commercial management.