Skanska Reports Record Profits in 2020
ATLANTA (Feb. 11, 2021) — Contracting giant Skanska Group released its 2020 earnings last week, reporting a record high in profits for 2020, even during a pandemic and despite the fact that its Q4 construction revenue was significantly down. Here’s what you need to know:
- The Sweden-based, global contractor reported 2020 profits of 9.3 billion Swedish krona, or $1.1 billion USD. This was a 46% increase from 2019.
- For the fourth quarter 2020, profits were 5.1 billion krona, or a 163% increase year over year.
- Operating income increased 52%, and amounted to 11.9 billion. However, this included the divestment of the ownership stake in the Elizabeth River Crossings, which owned the Elizabeth River Tunnels in Virginia, and the sale of other commercial investments.
- Revenue for 2020 came in at 158.6 billion krona, down 10%.
- Construction revenue was 140.5 billion krona in 2020, down 12% year over year.
- Q4 revenue for construction was 34.2 billion krona, down 19%.
President and Chief Executive Officer Anders Danielsson voiced confidence in the way the company navigated the various challenges of 2020 — citing the coronavirus pandemic, global economic fluctuations, and more. Here’s his statement on the group’s construction segment:
“In construction, the performance was solid. That said, the construction stream can further improve profitability and the strategy to do so remains. In the United Kingdom, we are focusing our operations. In Central Europe we are adapting to lower volumes. In Sweden we have taken additional measures to address areas where we have struggled with the profitability during the year, and in the United States we aim for additional profitability improvements. Being selective in our bidding and focusing on commercial management remain in focus. This is increasingly important in a market, such as the U.S., where we see increased competition in the civil infrastructure market and public clients face funding uncertainties.”
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