Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  NASDAQ OMX STOCKHOLM  >  Skanska    SKA B   SE0000113250

SKANSKA

(SKA B)
  Report  
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsOfficial PublicationsSector newsAnalyst Recommendations

Skanska : shares drop as Swedish builder's second-quarter profit hit by U.S. writedowns

share with twitter share with LinkedIn share with facebook
share via e-mail
0
07/20/2018 | 04:37am EDT
FILE PHOTO - A logo of the construction firm Skanska is seen at a construction site in the centre of Warsaw

STOCKHOLM (Reuters) - Shares in Skanska slid on Friday after the Swedish builder reported an unexpected drop in second-quarter profit due to new project writedowns at its struggling U.S. construction business.

Operating profit at the Nordic region's biggest builder, and one of the largest in the United States, fell 11 percent to 1.29 billion crowns ($145.1 million), the third quarterly fall in a row. Analysts polled by Reuters forecast a 5 percent rise.

Skanska's shares tumbled on the news dropping as much as 7.5 percent, and taking the fall in the past 12 months to 20 percent. The stock was down 5.5 percent by 0822 GMT.

The company said its construction division, which books the bulk of group sales and which has made large writedowns in the United States and Poland in recent quarters, booked additional writedowns at its U.S. business of about 520 million crowns for cost overruns in a civil construction project.

"The strategic initiatives to restore profitability levels in our construction stream have begun stabilising our operations in Poland but we experienced additional setbacks in the U.S. operations, where second quarter results were far from satisfactory," CEO Anders Danielsson said in a statement.

Danielsson told Reuters the writedown was related to a project that had been running several years.

"We're cleaning out. This is down to a low production pace, and also design changes that are resulting in delays. We have made assumptions for this project once upon a time that we haven't managed to live up to," he said.

Danielsson, a company veteran who became CEO in January, kicked off with a shake-up of the management team and the launch of a restructuring programme to boost the construction unit's profitability in several markets, mainly in Poland.

Danielsson said the measures were proceeding to plan and he saw no need to expand the programme. But he said the business was not yet "out of the woods", particularly in Poland.

Asked if Skanska had so far in the third quarter identified any projects where writedowns might be needed, he said the company had not uncovered such cases "to any larger extent".

The Construction division achieved an operating margin of 1.4 percent in the quarter, against 0.3 percent a year ago and a negative margin in the first quarter.

Order intake at the unit fell to 39.1 billion crowns from 46.3 billion, reflecting a strategy to bid for fewer but higher-margin projects as it focuses on profitability.

At Skanska's higher-margin property development business, which has been increasing its contribution to group profit to account for more than half, operating profits at the residential and commercial development segments shrank in the quarter.

(Reporting by Anna Ringstrom; editing by Niklas Pollard)

By Anna Ringstrom

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on SKANSKA
06/20SKANSKA : Engineering, the possibility to make a difference
PU
06/20SKANSKA : to build commercial office building in the City of London for about GB..
AQ
06/20SKANSKA : sells multi-family development in Washington, D.C., USA, for approxima..
AQ
06/18SKANSKA : to build elementary school in Auburn, Washington, USA for USD 39M, SEK..
AQ
06/17SKANSKA : divests office property in Oslo, Norway for about NOK 1.3 billion, abo..
AQ
06/14SKANSKA : divests office property in Helsinki, Finland, for about EUR 135 M, abo..
AQ
06/13SKANSKA : sells the office property Juvelen in Uppsala, Sweden, for about SEK 56..
AQ
06/13SKANSKA : invests in land in Prague, Czech Republic, for EUR 19.5 M, about SEK 2..
AQ
06/12SKANSKA : signs contract for Emergency Department Expansion and Renovation in Bo..
AQ
06/12SKANSKA : to construct new canopy and other improvements at airport in Massachus..
AQ
More news
Financials (SEK)
Sales 2019 165 B
EBIT 2019 5 896 M
Net income 2019 4 834 M
Finance 2019 2 764 M
Yield 2019 4,40%
P/E ratio 2019 14,19
P/E ratio 2020 12,64
EV / Sales 2019 0,38x
EV / Sales 2020 0,38x
Capitalization 65 708 M
Chart SKANSKA
Duration : Period :
Skanska Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends SKANSKA
Short TermMid-TermLong Term
TrendsBullishNeutralNeutral
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus HOLD
Number of Analysts 8
Average target price 165  SEK
Spread / Average Target 0,66%
EPS Revisions
Managers
NameTitle
Anders Danielsson President & Chief Executive Officer
Hans Torsten Gunnar Biörck Chairman
Magnus Persson Chief Financial Officer
Jaroslaw Urbanczyk Senior Vice President-Information Technology
Lena Charlotte Strömberg Independent Director
Sector and Competitors
1st jan.Capitalization (M$)
SKANSKA16.45%6 540
VINCI27.83%60 082
CHINA STATE CONSTRUCTION ENGINEERING CORPORATION3.33%34 222
LARSEN & TOUBRO7.20%31 619
CHINA COMMUNICATIONS CONSTRUCTION CO LTD-2.04%22 480
CHINA RAILWAY GROUP LTD-5.87%20 495