But Swedish firm’s sales outlook weak for the UK business
Sales in Skanska’s UK business recovered in the three months to September, with sales of £318m (3.4bn Swedish Kronor), up 13% on the previous quarter.
The performance means the last three months have recorded the best UK sales of the year to date. In total, Skanska said revenues for the first nine months of the year were down 6% on the same period last year, at £860m (9.2bn SEK).
Profit over the three months since July was down on the previous quarter, but 2% higher than the same period last year. Overall profit for the first nine months of the year are up 10% at £30m (321m SEK).
However, Skanska said the outlook for all of its major UK markets – housing construction, other construction, civil engineering and residential development – was weakening, with residential development weakening faster than previously thought.
Overall Skanska, which is based in Sweden, reported global profit down to 3.2bn SK for the first nine months of the year, from 3.3bn in the same period last year, with its construction profit margin reducing to 2.9%. Construction revenues overall rose 11% to 90.3bn SEK.