Skanska's quarterly profit rises
Skanska AB reported a 54% rise in third-quarter net profit.
Stockholm construction company Skanska AB reported a 54% rise in third-quarter net profit, to 1.24 billion Swedish kronor ($195 milllion) from 801 million kronor a year earlier, as strong demand more than offset rising labor and raw-material costs. Skanska said sales rose 14% to 36.41 million kronor from 31.93 billion kronor, while its operating margin widened to 4.3% from 3.3%.
"The strong margins are the result of three years of managing risk by staying away from loss-making projects," said CEO Stuart Graham. He warned, however, that rising costs, particularly in Central Europe, will likely continue to weigh on the results. The company forecast continued strong growth at its construction business in all markets.