Skanska posts small profit dip, construction orders climb

Credit: REUTERS/Kacper Pempel

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STOCKHOLM, Feb 3 (Reuters) - Swedish builder Skanska SKAb.ST reported a marginal fall in operating earnings for the fourth quarter on Friday and said the backlog of orders in its key construction arm remained at historically high levels.

The Nordic region's largest builder, and one of the biggest in the United States, reported an operating profit of 3.53 billion Swedish crowns ($339.8 million) in the quarter, down from 3.63 billion a year earlier.

Skanska has seen sharp slide in activity in residential and commericial property development in recent quarters as a soaring inflation and a string of hefty interest rate hikes has begun weighing heavily on households and businesses.

Its construction business, which accounts for the brunt of group revenues, has seen far stronger development than its property development arms and order bookings in the quarter rose to 51.6 billion crowns from a year-ago 42.3 billion.

($1 = 10.3894 Swedish crowns)

(Reporting by Niklas Pollard, editing by Anna Ringstrom)


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