Good second quarter puts Skanska on track to profits target

Swedish contractor Skanska has reported better-than-expected operating profit in its second-quarter figures, and is on track to achieve a margin of 3.4% – one of the main aims of its plan to improve the company’s performance after a disappointing 2018.

Margins in the construction division, the company’s biggest, rose to 2.9% from 0.8% a year ago.

Anders Danielsson, the company’s chief executive, said the construction sector’s performance was improving as it completed projects with low profitability in Poland and the US.

He added that a simplified structure had allowed it to focus it operations, and it was being "very selective" in its bidding process.

He added that the Swedish residential market was "slow", and the UK market was continuing to be obscured by uncertainty over Brexit.

The company’s operating profit was $289m for the second quarter, and $340m for the first half of the year.

Image: Skanska’s HallandsÃ¥s rail tunnel, Sweden’s longest (Skanska)

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