Swedish giant says operating income down two-thirds last year

Skanska said operating profit fell two-thirds last year after the firm ran up losses at its residential and commercial property development arms.

The construction business posted an operating profit of SEK5.6bn (拢423m) on turnover of SEK161bn (拢12.2bn).

But both residential and commercial property fell into the red and chief executive Anders Danielsson said: 鈥淔or our property businesses, Commercial Property Development, Residential Development and Investment Properties, the continued weakness in the property markets has led to challenges when assessing the value of property assets.

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Skanska said it expected the UK building and civils markets to get weaker in the coming year

鈥淎fter a thorough analysis, impairment charges and changes in fair market values were made to ensure that the recognised values reflect our best current assessment of the underlying value of our property assets.鈥�

The charges meant group operating income fell 65% to SEK3.2bn (拢242m).

In its 2023 results, the Swedish giant said group revenue stood at SEK157bn (拢11.9bn) which was lower than construction鈥檚 revenue because of central costs being taken out.

Skanska also said that it expected the building and civils markets in the UK to get weaker over the next 12 months.

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