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Skanska Net Profit Quadrupled

Published fredag 17 februari 2006 kl 10.48

Swedish construction giant Skanska AB announced that its fourth-quarter net profit more than quadrupled, mainly because of large one-time costs in the comparable quarter of 2004.

The Stockholm-based company posted a net profit of  US$137.9 million in the October-December period. Revenue came to US$4.2 billion.

Skanska said the market for commercial building construction in the U.S. has picked up momentum.

The new federal program for infrastructure as well as a general improvement in the economy will have a positive impact during 2006.

However, Skanska added that rising costs of fuel as well as for certain types of materials add a degree of volatility to the market, since it both affects the ability of customers to finance projects as well as the project risk for contractors.

The outlook for commercial building construction in the Nordic countries remains cautiously positive where the retail sector is among the strongest, it said.

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