Skanska Reports Fall in Net Profit

Swedish Construction Company Skanska AB reported Thursday that net profit for the third quarter fell 17 percent, hampered by weaker sales and higher administrative expenses.

The Stockholm-based company said net profit fell to US$111 million, or US$0.26 per share.

The report fell short of analyst expectations, and Skanska shares fell 4.8 percent to US$17.12 on the Stockholm bourse.

Separately, Skanska announced it had been selected to design and build a hospital in Walsall, Britain, in a deal it expected to be worth about US$320 million.

Order bookings for the third quarter fell 22 percent to US$3.97 billion, despite several large U.S. contracts, including two deals to help build the new Yankee Stadium in New York.

Skanska also said its unit in Britain and Poland are continuing to show ”stable margins” while its U.S. units are continuing to improve earnings.