Swedish builder Skanska misses Q3 profit forecast
Adds details throughout
By Agata Rybska and Anna Chaberska
Nov 6 (Reuters) -Swedish builder Skanska SKAb.ST reported third-quarter earnings below expectations on Wednesday, citing a slow property market recovery, as it recorded another set of impairment charges in its project development arm.
The Nordic region's largest builder said its operating profit rose to 1.3 billion Swedish crowns ($119.4 million) from 549 million a year earlier, but missed the 1.67 billion crowns expected by analysts polled by LSEG.
The company's construction order backlog stood at a record level in the quarter, it said.
"Activity in the property market is gradually improving, but recovery takes time," CEO Anders Danielsson said in the earnings statement.
Recovery in the sluggish housing market is progressing slowly even as the big central banks, including those of Skanska's key markets of Sweden and the U.S., have kicked off a period of rate cuts to jump-start economic growth.
Property asset impairment charges amounted to 0.3 billion crowns in the quarter.
In the same period last year, Skanska's profit was hit by 0.9 billion crowns of unexpected impairment charges after it reassessed the value of assets in its property development operations due to harsh market conditions.
While residential development saw some improvement in market activity, the low-cost housing segment BoKlok in Sweden continued to hurt profitability, Danielsson said in the statement.
In 2025 the Swedish BoKlok operations will be merged with the residential development organization and cease to exist as a separate business unit.
Order intake at Skanska's biggest construction division climbed to 50.8 billion crowns in the quarter, from 32.7 billion last year. It was up 63% from the previous quarter on a currency-adjusted basis.
($1 = 10.8907 Swedish crowns)
Reporting by Agata Rybska and Anna Chaberska in Gdansk; editing by Milla Nissi and Jan Harvey
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