Company Trend Analysis - Write-Downs Mar Otherwise Moderate Skanska Performance - AUG 2017

BMI Research: Skanska will focus on rebounding from the w rite downs and cost overruns that have continue d to plague the company in key markets like the United States and the Un ited Kingdom over H117 . More broadly, strong projected growth in key markets like Sweden will offer Skanska the opportunity to grow its order book further, with a particular emphasis on PPPs .

Skanska's performance in H117 was relatively mixed, with a 6% growth in revenue a result of cost overruns and write-downs in the company's UK and US business units. Issues with operational efficiency in the first half of 2017 mirror those in 2015, when the company grappled with similar write-downs, and obscures a broadly positive growth outlook for Skanska going forward. In the long-term, we continue to believe that Skanska remains well placed to capitalise on favourable growth trends in key markets, which should lead to increased contract opportunities for the company.

US Market Still Most Important

US Remains Most Important Market
Revenue By Geographic Region, SEKmn
Source: Skanska, BMI

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