Weather
Dive Brief:
- First-quarter revenue for Swedish contractor and designer Skanska was reported at 434 million Swedish Krona ($42.4 million), a decrease of 86% from the previous three-month period and a decrease of 71% from the same period in 2022.
- Revenue for the first quarter of 2023 was recorded at 434 million Swedish Krona ($42.4 million), down 86% from the prior three-month period and 71% from the same period in 2022 by Swedish contractor and designer Skanska.
- Persson attributed the company’s success to a lacklustre property development market in the Nordic countries of Denmark, Sweden, Finland, Iceland, and Norway, while reiterating his firm’s optimism in the commercial and civil construction markets, particularly in the United States.
Dive Insight:
According to Persson, a key demographic for Skanska, low-income people have found it difficult to secure home loans as a result of the Nordic region’s economic downturn.
“The market of this particular section of the property market has basically vanished practically throughout the quarter,” Persson said. Since we can’t afford to pay for the repairs till we start making money again.
Persson has claimed that the professional can weather the storm despite the loss in revenues and that he is not worried about the long-term effects of the recession.
“We are not in a position where we will need to put properties to the marketplace in order to preempt a liquidity circumstance or anything like that,” he said.
Civil outlook
According to Persson, an important demographic for Skanska, the economic slump in the Nordic area has made it harder for low-income people to acquire house loans.
Throughout the quarter, “the market of this particular segment of the property market has basically vanished,” Persson added. We can’t pay for the maintenance until we start producing money again.
According to Persson, professionals are resilient enough to endure the revenue drop and the recession won’t have lasting impacts.
Currently, “we are not in a position where we will need to put properties to the marketplace in order to preempt a liquidity circumstance or anything like that,” he added.