Skanska profits better than expected

Building company Skanska made pre-tax profits of 1.448 billion kronor ($215.4 million) for the second quarter, down from 2 billion kronor in the same period last year. The profits still beat analysts' expectations of 1.33 billion.

Sales increased from 32.1 billion to 35.4 billion kronor. Orders were received worth a total of 40 billion kronor.

Strong demand in the sector is bringing with it capacity problems, which is leading to large increases in costs, Skanska CEO Stuart Graham wrote in the report. This in turn is making it harder to start new projects while maintaining margins, Graham addeed.

The better-than-expected results led to the companies shares opening 4 percent up in trading in Stockholm on Thursday.