Swedish construction group Skanska AB on Thursday reported that its operating cash flow stalled in the third quarter, a sharp drop from the same period a year ago.
Operating cash flow from operations was zero, compared with 6.2 billion Swedish Kronor a year earlier, the company said.
Skanska attributed the decline to net investments in its operations of 1.3 billion Kronor, a reversal from net divestments of 1.4 billion Kronor in the comparable period.
Despite the cash flow slump, operating income rose to 1.4 billion Kronor from 1.3 billion Kronor, while revenue increased to 43.7 billion Kronor from 42.8 billion Kronor.
The company's core construction business performed well, with its operating margin improving to 4.2% from 3.6%.
However, the project development division reported an operating loss of 0.3 billion Kronor, which included property asset impairment charges of 0.7 billion Kronor amid weak property markets.
Order bookings in construction fell 17% to 39.9 billion Kronor from what the company described as a strong comparable quarter.
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