JM's New Production Recovery May Face Delays

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JM's New Production Recovery May Face Delays
Photo: Caisa Rasmussen/TT

Housing developer JM's production starts plummeted by 54 percent in the third quarter. The profit falls even more sharply. "The recovery for new production may be delayed", writes CEO Mikael Åslund in a comment.

JM reports a profit before tax of 14 million kronor for the year's third quarter. It can be compared to the profit of 71 million kronor during the corresponding quarter a year earlier.

The revenues during the quarter fell to 2.1 billion, from 2.5 billion kronor a year earlier.

The number of sold homes during the year's third quarter fell to 562, from 649 a year earlier. The number of production starts fell to 296, from 637.

The number of potential home buyers has increased, with reduced interest rates, increased net salaries and a reduced tax burden in Sweden, according to CEO Mikael Åslund.

"The geopolitical uncertainty continues to affect the customers' willingness to buy new home, but we see signs of increased activity", says Åslund in a comment in the interim report.

"A record high supply on the secondary market means, however, that the recovery for new production may be delayed", he adds.

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By TTEnglish edition by Sweden Herald, adapted for our readers

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