Skanska UK takes £33m hit on projects

Aaron Morby 2 months ago
Share

Skanska has revealed a £70m raft of major project writedowns in both the UK and US in the second quarter of the year.

Gregor Craig Skanska
New UK business chief Gregor Craig is addressing project cost overruns

The UK operation, which went through a winning-streak of major projects wins in the capital as London was heating up, unveiled project writedowns of £33m.

Major project cost overruns were unveiled just two months after Skanska UK President and CEO Mike Putnam left the firm, handing over to Gregor Craig, who joined Skanska in 2003 as operations director at the London commercial building operation.

A spokesman for Skanska UK said: “The main reasons for the write downs are lower than anticipated production rates, projects being delayed with estimated penalties and multiple customer-driven changes, which have caused cost overruns.

“In these areas, we continue to have constructive dialogue with our customers to reach commercial agreement.”

“The executive management team, under the leadership of Gregor Craig is actively addressing the issues around these write downs.

“Skanska UK continues to maintain its strong balance sheet and cash position.”

Skanska revealed that it aimed to cuts overheads to reduce the impact of cost overruns on the business.

It said many of the problem projects were close to completion with others running into 2018.

Announcing trading for the second quarter, the group also revealled writedowns of nearly £40m at its US business.

Here the civil engineering operations project write downs are mainly due to not achieving estimated production rates.

To reduce organisational costs and restore profitability, the US civil operations will focus on its core geographies and product lines going forward.

After the write downs, Skanska Group’s operating income for the first six months of 2017 was expected to be around £305m (£332m)

 

Latest news

Police to quiz 336 firms in wake of Grenfell fire

Detectives comb through millions of documents and forensically examine tower in minute detail
10 hours ago

Robertson gets go-ahead for £23m Inverness Justice Centre

Contractor Robertson due to start work this autumn
8 hours ago

Lovell set for £45m Hatfield regeneration scheme

Detailed plans will be submitted early next year for homes and shops
14 hours ago

McAlpine JV wins £160m London mental health project

NHS land for 800 homes to be sold to fund Springfield and Tolworth mental health schemes
18 hours ago

Plans go in for £350m scheme in Beaconsfield

Inland Homes makes progress on 100 acre Wilton Park site
18 hours ago

Billington ramps up steelwork capacity as orders surge

New Shafton production facility to come on stream in January
18 hours ago

66 firms win places on Fusion21 £90m framework

Full list of winning consultants on latest four-year deal from procurement body
19 hours ago

Osborne bags Stockport Mersey Bridge

Phase of of £41m Stockport Interchange to start in April
19 hours ago

Plan for £60m Strathclyde Uni teaching hub

The BDP designed building is the University's largest single project spend to date
19 hours ago

Murphy sells stake in Australian infrastructure business

Cash raised will help civils specialist hit £2.5bn turnover target by 2025
1 day ago

Eric Wright warns Manchester market overheated

Lancashire builder suffers loss for second year running
2 days ago

Developer and foreman jailed after death of carpenter

Pair found guilty on manslaughter charges after fatal fall on Brighton site
2 days ago

Teesside Uni plans £300m campus expansion

Middlesbrough and Darlington campuses to be expanded in ambitious masterplan
2 days ago

£1bn London docklands scheme developer named

London & Regional Properties to redevelop Albert Island
2 days ago

Network Rail to overhaul tunnel re-lining methods

Industry called up to design faster, more efficient way to repair Victorian tunnels
2 days ago

Balfour Beatty does U-turn over support for CITB

Contractor to back skills body just weeks after broadside from boss Leo Quinn
5 days ago

Interserve appoints new finance chief

Mark Whiteling to help turnaround contractor
2 days ago

Green light for £300m Meadowhall expansion

Developer British Land aims to start construction next year
5 days ago

Bid race begins for £3.3bn roads pavement framework

Four year deal from Highways England to cover improvements across the country
5 days ago

Diamond drilling specialists join forces

Robore and Holemasters create £16m turnover contractor
5 days ago

Contractors complete Crossrail track – video

Push on to complete mega project for December 2018 opening
5 days ago

McMullen lands £18m cladding package at Shell Centre

Specialist will use latest in offsite techniques on 30-storey tower
5 days ago

Plans unveiled for £41m Edinburgh sports complex

Meadowbank sports complex will be demolished and rebuilt
5 days ago

Bouygues UK chief leaves the company

Craig Tatton leaves to "pursue another career opportunity"
6 days ago

Interserve fresh profit warning as waste job costs spiral

Glasgow energy from waste project cost to 'significantly exceed' £160m
6 days ago

Celotex recalls five insulation product lines

Grenfell PIR insulation supplier suspends sales of products after fire test
6 days ago

Contractor hunt starts for Lancaster bridge revamp

OJEU noticed published for major repair work on Greyhound Bridge
6 days ago

Betting Spy: Arsenal set to crumble again against Chelsea

Chelsea and Leicester can land a 3/1 double
5 days ago

Danger scaffold erected next to council safety office

Suspended sentence for roofing boss flouting safety laws next to council watchdogs
6 days ago

London Zoo iconic aviary £7m revamp approved

Work to start early next year on Snowdon Aviary project
6 days ago

Contractor services