Skanska Europe construction losses rise to £62m

Aaron Morby 3 months ago
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Losses at Skanska’s European construction operation, which includes the UK, Poland and Czech Republic businesses, deepened in the first half of the year to £62m from £39m in the same period in 2017.

Skanska group chief executive Anders Danielsson is focused on restoring construction profitability

Revenue at the Europe construction division edged up 5% to £1.02bn.

Skanska said the hit came primarily from further projects write downs in Poland and an ongoing cost-cutting programme.

Chief executive Anders Danielsson said the outlook for the UK commercial building market remained weak for the next 12 months.

He said: “In the UK there is still some uncertainty related to Brexit limiting investments in the non-residential building market. The civil market is stable.”

Across the Skanska group construction revenue rose 6% to around £6.5bn while operating income edged up a similar amount to £47m.

Danielson said: “The strategic initiatives to restore profitability levels in our construction stream have begun stabilising our operations in Poland but we experienced additional setbacks in the US operations, where second quarter results were far from satisfactory.

“Looking ahead, we remain highly focused on improving profitability in our construction stream.

“We are continuing the implementation of the strategic initiatives decided upon earlier in the year and having them reach full potential.”

 

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