The group鈥檚 US operation also took hits on a number of projects

Skanska

Skanska鈥檚 European construction business, including its UK arm, has lost 拢61m (SEK712m) this year.

In its interim report for the second quarter the Swedish firm revealed its European business had lost more money in the first six months of this year than in the same period in 2017 where it lost 拢39m (SEK451m).

The US construction operation also lost SEK172m (拢14m) between April and June but turned a profit of SEK222m (拢19m) over the full six months.

But a strong performance by its Nordic construction operation saw the group鈥檚 global contracting business turn a profit of SEK541m (拢46.5m) as a whole for the first six months of the year. Skanska made SEK1.03bn (拢88m) through construction in the Nordic countries.

The firm said "the divestment of the PPP-investment in the A1 motorway in Poland and project write-downs in the US and the UK construction operations impacted operating income significantly鈥�.

Skanska said it expected the non-residential market in the UK to be weak for the next 12 months.

It said: "In the UK there is still some uncertainty related to Brexit limiting investments in the non-residential building market".

The group鈥檚 construction business turned over SEK75bn (拢6.5bn) in the first half of the year.

Earlier this month it was revealed that profit had fallen at Skanska鈥檚 UK arm for the second year running thanks to a series of loss-making jobs.

The firm, which is coming to the end of its contract to build the 拢500m Scalpel tower in the City of London, said pre-tax profit fell to 拢13.5m from 拢23.6m in the year to December 2017.

Income during the period was up 拢150m to 拢1.8bn thanks to a number of contract wins including a 拢142m mixed-used job at St Giles Circus in London鈥檚 West End and a 拢127m mixed-use scheme at Fenchurch Street in the City.

The profit fall means that between 2015, when Skanska posted a 拢42.1m pre-tax profit, and 2017 the firm鈥檚 profit has nosedived two thirds.

 

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