Skanska is to cut 3,000 jobs and carry out a major restructure following difficulties in its European business.
In a trading update today the Swedish firm said it expected to reach SEK 5.3bn (£487M) in operating income for 2017, £261M less than the same period for 2016. More than £90M was spent on restructuring costs and charges.
Outside its Nordic business, which Skansa said had performed well, there had been a “thin project pipeline” in its European infrastructure sector.
The firm said it would restructure its Polish construction business after its poor performance led to project write downs of around £36M for the fourth quarter of 2017.
“We are continuing to work on improving performance across the UK operations and focusing on our core business is fully aligned with that strategy. As with all businesses, we maintain our headcount in line with our expectations for the business,” said a Skanska UK spokesperson.
“Our order backlog in the UK remains robust, supported by a strong balance sheet and there is minimal impact to Skanska of Carillion’s situation.”
The restructure is expected to cost around £54M in 2018, but job cuts are expected to save £90M annually. A new chief finance officer, Magnus Persson, has been appointed as part of the restructure.
In July last year Skanska issued a profit warning and made a write down of £30M, days after Carillion revealed its own profit warning and £845M write down.