KVAERNER'S CONTRACTING division returned to profit in the year to 30 June despite a general downturn in the group's overall performance, according to results published last week.
Construction made an operating profit of NKr50M (pounds4M) compared to a loss of pounds3.1M, while turnover increased from pounds353.4M to pounds481.6M.
The contractor also said it was poised to win the pounds150M Addington section of the Channel Tunnel Rail Link.
Kvaerner confirmed its reorganisation which has created a new Engineering & Con
struction business (News last week). According to construction chief executive Keith Clarke, the reorganisation has improved capability for winning and delivering lump sum turnkey projects.
The Kvaerner group inherited an adversarial, profit-centred business culture when it acquired the diverse Trafalgar House construction empire in 1996. Last year the group - which includes pulp and paper manufacturing, oil and gas and shipbuilding - saw pre-tax profits plummet from pounds67.7M to pounds21.45M on turnover up from pounds2.66bn to pounds3.54bn.
Clarke said ending competition between profit centres should enable the division to improve overall profitability.
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