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Skanska's European arm records first quarter losses

Skanska 3to2

Skanska’s European construction business made a loss in the first quarter of this year.

The firm’s European division was in the red by £7.65M between January and March in 2019 from revenue of £565M over the period, compared with a loss of £66M in the same quarter last year.

Skanska has also downgraded 12-month forecasts for the UK non-residential building market due to investments being “limited” by Brexit uncertainty.

In addition, the amount of construction employees across the firm fell to 34,351 from 37,862 in the corresponding quarter last year.

Skanska president and chief executive Anders Danielsson said: “In construction, the improvement in profitability that we started to see by the end of last year is continuing.

“We expect the recovery to be gradual over the coming years. We are executing on our strategic initiatives and completing a number of projects with low profitability and refilling the backlog with new projects.

“The profitability improvement is mainly expected to come from Poland and the USA, with continued strong performance in the Nordics.”

Last year, New Civil Engineer revealed that 125 Skanska UK employees were set to lose their jobs in a round of redundancies.

Last month, Skanksa also revealed that it expected to fall short of it 3.5% construction operating margins target for 2019 and 2020.

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