Skanska profits lower than expected

Swedish construction giant Skanska has reported pre-tax profits of 1.09 billion kronor for the third quarter, compared with 1.22 billion for the same period last year.

The results were lower than expected and shares in the company fell around 4 percent in opening trading on the Stockholm market. Analysts had on average expected pre-tax profits of 1.28 billion kronor, according to Reuters.

Turnover at the company reached 31.9 billion kronor, compared with 32.2 billion kronor in the third quarter last year.

“Our initiatives to improve the margins in the construction business stream are continuing to pay off, although order bookings are adversely affected to some extent by our selectivity,” said CEO Stuart Graham.

The company’s Swedish, Norwegian and British divisions were showing continued stable margins at good levels, Graham said. Units in the United States continue to see improved results.

House building in Sweden is showing signs of levelling off, the company reported.

“In Sweden, residential construction is increasing slowly, but the government’s proposal to eliminate the investment grant for residential rental properties is expected to have an adverse effect on growth,” the report said.


Swedish firm wins huge New York airport bid

A consortium led by Swedish construction company Skanska has been picked for a $3.6 billion (30.5 billion kronor) project to modernize New York's LaGuardia Airport, regional transport officials have announced.

Swedish firm wins huge New York airport bid
Travellers at New York's LaGuardia Airport in January 2015. Photo: TT

The contract is the largest in Skanska's history and follows the group also winning the contract to build the Metlife Stadium, where the American football teams New York Jets and New York Giants play.

The Skanska team, called LaGuardia Gateway Partners, was tapped by the Port Authority of New York and New Jersey to demolish the existing central LaGuardia terminal and build and maintain a replacement.

They beat out a competing bid by a team that included major rivals Aeroports de Paris, Goldman Sachs and the architecture firm Kohn Pedersen Fox.

Other members of the consortium are Walsh Construction, Vantage Airport Group, which manages nine airports around the world, Meridiam, Parsons Brinckerhoff, and HOK, the global architecture group.

Located in the borough of Queens, LaGuardia is one of three major airports serving the New York City region. Port Authority officials described the upgrade as necessary for New York to compete effectively with Tokyo and other global centers.

They said partners in the Skanska consortium have worked on more than 350 aviation and transport projects, including the John F. Kennedy Airport in New York and at international airports in Boston and Los Angeles.

Transport officials said the upgraded airport would replace a facility that currently suffers from overcrowding. Construction is scheduled to begin in the first quarter of 2016.

Several airlines fly between Sweden and New York, with budget carrier Norwegian launching a no-frills service in 2013.