Skanska profits better than expected

Building company Skanska made pre-tax profits of 1.448 billion kronor ($215.4 million) for the second quarter, down from 2 billion kronor in the same period last year. The profits still beat analysts' expectations of 1.33 billion.

Sales increased from 32.1 billion to 35.4 billion kronor. Orders were received worth a total of 40 billion kronor.

Strong demand in the sector is bringing with it capacity problems, which is leading to large increases in costs, Skanska CEO Stuart Graham wrote in the report. This in turn is making it harder to start new projects while maintaining margins, Graham addeed.

The better-than-expected results led to the companies shares opening 4 percent up in trading in Stockholm on Thursday.


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.