Skanska beats forecasts in third quarter

Swedish construction and public works group Skanska reported a sharp hike in third quarter sales and earnings Thursday that beat market expectations.

The company said sales rose 14 percent in the July-September period to 36.405 billion kronor ($5.7 billion) compared to the third quarter of 2006.

Analysts surveyed by SME-Direkt had foreseen sales of 35.3 billion kronor.

Net earnings shot up 54.6 percent to 1.243 billion kronor.

The group’s principal activity, construction, recorded an 11.9 percent gain in sales.

“Nearly all markets contributed to the improvement,” said chief executive Stuart Graham.

“The outlook for building construction is positive in Skanska’s main markets and especially in the Nordic markets and in Central Europe.”


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.