Skanska says Latam charge to hit profit
STOCKHOLM (Reuters) - Swedish builder Skanska (SKAb.ST) said it expected full-year operating profit at its construction unit to be 3.2-3.4 billion crowns ($492-523 million) following writedowns in Latin America in the fourth quarter totaling 500 million.
In the first nine months of the year, profit at the construction unit, which accounts for the bulk of Skanska's business, was 2.9 billion crowns.
Skanska shares were down 3.8 percent at 3.11 a.m. ET on Friday.
The 500 million crown charge related to writedowns in one ongoing project and two completed projects, it said.
"In the ongoing infrastructure project, unexpected ground conditions and utility issues have lead to substantially higher costs," the company said.
"With regard to the now completed projects with fixed price contracts, the project scope changed during the production period, which leads to substantial increases in the cost to complete the projects on schedule."
($1 = 6.5066 Swedish crowns)
(Reporting by Anna Ringstrom; Editing by Dan Lalor)
- NOAA employee charged with stealing U.S. dam information
- Special Report: Traffickers use abductions, prison ships to feed Asian slave trade
- Hong Kong protesters march after fruitless talks with government
- Sweden gets two new sightings, as hunt for undersea intruder goes on
- U.S. to funnel travelers from Ebola-hit region through five airports