January 17, 2018 / 7:37 AM / a year ago

Skanska warns on 2017 profit, to lay off 3,000 staff

STOCKHOLM, Jan 17 (Reuters) - Construction firm Skanska on Wednesday announced a big restructuring program including layoffs of about 3,000 staff, as it warned of a lower than expected full-year profit.

The company said it expected operating income for 2017 to be about 5.3 billion crowns ($658.04 million), while it proposed an unchanged dividend for the year of 8.25 crowns per share.

Analysts were expecting a 2017 EBIT (earnings before interest and taxes) of 6.4 billion crowns, according to Thomson Reuters I/B/E/S.

“Due to the unsatisfactory performance of several construction units Skanska will take the following actions: restructure the construction operations in Poland, leave the power sector in the USA, focus on the core business in the UK and continue to adapt to tougher market conditions in the Czech Republic,” Skanska said in a statement.

The Swedish firm said it would take a charge of about 1.1 billion crowns in the fourth quarter along with a 400 million crown writedown related to Poland, and a charge of about 600 million crowns in 2018, stemming from the proposed restructuring.

Skanska said the estimated cost savings from the layoffs are were expected to amount to about 1 billion crowns annually. ($1 = 8.0542 Swedish crowns) (Reporting by Johannes Hellstrom; Editing by Simon Johnson)

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