Skanska posts losses in South America

Swedish-based contractor Skanska has been hit by losses of SEK500 million (€54 million) for the second quarter of 2014 in its Latin American arm, Skanska LA.

The contractor said that SEK380 million (€41 million) of the change was related to write downs in two power plant projects in Brazil and one petrochemical plant project in Argentina. All three projects will be completed before the end of the year. The remaining SEK120 million (€13 million) of the charge is related to restructuring costs.

After the charge, the operating income for the second quarter of 2014 is expected to be SEK620 million (€67 million) for the construction business stream and SEK920 million (€100 million) for the Skanska Group.

Skanska has announced that its Latin American operations will be sized down, with a focus placed on its operations and maintenance (O&M) business.

Against this background, Johan Henriksson is appointed new business unit president for Skanska LA with immediate effect.

Henriksson has been with Skanska for 20 years, and is currently the CFO for the construction unit Skanska USA Civil. Prior to that, he held the positions as CFO for Skanska Infrastructure Development and Skanska Sweden. Henriksson will report to Mats Williamson, executive vice president Skanska.