Skanska Shares Fall on Latin American Writedown: Stockholm Mover
Skanska AB (SKAB), the Nordic region’s biggest construction company, fell the most in five months in Stockholm trading after saying it will take a fourth-quarter writedown at Latin American construction operations.
The shares dropped as much as 3.9 percent, the biggest intraday decline since July 19. Skanska traded 2.8 percent lower at 107.40 kronor as of 12:42 p.m. local time.
The 500 million-kronor ($76.7 million) charge is related to costs in one ongoing project and two completed projects, Stockholm-based Skanska said today in a statement. Ground conditions and utility issues led to “substantially” higher costs in the current project. Increased costs in the completed projects are related to getting them finished on schedule after scope changes, Skanska said.
“We are now working intensively to enhance and deepen the risk management in large and complex projects in Latin America,” Skanska Chief Executive Officer Johan Karlstrom said in the statement.
Client management changes make it difficult to predict when compensation can be received for the two completed projects, Skanska said.
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