January 17, 2018 / 7:11 AM / a month ago

BRIEF-Skanska issues profit warning, announces restructuring actions to improve profitability

Jan 17 (Reuters) - Skanska AB:

* SKANSKA PRESENTS PRELIMINARY YEAR-END RESULTS AFTER TAKING CHARGES RELATED TO RESTRUCTURING AND PROPOSE MAINTAINED DIVIDEND

* SAYS ‍FOLLOWING A STRATEGIC REVIEW INITIATED IN FALL 2017 SKANSKA WILL UNDERTAKE A COMPREHENSIVE RESTRUCTURING TO IMPROVE PROFITABILITY​

* SAYS ‍REVIEW AND FOLLOWING CHANGES RESULT IN A CHARGE OF A TOTAL OF ABOUT SEK 1.1 BILLION IN Q4, AND ABOUT SEK 600 M IN 2018​

* SAYS ‍OPERATING INCOME FOR FULL-YEAR 2017 IS EXPECTED TO BE ABOUT SEK 5.3 BILLION CORRESPONDING TO EARNINGS PER SHARE OF SEK 12​

* SAYS ‍SKANSKA‘S BOARD OF DIRECTORS PROPOSE A MAINTAINED DIVIDEND OF SEK 8.25 PER SHARE​

* SAYS ‍IN ORDER TO IMPROVE PROFITABILITY SKANSKA WILL REDUCE SIZE OF UNPROFITABLE BUSINESS UNITS AND INCREASE FOCUS ON COST CONTROL AND RISK MANAGEMENT​

* SAYS ‍WILL ALSO MAKE A NUMBER OF ORGANIZATIONAL AND LEADERSHIP CHANGES​

* SAYS ‍DUE TO UNSATISFACTORY PERFORMANCE OF SEVERAL CONSTRUCTION UNITS SKANSKA WILL TAKE FOLLOWING ACTIONS​

* SAYS ‍RESTRUCTURE CONSTRUCTION OPERATIONS IN POLAND, LEAVE POWER SECTOR IN USA, FOCUS ON CORE BUSINESS IN UK AND CONTINUE TO ADAPT TO TOUGHER MARKET CONDITIONS IN CZECH REPUBLIC​

* SAYS ‍SKANSKA‘S NORDIC CONSTRUCTION UNITS CONTINUE TO DELIVER STRONG RESULTS​

* SAYS ‍IN RESIDENTIAL AND COMMERCIAL PROPERTY DEVELOPMENT OPPORTUNITIES AND GROWTH AMBITIONS REMAIN​

* SAYS ‍DUE TO A THIN PROJECT PIPELINE IN EUROPE INFRASTRUCTURE DEVELOPMENT WILL REDUCE ORGANIZATION AND MAINLY FOCUS ON OPPORTUNITIES IN USA​ Source text for Eikon: Further company coverage: (Stockholm Newsroom)

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