In order to improve profitability Skanska will reduce the size of unprofitable business units and increase focus on cost control and risk management. Skanska will also make a number of organizational and leadership changes. 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’s Nordic construction units continue to deliver strong results.

In Residential and Commercial Property Development the opportunities and growth ambitions remain.

Due to a thin project pipeline in Europe Infrastructure Development will reduce the organization and mainly focus on the opportunities in the USA.

Restructuring of the construction units will result in an impairment charge totaling EUR 112M, with no cash flow impact, and a restructuring cost amounting to EUR 10M in the fourth quarter 2017.

The unsatisfactory performance in the construction stream outside the Nordics during the fourth quarter of 2017 include write-downs amounting to a total of EUR 41M, which relates to the construction operations in Skanska Poland.

After the impairment charge, restructuring cost and project write-downs, the operating income for the full year 2017 is expected to be about EUR 540M and the earnings per share SEK 12.

The restructuring process will continue this year and also encompass a review of Group Governance in order to reduce costs and increase organizational effectiveness. The charges related to these activities are estimated to be about EUR 66M in 2018, and connected to lay-offs of about 3,000 employees. Cost savings from these lay-offs are expected to amount to about EUR 102M annually.