Skanska adapts volume decline

Measures are to be taken by Skanska to adapt to an anticipated decline in activities in the Nordic area.

The measures are expected to affect 2,000 employees in Sweden and 1,400 in the remainder of the Nordic region at a cost of approximately €56 million, says the company.

In Skanska’s nine-month report for 2008, the group announced that several construction and residential development markets are weakening. A review of the current order backlog and anticipated order bookings has indicated a volume decline of about 15% in the Nordic region in 2009. The main reason is the extremely sharp decline in the residential markets, but a weakening of other building segments is also anticipated. The volume decline for Skanska in other geographic markets is expected to be significantly lower.