NCC vinstvarnar – Today’s Industry

Construction company, NCC is forced to vinstvarna. A review of the Norwegian operations, forcing significant write-downs.

Construction has gone through its Norwegian building and civil engineering which ends up in impairment losses of 290 million in the third quarter.

Now, the NCC expects that operating profit for the third quarter, to 503, which can be compared with the 720 M for the same period of the previous year. Analysts had expected an operating profit of 708 Million.

the Group’s turnover is expected to amount to 13.6 billion and order bookings to sek 12.6 billion. This was the analysts ‘ snittprognos 13.3 billion, respectively, of 9.7 billion, according to SME direkt.

The Norwegian construction and anläggningsverksamhen accounts for over 11 percent of NCC’s sales. The new management of the business area has fingranskat the business and seen that the lack of project management are forcing write-downs.

It is primarily about the projects that are completed and delivered.

"I can confirm that our turnaround in Norway is taking longer than expected, but now that we have the right organization and processes in place. We have also added resources in order to improve the control of the project in Norway. In addition, there is a review of the group’s operating expenses," commented ceo Peter Wågström in a press release.