Dive Brief:

• Swedish construction giant Skanska reported a 50% drop in third-quarter net profit to $79 million — down from $154 million in the same period last year — largely due to a third-quarter write-down of $74 million in its U.S. construction operations.
• Skanska’s total construction orders fell from $4.3 billion in Q3 of 2014 to $3.9 billion in Q3 of 2015, with its U.S. civil unit accounting for 72% of the drop.
• Skanska attributed its U.S. construction losses to project design changes and low productivity. However, the company is hopeful that clients will reimburse them for cost increases, according to Reuters.

Dive Insight:

"Our number one priority in the U.S. construction operations is to restore profitability," Chief Executive Johan Karlstrom said. "We have and will continue to strengthen the organization. We are pursuing and expecting reimbursement for the cost increases driven by client design changes."

Skanska is optimistic about its prospects in the U.S. civil construction market, despite increased competition. "There are many large U.S. companies, and European companies especially from southern Europe, which, due to the slowdown seen in the European market, focus hard on the United States," Karlstrom told Reuters.

In the meantime, Skanska announced management changes in its U.S. commercial development and building divisions. Shawn Hurley will take over as business unit president for Skanska USA Commercial Development, and Mats Johansson will serve as co-chief operating officer for Skanska USA Building.

Skanska keeps sending mixed signals as to whether or not the U.S. is a viable business market for the company. Last month, Skanska announced plans to expand its office development operations in the U.S.. But the firm has also seen its share of difficulties.

Skanska was in the spotlight in June for a high-profile split with Apple midway through construction on the tech giant's new "spaceship" headquarters in Cupertino, CA. And earlier this month, news broke that Bayonne, NJ’s "Raise the Roadway" bridge project, on which Skanska is a JV partner, is two years behind schedule and over budget. Skanska also has a major role in the maximum bid contract for Boston’s Green Line extension, which has been criticized as driving up the costs on that project by $1 billion.