Global construction company Skanska has posted better results for the first three months of 2002, but they have failed to deflect criticism from the City.
Operating profit for the group, which had a UK turnover of £1.4bn, was £15.8m compared with a £21.4m loss for the same period last year. But the profit was only half that predicted by analysts, and the group reported falling turnover.

One analyst said: “After slightly improving at the end of last year, Skanska has again posted results that are disappointing.”

The group said it was continuing to be hit by difficult economic conditions and poor performance in Scandinavia. However, Claes Bjork, Skanska president and chief executive, remained bullish. He said: “With respect to construction, it is gratifying that both earnings and operating margins improved in our largest markets, the US and Europe, outside Scandinavia.”

After slightly improving at the end of last year it has again posted disappointing results

City analyst

The firm has cut more than 3500 jobs worldwide since last October and has written off at least £13m on joint-venture projects in the UK last year.