Construction giant Skanska has tapped a new CEO for its U.S. operations, a move that comes as the company faces lackluster profits and undergoes a significant restructuring.
Richard Kennedy has been named CEO of Skanska USA and executive vice president of parent company, Skanska AB, the Sweden-based company announced on Wednesday. He previously served as president of Skanska’s USA Building unit and succeeds Anders Danielsson, who was tapped as president and CEO of Skanska AB in December. Paul Hewins, chief operating officer of Skanska’s building unit, will be taking over Kennedy’s role.
Skanska is shedding some of its less profitable businesses as part of its restructuring, which will result in layoffs of about 3,000 employees, the company said in a separate year-end report on Wednesday. The company reported that its operating profit in 2017 was $657 million, down from the $797 million projected by analysts, the Financial Times reported.
The company indicated on Wednesday that it plans to pull out of the power industry in the U.S. but will focus on other infrastructure projects. Skanska is working on a few major projects in New York City, including the redevelopment of LaGuardia Airport and Moynihan Station.