Peab takes massive write-down on troubled project

Swedish construction company Peab (STO: PEAB B) has been criticized for its project handling of the multi- purpose stadium constructions in Stockholm. The firm now admits that the building of the so called Stockholmsarenan (Tele2 Arena) has proven more complex than it could foresee. This has led to higher costs affecting profitability for around 300 million SEK. In addition to that, Peab is writing down 125 million on the expected profits of two commercial projects in central Oslo. The charges are taken on Q2 2012 accounts due to be published on August 21st. Peab says the completion of the Stockholm Arena with high quality and on time is a top priority.