Improvement in first quarter for Veidekke
(Thomson Reuters ONE) -
Veidekke's first quarter results show an improvement compared to the
challenging past year. "We've passed safely through the financial crisis. The
harsh winter we've endured and the demanding market we are in have taken some
toll, lowering our operating revenues by 5% versus the same quarter last year.
Today, however, we are experiencing increased activity in housing development,
and the Construction segment's orders-on-hand have increased by about 20% from
same time last year", says CEO Terje R. Venold.
Veidekke's turnover in the first quarter was MNOK 3 148 (MNOK 3 325). Operating
income was MNOK -16 (MNOK -102) while profit before tax was MNOK -14.3 (MNOK
-133.5). Orders-on-hand for the Group's Construction segment is of BNOK 12.1
(BNOK 9.9). Following the changes in the Norwegian contractual early retirement
scheme (AFP), previous year's pension allocations have been reversed, giving a
gain of MNOK 95 in the financial accounts in the first quarter.
"These are still challenging times for our industry with pressure on
construction margins. But with good prospects in the property market, the
significant lag in public investment in road and rail, as well as our Industry
segment's good contract-winning performance for this year's asphalt contracts
for the Norwegian Public Roads Administration, gives reason for optimism", says
CEO Venold.
Construction segment
A demanding market situation with overcapacity and keen price competition in
certain segments put pressure on margins and weakened results. The severe winter
has also contributed to higher costs and lower productive efficiency. Turnover
for the total segment was BNOK 2.787 (BNOK 2.942) in the first quarter and
earnings were MNOK 139 (MNOK 102). Profit margin for the quarter was 5.0%
(3.5%).
Property
The positive development from the second half of 2009 continued in the first
quarter. In Oslo and Stockholm in particular, housing sales are increasing, and
new projects are being initiated. If the trend continues, Veidekke could have up
to 1,000 apartments under production by year's end. Sales for Veidekke's
Property segment totalled MNOK 134 (MNOK 144) for the quarter while profit ended
at MNOK -11 (MNOK -38).
Industry
Industry's activities were also impacted by the harsh winter which led to lower
activity within crushed stone and gravel, and recycling. The first quarter is
seasonally characterised by low activity regardless, and the quarter is counted
as an expense quarter. Total turnover for Veidekke Industry in the first quarter
was MNOK 252 (MNOK 275), with earnings of MNOK -127 (MNOK -180).
HSE
Sickness absence for all employees in Norway was 5.6% (5.4%). For all employees
in Sweden, sickness absence was 3.1% (2.7%) and in Denmark 2.5% (2.0%). The
injury rate (number of lost time injuries per million hours worked) for the
entire group was 5.8 (4.5) at the end of the first quarter.
See also the Board's report for the first quarter of 2010 which is attached to
this press release.
For more information contact:
President & CEO Terje R. Venold, tel. +47 21 05 77 01 / +47 90 58 23 23
terje.venold(at)veidekke.no
Executive Vice President/CFO Jørgen W. Porsmyr, tel. +47 21 05 76 44 / +47
90 75 90 58
jorgen.wiese-porsmyr(at)veidekke.no
Communications Director Kai Krüger Henriksen, tel. +47 21 05 77 04 / +47
90 51 93 60,
kai.henriksen(at)veidekke.no
See also
http://www.veidekke.com/reports/2010/quarter/1/veidekke_in_1_quarter_2010/
VEIDEKKE ASA
Veidekke ASA is a leading Scandinavian building contractor and property
developer with 6,000 employees and turnover of NOK 15.6 billion (2009). The
group is listed on the Oslo Stock Exchange and has a dispersed ownership
structure with the employees owning 19.3 % of the stock. The business spans a
wide spectrum of building and construction projects, developing housing and
commercial buildings for private and public sector clients, asphalt plants and
road maintenance as well as collecting and recycling waste.
This information is subject of the disclosure requirements acc. to §5-12 vphl
(Norwegian Securities Trading Act)
[HUG#1412425]
Report Q1 2010: http://hugin.info/172/R/1412425/364688.pdf
Unternehmensinformation / Kurzprofil:
Datum: 06.05.2010 - 08:05 Uhr
Sprache: Deutsch
News-ID 20372
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contact information:
Town:
Oslo
Kategorie:
Business News
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