Veidekke ASA : Veidekke increases turnover and profitability
(Thomson Reuters ONE) -
Veidekke demonstrated strong progress in Q3: Compared to last year, we increased
turnover by 8% to NOK 5.6 billion and profit by 30% to NOK 358 million. "This is
Veidekkes best third quarter ever. Improved margins in contracting shows that
we are on the right track. We are also pleased by a great improvement in our
asphalt operations," says President and CEO Arne Giske.
Veidekke's turnover for Q3 was NOK 5.6 billion (NOK 5.2 billion in Q3 2012. The
pre-tax result was a profit of NOK 358 million (274) and the profit margin 6.4
(5.2). Earnings per share was NOK 2.0 (1.5). The group's combined order backlog
totals NOK 17.3 billion (16.2). The figures are taken from the segment accounts.
Construction
The combined turnover from construction operations in the third quarter came to
NOK 4,190 million (3,939), resulting in a profit of NOK 128 million (106). The
profit margin ended at 3.1% (2.7), while the order backlog was NOK 15,606
million (14,620).
The building and construction market in Norway is strong, and there is a high
level of activity in most segments, both for public sector and private
customers. However, there are local and market variations.
Although building activity is high in and around Oslo, the market in the
southernmost parts of Norway and to some extent central Norway presents great
challenges. There is a high level of activity and good access to projects in the
construction market. The profit margin increased to 2.9% in Q3 (2.5).
In Sweden the building and construction market is still characterised by large
geographical disparities and varying levels of activity in the different market
segments. Both turnover and profits show a small decline compared to last year,
and the profit margin was 2.5% (2.6).
The Danish contracting operation Hoffmann has a high quality project portfolio,
where the majority of projects are negotiated contracts. Turnover increased in
Q3, and the profit was 5.5% (4.6).
Property development
Veidekke's property operations saw turnover of NOK 455 million (444) with a
profit of NOK 57 million (60). Veidekke's share of homes in production was
1,375 at the end of the quarter (1,314). The sales rate for projects under
construction was 81% (80). The group's site portfolio in Norway and Sweden
comprises 13,500 units, where Veidekke's share is 10,500.
Veidekke continues to experience good demand in the housing market in both
Norway and Sweden. New project sales are increasing in Sweden, while in Norway
there are signs of stabilisation at a high level.
Industry
The turnover of industry operations totalled NOK 1,238 million (1,093), and
profits were NOK 178 million (115). The revenue increase is attributable to a
higher production volume for the asphalt operations, which reported operating
revenues that were 18% higher than in the third quarter of 2012. In addition to
high activity, improved efficiency and lower operating costs have contributed to
a high profit margin and good earnings for the quarter. The Industry order
backlog was NOK 1,700 million (1 534).
Health, safety and environment (HSE)
Injury and absence figures show a positive development with a decline in Norway,
Sweden and Denmark. The LTI rate for the Group was 4.7 (8.3) in Q3. Sickness
absence among all employees in Norway was 4% (4.6%) for Q3, compared with 3.1%
(3.5%) in Sweden and 1.4% (1.3%) in Denmark.
Please refer to the Board of Director's report for the third quarter 2013, which
is attached to this press release.
For more information please contact:
President and CEO Arne Giske, tel. +47 905 89 526, arne.giske(at)veidekke.no
Executive Vice President and CFO Terje Larsen, tel. +47 906 87 851,
terje.larsen(at)veidekke.no
Communications director Grete Ingeborg Nykkelmo, tel.
+47 913 11 000,grete.nykkelmo(at)veidekke.no
Veidekke is one of Scandinavia's leading contractors and property developers
with a turnover of NOK 20 billion (2012) and 6,300 employees. Activities include
building and construction projects, residential developments, asphalt plants,
gravel and aggregates, and road services. Our values are professional, honest,
enthusiastic and ground-breaking. Our goals for health, safety and the
environment, HSE, have equal status with our financial goals. Veidekke is
characterised by a strong corporate culture with employee involvement and co-
ownership as important cornerstones. More than half of the employees are co-
owners, holding around 20 per cent of the Group's shares between them. The
company is listed on the Oslo Stock Exchange and has always posted a profit
since it was founded in 1936.
This information is subject of the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.
Q3 report 2013:
http://hugin.info/172/R/1741150/584895.pdf
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Veidekke ASA via Thomson Reuters ONE
[HUG#1741150]
Unternehmensinformation / Kurzprofil:
Datum: 07.11.2013 - 07:00 Uhr
Sprache: Deutsch
News-ID 313696
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contact information:
Town:
Oslo
Kategorie:
Business News
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