Veidekke: A good result in a demanding market
(Thomson Reuters ONE) - Veidekke achieved a profit of MNOK 205 and a turnover of BNOK 4.2 inthe second quarter of the year.- The financial crisis has made its mark, but we are pleased that wehave managed to maintain good margins, and that we now have astrengthened order backlog. This does not mean that the economicdownturn is over, but we are seeing progress in several areas. We areparticularly pleased with the increase in sales of housing, saysPresident and CEO of Veidekke ASA, Terje R. Venold.Veidekke's turnover in the second quarter reached MNOK 4,186 (MNOK5,581). The consolidated operating profit amounted to MNOK 180 (MNOK266) and the profit margin was 4.9 (5.1), while earnings before taxtotalled MNOK 205 (MNOK 285), giving earnings per share of NOK 1.20(NOK 1.50). The orders-on-hand for the Group's constructionoperations amount to BNOK 10.8 (BNOK 12.6).- Good margins, but lower activity is a fair summary of Veidekke'ssecond quarter of 2009. In the private sector, the building market isstill weak, but this is to some extent offset by a high level ofactivity in the construction market, states Mr. Venold. - Even thoughthese are demanding times, there are fortunately some bright spots:We have sold 114 housing units in Norway and Sweden this quarter, asagainst 127 in all of 2008. And the order backlog of constructionoperations is once again growing, after seven quarters of decline,concludes Mr. Venold.Construction operationsConstruction operations in Norway continued to maintain goodoperational management and high project margins throughout the secondquarter. In spite of a substantial decrease in turnover, the divisionmanaged to keep up a strong profit margin. Stockholm also upheld goodoperational management and profit margins, while the results for theother Swedish regions reflect a low level of incoming orders in thepreceding quarters. Our Danish operations, Hoffmann, showed apositive profit trend, despite a tough market situation.The total turnover for construction operations amounted to MNOK 3,088(MNOK 4,377), giving a profit of MNOK 140 (MNOK 212).Property developmentDuring the last few months, we have seen a gradual improvement in theproperty market, and the sale of completed dwellings has picked up,especially in the areas around Oslo and Stockholm. During the secondquarter, Veidekke sold 63 housing units in Norway, as against 41 inthe whole of 2008. The corresponding numbers for Sweden are 51 solddwellings, compared with 86 in all of 2008.Veidekke's property development operations had a turnover of MNOK 236(MNOK 387) in the second quarter, and achieved a profit of MNOK 2.5(MNOK 13.9).IndustryThe second quarter was characterised by a high level of activitywithin all our industrial business areas, and demand showed asignificantly more positive trend than in the first quarter. Volumesfor asphalt and crushed stone and gravel were on a level with 2008,and a high level of production and good exploitation of resources hascontributed positively to the results. A similar development was seenin recycling.The total turnover for Veidekke Industri (industry) was MNOK 876(MNOK 982), and the profit amounted to MNOK 64 (MNOK 68).HSESickness absence for all employees in Norway was 5.5 per cent (5.3per cent). For all employees in Sweden, sickness absence was 2.8 percent (3.2 per cent), and the equivalent numbers for Denmark were 2.1per cent (2.8 per cent). The injury rate (lost-time injuries permillion hours worked) for the whole Group ended up at 4.3 (6.1) forthe second quarter.We also refer to the Board of Directors' report for the secondquarter of 2009, which is enclosed with this press release.For further information, please contact:Terje R. Venold, President & CEO, Tel. 21 05 77 01 / 90 58 23 23terje.venold(at)veidekke.noJørgen W. Porsmyr, Executive Vice President/CFO, Tel. 21 05 76 44 /90 75 90 58jorgen.wiese-porsmyr(at)veidekke.noKai Krüger Henriksen, Executive Vice President Communication, Tel. 2105 77 04 / 90 51 93 60 kai.henriksen(at)veidekke.noVEIDEKKE ASAVeidekke ASA is a leading Scandinavian building contractor andproperty developer with 6,250 employees and an annual turnover ofBNOK 19.4 (2008). Veidekke is listed on the Oslo Stock Exchange. Ithas a wide group of shareholders and 18 per cent of the shares areheld by the company's employees. The company's activities cover alarge range of building and construction contracts, development ofhousing and commercial projects for private and public customers,asphalt operations and road maintenance, and collection and recyclingof waste.http://hugin.info/172/R/1334361/316774.pdfThis announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.
Datum: 13.08.2009 - 08:00 Uhr
Sprache: Deutsch
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