Veidekke positioned for growth
(Thomson Reuters ONE) -
Veidekke achieved a profit of 170 MNOK and a turnover of 4.4 BNOK in the fourth
quarter. For all of 2010, net profit was 590 MNOK on turnover of 16.3 BNOK. "A
5% increase in annual revenues and a 13% improvement in earnings, combined with
a three-fold increase in housing production gives us good reason to be
optimistic going forward", says Terje R. Venold.
Veidekke's turnover in 2010 was 16 296 MNOK (15 558 MNOK in 2009). Profit before
tax was 590 MNOK (523 MNOK). Earnings per share were 2.60 NOK (3.00 NOK), and
the Board proposes a dividend of 2.50 NOK per share (2.50 NOK in 2009). The
order backlog for the Group's construction business at the end of 2010 was 12.2
BNOK (12.3 BNOK).
"We're running a strong and good business, and we've managed the economic
downturn well. Our sound financial position and order backlog means that we are
well positioned and prepared for the market growth we expect in 2011, despite
the attack on our reputation in recent days", says Venold.
Construction operations
The positive developments in the Scandinavian construction market continued in
the fourth quarter. The result was an increase in activity and good profit
margins, despite strong competition. Development was particularly positive for
non-residential buildings and housing in Norway and Sweden.
In total, construction operations' sales in the fourth quarter were 3 481 MNOK
(3 225 MNOK) with a result of 186 MNOK (223 MNOK). For all of 2010, turnover was
12 749 MNOK (12 095 MNOK) and profit was 568 MNOK (606 MNOK).
Property development
The market has shown a positive trend with an increase in home sales over the
past year. The number of housing units under production at year end was 901,
versus 310 units last year. In total, Veidekke property sold 628 homes in 2010
(430). In Denmark, where there is no property development activity, profit in
the quarter was impacted by a land bank write-down of 45 MNOK due to market
uncertainty.
Sales for Veidekke property operations in the fourth quarter totaled 303 MNOK
(227 MNOK) and the result ended at - 8.6 MNOK (-26 MNOK). For all of 2010,
turnover ended at 1 066 MNOK (711 MNOK) with a profit of 14 MNOK (- 74 MNOK).
Industry
Manufacturing activity was affected by seasonally low activity in the fourth
quarter. Focus in 2010 was on increasing profitability, which resulted in margin
improvements especially in the areas of asphalt and recycling. Asphalt
production increased by 7% in 2010 despite a severe winter with a late start and
an early end in November.
Total turnover for Veidekke Industry in the fourth quarter was 897 MNOK (755
MNOK), and the result was 7.1 MNOK (8.6 MNOK). For the year 2010, revenues
reached 3 076 MNOK (2968 MNOK) while profit was 64 MNOK (7 MNOK).
HSE
Sick leave for all employees in Norway in the fourth quarter was 5.4% (5.7%),
whereas in Sweden it was 2.8% (3.1) and in Denmark 2.2% (2.4%). The injury rate
for the entire Group (number of injuries per MNOK hours worked) ended at 4.8
(5.7) in the fourth quarter.
See also the Board's report for the fourth quarter of 2010 which is attached to
this press release.
Report Q4 2010 (html)
For more information:
President & CEO Terje R. Venold, phone + 47 21 05 77 01 /
90 58 23 23,terje.venold(at)veidekke.no
Executive Vice President /CFO Jørgen W. Porsmyr, phone+ 47 21 05 76 44 /
90 75 90 58,jorgen.wiese-porsmyr(at)veidekke.no
Executive Vice President Communication Kai Krüger Henriksen, phone +
47 21 05 77 04 / 90 51 93 60,kai.henriksen(at)veidekke.no
Veidekke is one of Scandinavia's largest contractors with 6,000 employees and a
turnover of 16.3 billion NOK (2010) Activities include building and construction
projects, residential developments, asphalt plants, gravel and aggregates, road
maintenance and recycling. Our values are professional, honest, enthusiastic and
pioneering. Our goals for health, safety and the environment, HSE, have equal
status with our financial goals. Veidekke is characterized by a decentralized
organizational model with a strong corporate culture and a high degree of
employee involvement. Over half the employees are co-owners, holding 20% of
Veidekke's shares between them. The company is listed on the Oslo Stock Exchange
and has never declared a loss since it was founded in 1936.
This information is subject of the disclosure requirements acc. to §5-12 vphl
(Norwegian Securities Trading Act)
Report Q4 2010:
http://hugin.info/172/R/1487453/422924.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#1487453]
Unternehmensinformation / Kurzprofil:
Datum: 10.02.2011 - 07:05 Uhr
Sprache: Deutsch
News-ID 51307
Anzahl Zeichen: 5563
contact information:
Town:
Oslo
Kategorie:
Business News
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