Veidekke ASA: High activity and good order intake in the first quarter
(Thomson Reuters ONE) -
Revenue for the first quarter totalled NOK 6.5 billion, an increase of 12%
compared with the corresponding quarter of 2016. Profit before tax for the year
increased to NOK 60 million from NOK -15 million.The Group had an order backlog
of NOK 27.4 billion at the close of the first quarter, up 12% from the beginning
of the year. Earnings per share in accordance with the segment accounts was NOK
0.4 (-0.1).
" Veidekke has continued the trend we have seen in recent quarters, with growth
in both revenue and profit in the first quarter of the year. Order intake in the
quarter was good, and the overall order situation is very satisfactory.
Construction operations have had a consistently high level of activity
throughout the quarter, but most of the profit growth comes from Property
Development," says President and CEO Arne Giske.
Veidekke's revenue in the first quarter amounted to NOK 6.5 (5.9) billion. Most
of the growth is in construction operations in Norway and Denmark and property
development operations in Sweden. Profit before tax amounted to NOK 60 (-15)
million, and the growth was primarily attributable to increased residential
production and higher project contributions from property development
operations. Earnings per share in accordance with the segment accounts was NOK
0.4 (-0.1).
The Group had an order intake of NOK 9.0 billion in the first quarter, resulting
in a total order backlog of NOK 27.4 billion at the close of the quarter.
Revenue from Veidekke's construction operations in the first quarter was NOK
5.8 (5.3) billion. This is an increase of 10% compared with the corresponding
period last year. Profit before tax amounted to NOK 125 (107) million.
Construction operations in Sweden and Denmark showed profit growth for the
quarter, while the profit from the Norwegian construction operations was weaker
than in the corresponding quarter last year.
"Construction operations had growth in both revenue and profit in the first
quarter. However, profitability remains low in parts of this business area, and
a number of measures have been implemented to improve the situation," says
Giske.
Revenue from property development operations increased to NOK 725 million from
NOK 551 million in Q1 2016. Profit before tax amounted to NOK 135 (55) million.
A total of 397 (451) residential units were sold in the quarter, including
jointly owned projects. At the end of the quarter, Veidekke had 2,393 units
under construction. The overall sales ratio for projects under construction was
91% (93%).
"Residential sales got off to a good start in 2017 and are in line with previous
quarters. The high sales ratio in the portfolio reflects the strong market and
high level of activity in both Norway and Sweden," Giske continues.
The winter half of the year is low season in the business area Industrial, and
revenue in the first quarter was NOK 477 (439) million. Profit before tax
amounted to NOK -183 (-180) million. Veidekke's industrial operations did well
in this year's competitive tendering for contracts for the Norwegian Public
Roads Administration, with higher volumes than in 2016 and winning almost half
of the state asphalt contracts.
Veidekke's total lost-time injury (LTI) rate (number of injuries per million
hours worked) was 4.2 at the close of the first quarter, down from 4.5 in the
previous quarter, but up from 3.9 in Q1 2016. Sickness absence was 4.5% (3.9%)
On 20 April an employee of one of Veidekke's subcontractors lost his life while
working on a project in Karmøy. A review team has been set up to investigate the
accident and identify the cause.
For press photos, see www.flickr.com/photos/veidekke, for more information,
contact:
President and CEO Arne Giske, tel. +47 905 89 526, arne.giske(at)veidekke.no
SVP Finance Jørgen G. Michelet, tel. +47 917 43 856, jorgen.michelet(at)veidekke.no
EVP Communications and Public Affairs Lars Erik Lund, tel. +47 413 31 369,
lars.lund(at)veidekke.no
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Veidekke is one of Scandinavia's largest construction and property development
companies. The company undertakes all types of construction and civil
engineering contracts, maintains roads and produces asphalt and aggregates. The
company is characterised by involvement and local knowledge. Revenue is NOK 30
billion, and half of the 7,400 employees own shares in the company. Veidekke is
listed on the Oslo Stock Exchange and has always posted a profit since it was
founded in 1936.
This information is subject to the disclosure requirements pursuant to section
5 -12 of the Norwegian Securities Trading Act.
Report Q1 2017:
http://hugin.info/172/R/2103695/798083.pdf
This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Veidekke ASA via GlobeNewswire
Unternehmensinformation / Kurzprofil:
Datum: 11.05.2017 - 07:02 Uhr
Sprache: Deutsch
News-ID 541727
Anzahl Zeichen: 5616
contact information:
Town:
Oslo
Kategorie:
Business News
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