Increased activity and good results for Veidekke
(Thomson Reuters ONE) -
Veidekke's sales increased by 9% in the second quarter compared with last year.
The order backlog has increased by 14% so far this year. "The highlights of the
results are good development in the housing market, margin pressure in
construction operations in Norway, margin improvements in Sweden, and a gain on
the sale of Veidekke Recycling. All in all, this is Veidekke's best second-
quarter results ever," says Terje R. Venold of Veidekke.
Veidekke's turnover in the second quarter was 4 634 MNOK (4 327 MNOK in 2010).
Profit before tax was 390 MNOK (163 MNOK). Earnings per share for the quarter
were NOK 2.40 (NOK 0.90). The order backlog for the Group's construction
operations is now at NOK 13.9 billion (12.3 billion NOK) (Figures are taken from
the segment accounts).
Construction operations
The positive developments in the Scandinavian construction market continued in
the second quarter enabling Veidekke to increase its order backlog by 8% during
the quarter. The Norwegian operations continue to be impacted by margin pressure
as well as the impairment of a major project. In Sweden, turnover rose by 30%
and earnings improved by 3.2%. Sales for overall construction operations were
3,672 MNOK (3,294 MNOK) in the second quarter with earnings of 73 MNOK (110
MNOK).
Property development
In the housing market, the positive trend from 2010 continued, especially in the
major cities. For Veidekke, this resulted in a marked increase in activity and
profits. In addition, Veidekke benefited from a positive earnings effect of 133
MNOK from the acquisition of Bouwfonds (NL) shares in Bouwfonds Veidekke AB. The
number of homes under production at the end of the quarter was
1 158 (614), and in all, Veidekke Property sold 178 housing units during the
second quarter (159). Revenues for Veidekke Property totalled 377 MNOK (306
MNOK) in the second quarter and profit was 177 MNOK (13 MNOK).
Industry
The total turnover for Veidekke Industry in the second quarter was 827 MNOK (849
MNOK) with earnings of 161 MNOK (48 MNOK). The sale of Veidekke Recycling was
completed in June, generating a positive earnings effect 109 MNOK. For asphalt
operations, turnover and earnings were down slightly, but the decrease was
offset by operations in crushed stone and gravel, and road maintenance.
HSE
Sick leave for all employees in Norway in the second quarter was 5.7% (5.5%),
while in Sweden it was 3.6% (3.1%) and in Denmark 2.1% (2.5%). The injury rate
for the entire group (number of lost-time injuries per million hours worked) was
5.7 (5.4) in the second quarter.
See also the Board's report for the second quarter of 2011, attached to this
press release.
Report Q2 2011
For more information:
President & CEO Terje R. Venold
phone + 47 21 05 77 01 / +47 90 58 23 23, terje.venold(at)veidekke.no
Executive Vice President /CFO Jørgen W. Porsmyr
phone+ 47 21 05 76 44 / +47 90 75 90 58, jorgen.wiese-porsmyr(at)veidekke.no
Executive Vice President Communication Kai Krüger Henriksen
phone + 47 21 05 77 04 / +47 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 Q2 2011:
http://hugin.info/172/R/1537654/469438.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#1537654]
Unternehmensinformation / Kurzprofil:
Datum: 11.08.2011 - 06:56 Uhr
Sprache: Deutsch
News-ID 57134
Anzahl Zeichen: 5100
contact information:
Town:
Oslo
Kategorie:
Business News
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