Veidekke maintained good margins in the third quarter
(Thomson Reuters ONE) - The third quarter of 2009 ended with a turnover of BNOK 4 and aprofit of MNOK 241 for the Veidekke Group. The economic downturn hasresulted in a reduction in turnover compared with the same periodlast year, but there are now more and more bright spots on thehorizon:- We increased our profit margin, the order backlog is still growingand housing sales picked up in the third quarter, says President andCEO, Terje R. Venold.Veidekke achieved a turnover for the third quarter of MNOK 3,980(MNOK 5,029). The consolidated operating profit amounted to MNOK 224(MNOK 335) and the profit margin was 6.0 (5.2), while earnings beforetax totalled MNOK 241 (MNOK 263), giving earnings per share of NOK1.30 (NOK 1.60). The orders-on-hand for the Group's constructionoperations amounted to BNOK 11.3 (BNOK 11.2).- All in all, the third quarter was positive for Veidekke'soperations seen as a whole, although we experienced a decline inturnover as a result of the ongoing recession. However, ourconstruction operations are still achieving strong margins, and theincreasing order backlog reflects yet another quarter of growth,which is of great importance for keeping up our momentum as we headinto 2010. In addition, housing sales are also showing continuedimprovement with 100 dwellings sold in Norway and Sweden thisquarter, as against 19 in the same quarter last year, adds Mr Venold.Construction operationsThe Norwegian construction operations are still the main driver inthis area. Despite the recession and a continued reduction inturnover, the operations are generally achieving excellentprofitability. Good operational management and profit margins arebeing upheld in the Stockholm region both for building andconstruction, while the results for the other Swedish regions reflecta low level of incoming orders in the preceding quarters. Our Danishoperations, Hoffmann, has managed to maintain the same level ofearnings and profit as in the second quarter, even though the marketis still weak.The total turnover for construction operations amounted to MNOK 2,840(MNOK 3,621), giving a profit of MNOK 141 (MNOK 184).Property developmentA low level of housing production is leading to weak results, whilethe sale of housing is once again improving in the Oslo and Stockholmregions, both for completed dwellings and new projects. During thethird quarter, Veidekke sold 48 housing units in Norway, as against41 in the whole of 2008. The corresponding numbers for Sweden are 52sold dwellings, compared with 86 in all of 2008.The turnover for Veidekke's property operations ended up at MNOK 105(MNOK 361), and the result was MNOK -12 (MNOK -53).IndustryThere was significant activity in the industry operations throughoutthe third quarter, with a high level of production and relativelygood profitability within asphalt, crushed stone and gravel, whereasthere was a slight decline in recycling. Allocations for futurelosses within road maintenance amounting to MNOK 34 lead to a profitreduction in comparison with 2008.The total turnover for Veidekke Industri (industry) was MNOK 1,062(MNOK 1,204), and the profit amounted to MNOK 115 (MNOK 147). Thereason for the decrease in turnover is that the demolition/plantcontracting operations have been transferred to Veidekke Entreprenør(construction).HSESickness absence for all employees in Norway was 5.8 per cent (5.5per cent). For all employees in Sweden, sickness absence was 3.0 percent (3.0 per cent), and the equivalent numbers for Denmark were 2.2per cent (2.5 per cent). The injury rate (lost-time injuries permillion hours worked) for the whole Group ended up at 4.9 (5.7) forthe third quarter.We also refer to the Board of Directors' report for the third quarterof 2009, which is enclosed with this press release.For further information, please contact:Terje R. Venold, President and CEO, Tel. 21 05 77 01 / 90 58 23 23,terje.venold(at)veidekke.noJørgen W. Porsmyr, Executive Vice President/CFO, Tel. 21 05 76 44 /90 75 90 58, jorgen.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/1352700/327381.pdfThis announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.
Datum: 05.11.2009 - 08:01 Uhr
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