Veidekke ASA: Lower sales - production remains high
Veidekke sold 187 residential units in the third quarter of 2017. The number of units in production is 3,251, with a sales ratio of 86%. Overall, Veidekke's sales of residential units amounted to NOK 900 million in Q3 2017.
Veidekke has sold fewer residential units in the third quarter than in the previous two quarters. The low sales in the quarter are due to a high sales ratio in ongoing projects, and the fact that sales on only two projects started in the period.
In the third quarter Veidekke sold 187 residential units at a value of NOK 900 million, of which Veidekke's share was NOK 660 million. The number of units in production at the end of the quarter was 3,251. Veidekkes share of units in production was 2,505. The corresponding figure for the first quarter of 2017 was 3,564, of which Veidekke's share was 2,890. The overall sales ratio for projects under construction is 86%.
"The low sales in the quarter are a result of few units for sale. The large sales volumes in the preceding quarter ensures continued high production," says CEO Arne Giske. "There is still great interest in our projects, but customers are spending somewhat longer on the buying process. This is especially noticeable in Oslo, while in Stockholm and in the other cities in Norway and Sweden the market situation is more normal," Giske concludes.
Residential unit sales figures for Veidekke as at Q3 2017:
|Home sales|| Q3 gross (1) |
| Q3 net (2) |
|12 month rotating housing sales (1)|
|Norway||72 (165)||46 (84)||538|
|Sweden||115 (152)||96 (135)||877|
|Total||187 (317)||142 (219)||1 415|
- Number of sales including joint venture projects
- Veidekke's share of sales
For more information, please contact:
Director of Business Development at Veidekke Eiendom, Audun Blegen, tel. +47 959 79 664, firstname.lastname@example.org
SVP Finance Jørgen Michelet, tel +47 917 43 856, email@example.com
Veidekke is one of Scandinavia's largest construction and property development companies. The company undertakes all types of building and civil engineering contracts, develops residential projects, maintains roads, and produces asphalt and aggregates. The company is characterised by involvement and local knowledge. Revenue is NOK 30 billion (2016), 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.