(Oslo 7 November 2006) The group achieved operating revenues of NOK 355 million in the third quarter of 2006, a reduction of NOK 9 million (2.4 per cent) from the same period of 2005. Operating revenues totalled NOK 1 083 million for the first nine months, NOK 11 million (1.1 per cent) down from the same period of 2005. Operating profit (EBIT) for the third quarter came to NOK 52 million, an increase of 6.3 per cent. Operating profit for the first nine months was NOK 157 million, representing an increase of 9.1 per cent compared with the same period 2005.

 

The order backlog at 30 September totalled NOK 980 million. Representing a 14.5 per cent increase, this provides a good basis for future production.

 

The EBIT margin rose from 13.3 per cent in the third quarter of 2005 to 14.5 per cent in the third quarter 2006. The improvement reflects a relatively higher turnover for "Residential project developments" and "Property sales with a commitment to construction".

Profit before tax (EBT) came to NOK 44 million for the third quarter (NOK 39 million), an increase of 11.6 per cent. The corresponding figures for the first nine months were NOK 135 million and NOK 116 million, representing a growth of 16.1 per cent.

 

Cash flow from operations was NOK 18 million during the third quarter and NOK 52 million for the first nine months.

 

Order intake in the third quarter was NOK 327.1 million (NOK 343.7 million), a decline of 4.8 per cent. Based on the strong order intake in the first half 2006, sales starts are postponed in certain projects in third quarter to gain a better balance between order backlog and production capacity. Net order intake for the first nine months was NOK 1 259.4 million, seven per cent higher than the NOK 1 177.1 million in the same period of 2005.

 

"The reduction in operating revenues in the third quarter reflects displacements in certain projects as well as capacity challenges for some district office in relation to sub-contractors and in-house staffing.

In line with group policy, safety is given priority in project execution and economics over short-term top line growth", comments Lars Nilsen, CEO in Block Watne Gruppen.

"We continue to expect a good and stable market for our products during the months to come and into 2007. To ensure sensible growth in 2007, we have worked purposefully during recent months to expand our production capacity. We are accordingly maintaining our goal of operating revenues for 2006 on a par with last year's performance, combined with stronger margins and higher earnings."

 

 

 

 

For more details, see the attached interim report.

 

Lars Nilsen, president and CEO, Block Watne Gruppen ASA, tel: +47 23 24 60 00

Ketil Kvalvik, chief financial officer, Block Watne Gruppen ASA, tel: +47 23 24 60 42, +47 90 77 13 15