NCC Group - Interim Report January-June 2000

NCC GROUP, JANUARY-JUNE 2000: Earnings up 11 percent for comparable units - sharp rise in real estate development profit; strong order bookings in Housing * The Group's income after net financial items January-June amounted to SEK 1,073 m. (431). Income includes SEK 818 m. deriving from the repayment of surplus funds from SPP. The figure for the first half of 1999 included capital gains totaling SEK 201 m. from the sale of Neptun Maritime and the BPA shareholding. Excluding these items affecting comparability, earnings increased by 11 percent. * On a rolling 12-month basis, income after net financial items amounted to SEK 1,893 m., compared with SEK 1,251 m. for full-year 1999. Excluding items affecting comparability, earnings were in line with the figure for full-year 1999. * Earnings per share for January-June amounted to SEK 6.90 (3.00). Excluding items affecting comparability, earnings were in line with the figure for year-earlier period. * Orders received by NCC's construction operations rose by 20 percent during January-June to SEK 20,931 m. A 25-percent increase was noted during the second quarter. * An Extraordinary General Meeting will be held on September 14 to consider a proposal that the Board of Directors be authorized to repurchase up to 10 percent of the total number of shares in the Company. "Earnings for the quarter were very high as a result of the repayment of surplus funds from SPP. Adjusted for this and other items affecting comparability, earnings for the first half of the year rose by 11 percent. We noted an increase in earnings during the second quarter, with stronger margins for construction operations. It's also gratifying to note that order bookings within NCC Building are increasing and that the business area's earnings improved during the second quarter," comments Jan Sjöqvist, President and Chief Executive Officer of the NCC Group. "NCC Housing accounted for the strongest performance among the Group's construction operations, with orders received during the first half of the year rising by 56 percent and earnings more than doubling. The number of development rights has risen by 15 percent and NCC is now well positioned in the fast-growing housing market." "The market prospects for real estate development are currently very good, as reflected in the activity and earnings reported by NCC Real Estate. We have increased the tempo of the number of projects sold and completed several sales, with very good gains. NCC Real Estate's earnings rose by 30 percent during the second quarter." "The earnings of our associated company, A-Train, improved during the second quarter and the passenger trend during the summer was better than expected." Questions can be directed to: Björn Andersson, Senior Vice President - Financial and Business Control (Tel: +46-8-655 20 40, +46-70-627 65 92) or Hans-Olof Karlsson, Senior Vice President - Corporate Communications (Tel: +46-8-655 22 79, +46-70-547 12 50) or Annica Gerentz - Investors Relations (Tel: +46-8-655 22 04, +46-70-398 42 09). Appendix: Interim report for the six months ended June 30, 2000 (11 pages). NCC-GROUP: Interim Report January-June 2000 * The Group's income after net financial items amounted to SEK 1,073 m. (431). Income includes SEK 818 m. deriving from the repayment of surplus funds from SPP. The figure for the first half of 1999 included capital gains totaling SEK 201 m. from the sale of Neptun Maritime and the BPA shareholding. Excluding these items affecting comparability, earnings increased by 11 percent. * On a rolling 12-month basis, income after net financial items amounted to SEK 1,893 m., compared with SEK 1,251 m. for full-year 1999. Excluding items affecting comparability, earnings were in line with the figure for full-year 1999. * Earnings per share for January-June amounted to SEK 6.90 (3.00). Excluding items affecting comparability, earnings were in line with the figure for year-earlier period. * Orders received by NCC's construction operations rose by 20 percent during January-June to SEK 20,931 m. A 25-percent increase was noted during the second quarter. * An Extraordinary General Meeting will be held on September 14 to consider a proposal that the Board of Directors be authorized to repurchase up to 10 percent of the total number of shares in the Company. ------------------------------------------------------------ This information was brought to you by BIT http://www.bit.se The following files are available for download: http://www.bit.se/bitonline/2000/08/14/20000814BIT00560/bit0001.doc The full report http://www.bit.se/bitonline/2000/08/14/20000814BIT00560/bit0002.pdf The full report