NCC Group: Report on 1998 operations

NCC GROUP:REPORT ON 1998 OPERATIONS 'Consolidated income after net financial items amounted to SEK 730 m., compared with SEK 74 m. for 1997, excluding merger costs of SEK 449 m. 'Net income for the year, after full tax, amounted to SEK 543 m. (loss:173), equal to SEK 5.00 per share (loss: 1.60). 'A dividend of SEK 2.50 (1.50) per share is proposed. 'Total orders received by construction operations rose by 11 percent to SEK 33.1 billion (29.8). Orders received by NCC's Swedish construction operations increased by 4 percent during the year to SEK 19.0 billion (18.3). 'The strategy for NCC's real estate operations has been changed, whereby project development is now the sole core real estate business, with real estate sales and management as supporting activities. The real estate portfolio will be reduced additionally during 1999. 'The value of NCC's portfolio of Swedish managed properties rose by SEK 0.5 billion during 1998, according to an independent valuation conducted in connection with NCC's participation in the Swedish Real Estate Index. This means that the year-end market value exceeded the book value of SEK 6.1 billion by approximately 6 percent. 'In February 1999, following fiscal year-end, NCC acquired the European asphalt and ballast operations of Denmark's Superfos Group, with annual sales of approximately SEK 1.9 billion. The acquired company will be merged with NCC's wholly owned subsidiary NCC Rasmussen and Schiøtz to form the largest building and civil engineering company in Denmark. The acquisition is expected to add approximately SEK 100 m. annually to NCC's earnings. ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/1999/02/24/19990224BIT00370/bit0001.doc http://www.bit.se/bitonline/1999/02/24/19990224BIT00370/bit0002.pdf