NCC Group Interim Report January-March 1999

NCC GROUP: INTERIM REPORT, JANUARY-MARCH 1999 The Group reported a loss for the period of SEK 63 m. (loss: 85) after net financial items. The corresponding pro forma figure including Superfos Construction during the preceeding year was a loss of SEK 63 m. (loss: 198). On a rolling 12-month basis, earnings amounted to SEK 752 m., compared with SEK 730 m. for full-year 1998. The corresponding pro forma figure including Superfos Construction was income of SEK 917 m., compared with SEK 782 m. for full- year 1998. The consolidated result after full tax amounted to a loss of SEK 47 m. (loss: 65), equal to a loss of SEK 0.40 per share (loss: 0.60) per share. On a rolling 12-month basis, the Group showed earnings of SEK 5.20 per share, compared with SEK 5.00 per share for full-year 1998. Total orders received by construction operations rose by 13 percent to SEK 8.1 billion (7.2). In February, following quarter-end, NCC acquired Superfos Group´s european asphalt and ballast operations, with annual sales of approximately SEK 1.7 billion. The acquired company will be merged with NCC's wholly owned sub- sidiary NCC Rasmussen & Schiøtz to form the largest construction company in Denmark. In March, NCC sold its shareholding in Neptun Maritime to Sea Containers. A total of 65 percent of the shareholding was sold for cash, at a price of FIM 18 per share, corresponding to approximately SEK 370 m. At the same time, an option was signed granting the seller the right to sell the remaining holding in three years time for FIM 15 per share. The cash sale generated a capital gain of approximately SEK 100 m. "The level of orders received by construction operations during the first quarter was strong, particularly in Sweden, where orders rose by a full 16 percent," comments Jan Sjöqvist, President and Chief Executive Officer of the NCC Group. "The merger of NCC's Danish subsidiary NCC Rasmussen & Schiøtz with Superfos Construction is proceeding as planned and will be completed during the first half of 1999. The sharp seasonal fluctuations in the acquired company's business trend had a negative impact on consolidated income during the first quarter. Our assessment that the acquisition will contribute SEK 50 m. to NCC's earnings in full-year 1999 and approximately SEK 100 m. annually as of the year 2000 stands firm," adds Jan Sjöqvist. For further information, please contact: Bo Friberg, Senior Vice President - Business Control (Tel: +46-70 621 04 40), or Hans-Olof Karlsson, Senior Vice President - Corporate Communications (Tel: +46-8-655 22 79). Appendix: Interim report for the three months ended March 31, 1999 (10 pages) ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/1999/05/05/19990505BIT00510/bit0001.doc http://www.bit.se/bitonline/1999/05/05/19990505BIT00510/bit0002.pdf