Broad profit growth for Veidekke
Both turnover and profit increased for Veidekke in the third quarter compared with the same period last year. "We have delivered a good third quarter. The most positive for the quarter was the housing market, which, with increased sales and new project starts, improved significantly," says CEO Terje R. Venold.
Veidekke's turnover in the third quarter was MNOK 4 448 (MNOK 3 980 for the third quarter of 2009). Profit before tax was MNOK 270 (MNOK 240), earnings per share were NOK 1.50 (NOK 1.30) and profit margin for the quarter was 6.1% (6.0%). The order backlog for the Group's construction operations now totals BNOK 12.1 (BNOK 11.3).
"Our results for the third quarter confirm that the financial crisis is behind us. But they also show, as in previous downturns, that the road to recovery is slightly longer for the construction industry than for many other industries, summarises CEO Venold.
Construction operations
Contracts currently under production in construction operations are largely contracts entered into during the financial crisis and during strong competition and tighter margins. With their higher volumes and improved margins, however, Sweden and Denmark contributed positively and reduced the impact. Total sales for construction operations in the third quarter were MNOK 3 187 (MNOK 2 840) and operations earned a profit of MNOK 133 (MNOK 141). The profit margin was 4.2% (5.0%).
Property
The real estate market around the largest cities in Norway and Sweden continued to show positive development in the third quarter with a significant increase in sales and thus new project starts. In all, 216 dwellings were sold in the quarter (100 in the same quarter in 2009). The number of dwellings under production was 728 (194). Turnover for Veidekke's property operations totaled MNOK 322 in the third quarter (MNOK 105), with a profit of MNOK 21 (MNOK - 12).
Industry
The quarter was marked by high activity in all business areas within industry operations. Earnings increased 18% over the same period last year despite an additional provision for losses on road maintenance contracts. Total turnover for Veidekke Industry in the third quarter was MNOK 1 077 (MNOK 1 062), with earnings ending at MNOK 136 (MNOK 115).
HSE
Sickness absence for all employees in Norway was 5.5% (5.8%). For all employees in Sweden, sickness absence was 3.0% (3.0%) and in Denmark it was 2.3% (2.2%). The injury rate (number of injuries per million hours worked) for the entire group was 5.9 in the third quarter (4.9).
See also the Board's Report for the third quarter of 2010, which is attached to this press release.
For more information contact:
President & CEO Terje R. Venold, tel 21 05 77 01 / 90 58 23 23, terje.venold@veidekke.no
Executive Vice President / CFO Jørgen W. Porsmyr, tel 21 05 76 44 / 90 75 90 58, jorgen.wiese-porsmyr@veidekke.no
Communications Director Kai Krüger Henriksen, tel 21 05 77 04 / 90 51 93 60, kai.henriksen@veidekke.no
See also
http://www.veidekke.com/reports/2010/quarter/3/veidekke_in_3_quarter_2010/
VEIDEKKE ASA
Veidekke is one of Scandinavia's largest contractors with 6,000 employees and a turnover of NOK 16 billion. Activities include building and construction projects, residential developments, asphalt plants, gravel and aggregates, road maintenance and recycling. Our values are professional, honest, enthusiastic and pioneering. Our goals for health, safety and the environment, HSE, have equal status with our financial goals. Veidekke is characterized by a decentralized organizational model with a strong corporate culture and a high degree of employee involvement. Over half the employees are co-owners, holding 20% of Veidekke's shares between them. The company is listed on the Oslo Stock Exchange and has never declared a loss since it was founded in 1936.