Continues strong profit margin of last year and increased order volumes VEIDEKKE PRESENTS SOLID FIGURES AT END OF SECOND QUARTER
'We are very pleased with our figures for the second quarter,' says Veidekke's President and CEO Terje R. Venold. 'They are consistent with our financial targets and we have managed this in spite of the weak heavy construction market. Veidekke has orders totalling more than NOK 4 billion - nearly a billion more than last year, so it is only the relatively poor result for the first quarter that diminishes the overall picture,' he adds.
Order books
Orders-on-hand totalling NOK 4.1 billion represents an increase of NOK 905 million (28.3%) since this time last year. Orders-on-hand have risen by 27.8% (NOK 892 million) over their NOK 3.2 billion level at the end of last year.
Turnover
Veidekke's turnover for the second quarter was NOK 1.84 billion, as against NOK 1.67 billion for the same period last year. Profit before tax was NOK 80 million, an improvement of NOK 6 million compared with the second quarter 1999.
For the first six months of the year, Veidekke had a turnover of NOK 3.28 billion. This is an increase of 9% compared with last year (NOK 3.01 billion).
Profit
The profit margin for the second quarter was a healthy 4.4%, the same as last year. The profit margin for the first quarter was 2.8%, as against 3.6% for the first quarter 1999. The consolidated operating profit for the first six months was NOK 123.3 million, as against NOK 119.8million last year. Net financial items amounted to NOK -31.5 million, as against NOK -12.4 in 1999.
'If we make a correction of NOK 10 million for the cost of the strike in May, the Group achieved a profit margin of 4.9% in the second quarter,' says Mr. Venold.
Earnings per share were NOK 2.07 (NOK 2.16) for the second quarter and NOK 2.58 (NOK 3.19) for the first six months of the year.
Please also refer to the Veidekke Group's Report for the Second Quarter of 2000, which is enclosed.