Slow House Sales Affect Veidekke's Figures for the First Quarter
"Our other operations show only minor deviations. But we are all the happier to see that our orders continue to grow," says Mr. Venold.
Developments in the first quarter
Veidekke has maintained a steady course in spite of the weaker market situation. The Group's financial position is strong and this gives Veidekke freedom of manoeuvre and security in a tighter market.
Veidekke's construction operations in Norway continue to make good headway, although the market has become more difficult in some regions. The figures for the first quarter for Veidekke's construction operations in Denmark, Hoffmann A/S, are also in line with expectations. Construction operations in West Sweden continue to progress favourably, while operations in Stockholm and Skåne are lagging slightly behind as regards profitability.
Orders-on-hand for Veidekke's construction operations totalled just under NOK 8 bn at the end of the quarter. Both building and heavy construction show an increase, but this is more noticeable in heavy construction.
"In light of the uncertainty in the economy, we are reasonably satisfied with the situation," says President and CEO Terje R. Venold. "The fall in sales of dwellings naturally affects our figures in all three Scandinavian markets, but thanks to our orders-on-hand and our strong financial position we can still see many opportunities ahead of us," he adds.
The figures for the Industry Division reflect the low level of activity in the asphalt segment in the winter months. Towards the end of the quarter, tenders were opened for asphalt contracts for the Public Roads Administration and Veidekke has done well so far. Veidekke Gjenvinning's operations are not quite up to target. This is due both to a lower level of activity in the sector and to stiffer price competition.
Reference is also made to the Board of Directors' report for the first quarter 2003, which is enclosed with this press release.
For further information, please contact:
Terje R. Venold, President and CEO,
tel. +47 21 05 77 01 / 905 82 323
Arne Giske, Senior Vice President & CFO,
tel. +47 21 05 77 80 / 905 89 526
Jørgen G. Michelet, Director, Finance and Investor Relations,
tel. + 47 21 05 77 22 / 917 43 856
Kai Krüger Henriksen, Senior Vice President, Communication,
tel. +47 21 05 77 04 / 905 19 360