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Solid profits and record-high orders

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Veidekke reinforced its market position during the second quarter and showed a higher turnover and larger market share than last year in all areas of its activities. The profits are also better than for its contracting and industrial activities. Developments on the market have been better than expected, especially in the building sector. We have had a good inflow of new contracts and our order books are fuller than ever before, says President and CEO Terje R. Venold.


Veidekke's turnover of NOK 3,009 million for the first six months represents a growth of 17% compared with last year. 8% of this increase derives from acquired companies and 9% from organic growth. Profit before tax was NOK 107.4 million (NOK 122.6 million). The fall in profit is due to smaller gains on property sales than last year. In the second quarter, turnover was NOK 1,673 million (NOK 1,495 million) and profit before tax was NOK 74.0 million (NOK 86.7 million). Veidekke's contracting activities, i.e. Building and Heavy Construction, showed a profit of NOK 62.6 million, which is NOK 10.3 million higher than for the second quarter last year, while profit for the Industry Division remained practically unchanged at NOK 12.8 million (NOK 12.5 million). Property showed a loss of NOK 0.7 million (+ NOK 22.2 million).


New contracts received in the second quarter had a value of NOK 1,634 million. At the end of the quarter, orders-on-hand stood at NOK 3,197 million, compared with NOK 2,682 million at the end of 1998 and NOK 3,011 at the same time last year.


Given our figures for the first half of the year, our strong market position and our healthy order books, we should have every possibility of achieving our financial targets again this year. A good financial position also gives us strength to continue with our business investments in each sector, says President and CEO Terje R. Venold.

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