Veidekke ASA: Stable results and high activity in Veidekke
Veidekke's performance in the first quarter indicates that activity is stabilising at a high level with turnover in excess of NOK 4 billion. The result for the quarter of NOK -63 million is slightly lower than last year, primarily as a result of write-downs in the Swedish Construction operations and improvements in margins in Construction Norway. Residential development operations in Norway remain strong, with a high order backlog.
Veidekke had a turnover of NOK 4,049 million in the first quarter (NOK 4,299 million in Q1 2012). The pre-tax result was a loss of NOK -63 million (NOK -52 million). The order backlog for the Group as a whole totals NOK 16.8 billion (NOK 15.4 billion). The figures are taken from the segment accounts. Earnings per share was NOK -0.30 (NOK -0.30).
Construction
Activity in the Norwegian building and construction market is on a high level, but local variations have nevertheless resulted in a slight decrease in Veidekke Entreprenør's turnover in Norway. Despite this, theprofit margin has improved, compared with last year. In Sweden, turnover was on a par with last year, but with disappointing results from building operations in Stockholm. Veidekke's Danish construction operations, Hoffmann, reported a small decline in sales, while the profit margin improved, due to good progress in ongoing projects.
The combined turnover from construction operations in the first quarter came to NOK 3,590 million (NOK 3,803 million), resulting in a profit of NOK 46 million (NOK 65 million).
Property development
The housing market in Norway is characterised by high demand and strong sales in and around the major cities. The Swedish market is beginning to stabilise, and house sales appear to be picking up. Veidekke sold a total of 212 units in the first quarter (including Veidekke's share of jointly-owned projects). Several of the major wholly owned projects are nearing completion and are about to be sold, resulting in slightly lower residential sales in Norway than in the corresponding quarter of 2012.
There were 1,795 dwellings under construction at the end of the first quarter, of which Veidekke's share amounted to 1,381 (1,245). The sales rate in the portfolio was 77 per cent. Turnover for Veidekke's Property Development division in the first quarter ended at NOK 406 million (NOK 394 million), yielding a profit of NOK 45 million (NOK 38 million).
Industry
The first quarter is always dominated by seasonally low activity in Veidekke Industri, and Asphalt in particular. Veidekke has won several contracts in the competitive tendering for asphalt laying for the Norwegian Public Roads Administration in 2013, andincreased investments in public transport have led to good market opportunities for Road Services and Asphalt.
The combined turnover for Veidekke Industri in the quarter came to NOK 288 million (NOK 301 million), resulting in a quarterly loss of NOK -140 million (NOK -144 million).
Health, safety the working environment (HSE)
Veidekke saw a decline in sickness absence and lost-time injuries in the first quarter. In Norway, sickness absence was 4.8 per cent (5.7 per cent), in Sweden 3.6 per cent (3.7 per cent) and in Denmark 1.7 per cent (2.6 per cent). The LTI rate for the Group as a whole (the number of lost-time injuries per million working hours as a 12 month rolling average) was 6.9 (7.9) in the first quarter.
Please see the Board of Director's report for the first quarter 2013 (html), and the attached pdf.
For more information please contact:
CEO Terje R. Venold, tel. +47 21 05 77 01 / +47 90 58 23 23, terje.venold@veidekke.no
CFO Jørgen Wiese Porsmyr, tel. +47 21 05 76 44 / +47 90 75 90 58, jorgen-wiese.porsmyr@veidekke.no
Communications Director Kai Krüger Henriksen, tel. +47 21 05 77 04 / +47 90 51 93 60, kai.henriksen@veidekke.no
Veidekke is one of Scandinavia's leading contractors and property developers with a turnover of NOK 20 billion (2012) and 6,300 employees. Activities include building and construction projects, residential developments, asphalt plants, gravel and crushed stone and road services. Our values are professional, honest, enthusiastic and ground-breaking. Our goals for health, safety and the environment, HSE, have equal status with our financial goals. Veidekke is characterised by a strong corporate culture with employee involvement and co-ownership as important cornerstones. More than half of the employees are co-owners, holding around 20 per cent of the Group'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.