Veidekke ASA: Strong results for Veidekke
"Major contracts, high residential sales and profit growth marked Veidekke's results for the second quarter of 2015. Revenue totalled NOK 6.2 billion, while the profit was NOK 318 million, which is 41% higher than the same period last year. In addition, the order backlog was at a historical high and 40% higher than at the end of last year", says President and CEO Arne Giske.
Veidekke's revenue in the second quarter of 2015 amounted to NOK 6.2 billion (6.0 billion in the second quarter of 2014), and profit before tax was NOK 318 (225) million. This corresponds to a profit margin of 5.1% (3.7%). The combined order backlog now totals NOK 23.4 (17.6) billion. The figures are from the segment accounts. Earnings per share (IFRS) was NOK 1.7 (1.4) for the quarter.
Veidekke's construction operations reported revenue of NOK 4.8 (4.7) billion for the second quarter, and profit before tax was NOK 159 (116) million. "A high level of activity and good craftsmanship has had a positive impact on our construction operations. In addition, our work with customers and tenders has resulted in an historically high order backlog after the quarter. In order to strengthen our capacity and competence, we have entered into an agreement for the acquisition of Reinertsen's construction and civil engineering operations in Norway and Lemminkäinen's operations in Uppsala", says Giske.
The profit before tax for property development operations was NOK 100 (50) million. Veidekke sold a total of 554 residential units in the quarter at a value of NOK 2.1 billion. Veidekke's share amounted to 449 (237) units. At the end of the quarter, there were a total of 1,356 (1,079) residential units under construction and the sales ratio was an impressive 84% (74%). "The high residential sales will increase residential production and contribute to a high level of activity for both property development and construction operations in the coming quarters", says Giske.
Veidekke s industrial operations reported revenue of NOK 1.1 (1.1) billion and a profit before tax of NOK 81 (82) million. "Our industrial operations maintained the same high level of activity and profit as last year. Increased government investment in transport also provides good growth opportunities for the aggregate operations", Giske concludes.
Veidekke's long-term OHS work is yielding results, and the number of injuries in the second quarter showed a marked decline year over year The lost-time injury rate was 4.1 (6.7), which is the lowest rate ever measured for Veidekke. Sickness absence remains at a stable, low level of 4.2% (4.2%). The figures are for the last 12 months as at the second quarter.
Reference is made to the Board of Director's report for the second quarter of 2015 for additional information.
For press photos, see www.flickr.com/photos/veidekke, for more information, contact:
President and CEO Arne Giske, tel. +47 21 05 50 00 / +47 90 58 95 26, arne.giske@veidekke.no
CFO Terje Larsen, tel. +47 90 68 78 51, terje.larsen@veidekke.no
Communications Director Grete Nykkelmo, tel. +47 91 31 10 00, grete.nykkelmo@veidekke.no
Veidekke is one of Scandinavia's largest construction and property development companies. The company undertakes all types of building and construction contracts, maintains roads and produces asphalt and aggregates. The company is characterised by involvement and local knowledge. Revenue is almost NOK 24 billion (2014), and half of the 6,400 employees own shares in the company. Veidekke is listed on the Oslo Stock Exchange and has always posted a profit since it was founded in 1936.