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VEIDEKKE IS STICKING TO ITS 5% MARGIN

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Good results can't be bought, they have to be created, says Veidekke's President and CEO, Terje R. Venold. As we grow and develop, we will continue to focus on a 5% profit margin. It takes economic and financial muscle to meet a tighter market, and it is the quality of our current operations that has to give us that basis, says Mr. Venold. Greater value-creating interaction with our customers and suppliers and between our business areas is the main reason why we are still producing sound financial results, he adds.

Veidekke will continue to give priority to profitability before volume in the time to come and give particular attention to risks when signing contracts both with clients and with suppliers and sub-contractors. With the strength it has in its own organisation, in its well-developed relationships with customers and suppliers and in its relatively strong order books, Veidekke is well prepared to meet the new market situation. Veidekke's target to maintain a return on equity on a level equivalent to a 5% profit margin stands firm, Mr. Venold says.

Turnover for the first nine months of the year was NOK 4,075 million compared with NOK 3,721 million at the same time last year, giving a pre-tax profit of NOK 223.4 million. This year's profit figure is on a par with last year's (NOK 225.8 million), in spite of the large gains on sales made by the company in 1997.


Earnings per share were NOK 5.81 (NOK 4.50) for the third quarter and NOK 13.19 (NOK 13.35) for the whole period. The order books for the Building and Heavy Construction Divisions show a total of NOK 2,838 million at the end of the third quarter, compared with NOK 2,610 million at the same time last year and NOK 2,710 million at the end of last year.

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