| Veidekke had a turnover for the second quarter of NOK 1,495 million, as against NOK 1,329 million for the same period last year. This gave a profit of NOK 86.7 million, which is a marked improvement on last year when the quarterly profit was NOK 46.0 million. `This result strengthens our position for further growth and development,` says President and CEO Terje R. Venold. `We have a good basis in qualitatively and quantitatively sound order books and in our site and property portfolio for developing residential and non-residential buildings. We have an organisation which is very well adjusted and motivated for further effort, and we have new business areas under development which will contribute to Veidekke`s future growth. Our figures at the end of the first six months of the year show that we are on schedule with regard to the goals we have set for our operations,` says Mr. Venold.
Veidekke has purchased the asphalt and ready-mix concrete operations of Hans Gaarder A/S in Vestfold, and the remaining 50% share of A/S Kongsvinger Asfalt. `These investments, along with other completed and planned investments, mean that we have an industrial division today with very exciting development potential,` Mr. Venold adds. `Increasing our share of the value chain in building and heavy construction is an important part of our strategy. Our focus on creating value through interaction is based on this philosophy, and interaction with internal and external suppliers shows that this focus has a positive effect on our profit margins,` says an optimistic Mr. Venold.
The turnover for the first six months was NOK 2,568 million compared with NOK 2,259 million at the same time last year, giving a pre-tax profit of NOK 122.6 million as against NOK 146.3 million last year. The half-yearly result for 1998 is lower than for 1997 because Veidekke had a considerable gain on the sale of a major property development project last year. Earnings per share for the second quarter were NOK 5.09 (NOK 2.64) and for the first six months NOK 7.38 (NOK 8.85). Orders-on-hand for building and heavy construction are very satisfactory, standing at NOK 3,011 million at the end of June, compared with NOK 2,710 million at the end of last year and NOK 2,411 million at the same time last year.
For further information, please contact:
Terje R. Venold, President and CEO
phone + 47 66 98 54 05 or + 47 905 82 323 (mobile)
Jørgen G. Michelet, Senior Vice President, Finance and Investor Relations
phone +47 66 98 54 40 or + 47 917 43 856 (mobile)
Kai Krüger Henriksen, Senior Vice President, Information
phone + 47 66 98 53 90 or + 47 905 19 360 (mobile)
VEIDEKKE ASA
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