Veidekke's Quarterly Figures in Line with June Profit Warning
"Moreover, the first six months of 2001 were relatively weak in our Heavy Construction Division. Mostly because widespread surplus capacity in the sector put heavy pressure on prices for several of the projects that were put out for tender, resulting in prices we didn't believe would give us acceptable earnings," says Venold. "However, we can now see definite signs that prices are improving, and we are well placed to win some major projects this autumn," he adds.
Veidekke's total volume of orders-on-hand remains high, and the company is in the final stages of negotiations on a number of major contracts. Against this background and the various measures that have been implemented to improve profitability, there is every indication that, after the second half of the year, Veidekke's profit for the year will be on a par with last year's figure.
Veidekke's division in Denmark (Hoffmann) and its Industry and Property divisions are progressing as planned.
Group developments
Veidekke achieved a turnover for the second quarter of NOK 2,648 million (NOK 1,841 million). Earnings before financial items, taxes and depreciation (EBITDA) were NOK 168.2 million (NOK 184.1 million). Cash flow per share was NOK 4.58 (NOK 5.11). Pre-tax profit was NOK 14.9 million (NOK 80 million). This corresponds to earnings per share of NOK 0.22 (NOK 2.07).
The Group's operating profit for the second quarter was NOK 51.3 million (NOK 98.4 million). These figures take into account goodwill and amortisation at NOK 23.1 million (NOK 15.0 million). Net financial items were NOK -36.4 million (NOK -18.4 million). Excluding non-recurring costs, earnings before financial items, taxes and depreciation (EBITDA) were NOK 203.2 million.
The Group's order books showed a total of NOK 6,097 million at the end of the second quarter, compared with NOK 5,833 million at the beginning of the year and NOK 4,102 million at the same time last year.
VEIDEKKE ASA
Reference is also made to the Board of Director's Report for the Second Quarter 2001, which is enclosed with this press release: