Veidekke's overall business activities increased by 22 per cent in Q1 2012, compared with last year. Q1 earnings came to MNOK -52 on revenues of BNOK 4.3.
"Performance has improved somewhat year-on-year. We see strong growth in Veidekke's revenues and backlog of orders, but the margins on construction operations in Norway continue to lag behind slightly", comments CEO Terje R. Venold. "Q1 is traditionally an expense quarter for a business like Veidekke, not least because our asphalt operations have little or no activity in the winter," he adds.
Veidekke's Q1 sales totalled BNOK 4.3 (BNOK 3.5 in Q1 2011). The profit before tax came to MNOK -52 (MNOK -69). Earnings per share were NOK -0.3 (NOK -0.4). The backlog of orders for the Group's construction business is currently valued at BNOK 14.7 (BNOK 12.9). The figures are taken from the segment accounts.
Construction operations
Construction operations in Norway continued to see low margins, while margins have picked up in Sweden and Denmark. In contrast, total sales in the three countries climbed by 24 per cent, with Norway alone achieving an increase of 35 per cent compared with last year. This increase is mainly attributable to building projects. The order backlog increased by 14 per cent during the same period.
The total turnover for construction operations in Q1 2012 was MNOK 3 803 (MNOK 3 056), resulting in a profit of MNOK 65 (MNOK 46).
Property development
The level of activities and housing sales remained good in Norway in Q1. The Swedish housing market appears to be looking up, with increasing sales, particularly in Gothenburg and Stockholm. There were 1 245 dwellings under production at the end of Q1 (976). Two hundred and five dwellings (210) were sold in Q1 2012.
Q1 sales for Veidekke's Property operations totalled MNOK 394 (MNOK 377), generating a profit of MNOK 38 (MNOK 45).
Industry
Activities are at a seasonal low during the first three months of the year, representing a quarter of net expense for Industry, but the results are satisfactory. Focus is devoted to continuous improvement, i.e. to boosting productivity and reducing costs.
Veidekke's total turnover in Q1 came to MNOK 301 (MNOK 311), resulting in earnings of MNOK -144 (MNOK -141).
HSE
Despite the additional priority Veidekke has given to health, safety and the environment, the Group has experienced two fatal accidents in the early months of 2012. One man was killed in connection with the installation of concrete elements, while the other lost his life in a fall. Adding to our sorrow is the fact that both accidents took place on the same project.
The LTI figure for the Group (the number of lost time injuries that occur per million hours worked) ended at 7.9 (4.8) in Q4.
Sick leave for all employees in Norway totalled 5.7 per cent (5.5 per cent), while in Sweden it was 3.7 per cent (3.1 per cent) and in Denmark 2.6 per cent (1.9 per cent). (All figures are 12-month rolling.)
See also the Board's report for Q1 2012, which is attached to this press release. The Q1 presentation will be held at 8 a.m., and will include a report on Veidekke's strategy and plans for the coming years. The presentation will be webcast.
For more information:
President & CEO Terje R. Venold, phone + 47 21 05 77 01 / +47 90 58 23 23, terje.venold@veidekke.no
Executive Vice President /CFO Jørgen W. Porsmyr, phone+ 47 21 05 76 44 / +47 90 75 90 58,
jorgen.wiese-porsmyr@veidekke.no
Executive Vice President Communication Kai Krüger Henriksen, phone + 47 21 05 77 04 / +47 90 51 93 60, kai.henriksen@veidekke.no
Veidekke is one of Scandinavia's largest contractors with 6,100 employees and a turnover of NOK 18 billion (2011). Activities include building and construction projects, residential developments, asphalt plants, aggregates and road maintenance. Our values are professional, honest, enthusiastic and pioneering. Our goals for health, safety and the environment, HSE, have equal status with our financial goals. Veidekke is characterized by a decentralized organizational model with a strong corporate culture and a high degree of employee involvement. Over half the employees are co-owners, holding 20 % of Veidekke'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.
| Title | File type |
| Report Q1 2012 |