Veidekke produced Q4 earnings of 206 MNOK on turnover of 5.4 BNOK. For the full 2011 year, earnings reached 751 MNOK and turnover 17.9 BNOK. "A lot of arrows are pointing upwards in Veidekke now. Revenue, profit, margins, orders and housing sales are all increasing, so despite pressure on margins in construction, 2011 was a very good year for Veidekke" says President and CEO, Terje R. Venold.
Veidekke's turnover in 2011 was 17.9 BNOK (16.3 BNOK in 2010). Profit before tax was 751 MNOK (590 MNOK). Order reserves for the Group's construction business is now at 13.9 BNOK (12.2 BNOK). The figures are taken from the segment accounts. Earnings per share were NOK 4.80 (NOK 2.60), and the Board proposes a dividend of 2.75 NOK per share (2.50).
Construction operations
Q4 earnings in Norway and Sweden were impacted by work on contracts signed during the recent recessionary period with a strong pressure on margins, while turnover in all three countries increased by nearly 20% in the quarter. In Denmark, turnover increased by 32% in the quarter compared to last year, and the result was a record margin of 6.3%. While order reserves decreased in Sweden, reserves increased greatly in Norway and Denmark during the year.
The total turnover for construction operations in Q4 was 4.152 BNOK (3.481 BNOK), while earnings were 110 MNOK (186 MNOK). For the 2011 year, turnover totalled 14.4 BNOK (12.7 BNOK) with earnings of 301 MNOK (568 MNOK).
Property
The positive trend of increased home sales in and around major cities continued throughout the year in Norway, while in Sweden, the international financial turmoil resulted in lower home sales in the second half of 2011. The number of dwellings under production was 1 104 at year's end (901). 193 homes were sold in Q4 (146), and 693 homes were sold in all of 2011 (628).
Sales for Veidekke property operations in Q4 reached 457 MNOK (303 MNOK) with earnings of 28 MNOK (-9 MNOK). For 2011, turnover totalled 1 526 MNOK (1 066 MNOK) and earnings were 281 MNOK (14 MNOK).
Industry
Asphalt operations enjoyed a strong end to the season with an additional month's production time compared to the year before. Activity was high in crushed stone and gravel and profitability for the quarter was good. In addition, road maintenance continued its positive trend in the fourth quarter and the business is now in balance.
The total turnover for Veidekke Industry in the final quarter of the year was 985 MNOK (897 MNOK), with earnings of 60 MNOK (7 MNOK). For the full 2011 year, revenues reached 3 401 MNOK (3 076 MNOK), and the result for the year was 216 MNOK (64 MNOK).
HSE
Sick leave for all employees in Norway in Q4 was 5.6% (5.6%), while in Sweden it was 3.7% (3.5%) and in Denmark it was 2.4% (2.3%). The injury rate for the entire Group (number of injuries per million hours worked - 12 months rolling) was 6.1 (6.9) in the fourth quarter.
See also the Board's report for the fourth quarter of 2011 which is attached to this press release.
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.
This information is subject of the disclosure requirements acc. to §5-12 vphl (Norwegian Securities Trading Act)
| Title | File type |
| Report Q4 2011 |