Turnover in Veidekke increased by 16% in the second quarter of 2012 compared to same period last year. Profit before tax amounted to 166 MNOK on a total turnover of 5.4 BNOK.
"Excluding last year's capital gains and revaluations, profit grew by nearly 25% in the second quarter compared to same period last year. We have increased activity, good operating and financial results in most of our units in Scandinavia, and we end the first half year with a record order backlog", says CEO, Terje R. Venold in Veidekke.
Second quarter turnover for Veidekke reached 5.4 BNOK (4,6 BNOK in 2011). Profit before tax was 166 MNOK (390 MNOK). Earnings per share were NOK 0.9 (2.4). The order backlog for the Group's construction business now totals 15.6 BNOK (13,9 BNOK). The figures are taken from the segment accounts.
Growth in Veidekke is primarily organic, supplemented by some smaller acquisitions.
"Organic growth comes from continuous improvement in the individual units, as well as from improved utilisation of shared knowledge and expertise. This contributes to improved margins as the figures for the second quarter show. In addition, improvement programmes have contributed to a qualitatively strengthened order backlog and, looking at the orders, we see that many of those that came in during the quarter were developed and directly negotiated. All in all, this provides a basis for positive expectations of Veidekke's future development", says Terje Venold.
Construction operations
In Norway, the increase in turnover continued from the previous quarter and ended some 22% above the same period in 2011, while higher project margins on new contracts resulted in a profit margin of 2.3% (1.5%). In Sweden and Denmark both turnover and profits were on the same level as the second quarter last year.
Total turnover for construction operations in the second quarter amounted to 4.2 BNOK (3,7 BNOK) and profit before tax amounted to 100 MNOK (73 MNOK).
Property
The strong housing market in Norway provides high activity levels and high project margins. In Sweden, results were marked by a continued weak housing market due to increased global economic uncertainty, combined with a tightening credit market. In the large cities of Norway and Sweden, too few homes are still being built in relation to population growth and immigration, which creates great future potential. The number of dwellings under production was 1 321 at the end of the quarter (1 158). A total of 178 homes were sold in the second quarter (as the year before).
Turnover for Veidekke's Property operations in the second quarter totalled 575 MNOK (377 MNOK) and profit before tax amounted to 26 MNOK (177 MNOK). Last year's results included a gain of 133 MNOK for the acquisition of Bouwfonds shares in 2011.
Industry
Higher activity in asphalt and road maintenance gave good growth in sales for Industry operations compared with last year. Excluding gains on the sale of Veidekke Recycling of 124 MNOK in the second quarter last year, earnings also developed positively.
Veidekke Industry's total turnover in the second quarter was 912 MNOK (827 MNOK) and profit before tax was 46 MNOK (163 MNOK).
HSE
There was an accident in the Norwegian construction operations in the second quarter in which one person died from an accidental fall. The LTI rate for the entire Group (number of injuries per million hours worked.) in the second quarter ended at 8.9 (5.7). Sick leave for employees in Norway in the quarter was 5.1% (5.7%), while in Sweden it was 3.7% (3.6%) and in Denmark it was 2.6% (2.1%). (All figures 12-month rolling)
See also the Board's Report for the second quarter of 2012, which is attached to this press release.
Report 2nd quarter 2012 (html)
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 Q2 2012 |