Veidekke's improvements continued and the group achieved pre-tax profits of NOK 776 million in 2013. A strong fourth quarter provided a NOK 336 million profit and an increase in turnover of 10 per cent to NOK 6.1 billion. "Operations have been good with improved results in all segments, in addition to increasing the order backlog and good cash flow," says President and CEO Arne Giske of Veidekke, who also experienced that 2013 saw the group's annual turnover exceed NOK 21 billion for the first time. The board of directors proposes a dividend of NOK 3 per share for 2013.
Veidekke's turnover in the fourth quarter came to NOK 6,146 million (5,571), with a quarterly profit of NOK 336 million (292). This corresponds to a profit margin of 5.5 per cent (5.2). For the whole of 2013, turnover came in at NOK 21,191 million (20,460). The pre-tax result was a profit of NOK 776 million (680) with a profit margin of 3.7 per cent (3.3). The combined order backlog totals NOK 18.3 billion (16.5). Earnings per share was NOK 4.50 (3.90). (The figures are from the segment accounts.)
Construction operations are showing growth and improved margins in Norway and Denmark in the fourth quarter. Both building and construction in the Norwegian operations have improved margins, and the Danish operations are characterized by very good project profitability. Swedish operations have had poor profitability, but the position in Sweden has been strengthened within commercial buildings through the acquisition of Arcona AB. Combined, operations now have a good and well-composed order backlog that is 11 per cent higher than last year's.
In 2013 property development have experienced strong activity and a high sales rate both in Norway and Sweden. In the fourth quarter, residential sales in Sweden significantly increased, while they slowed down in Norway. At the end of the quarter Veidekke had 1,469 homes under construction (Veidekke's share), compared with 1,277 the previous year. The sales rate was 74 per cent (80).
Veidekke has also seen significant improvements in industry operations. High production combined with a focus on cost has provided good results in the asphalt area. Aggregate operations have also seen strong activity, which has resulted in a significant improvement over the previous year.
Health, safety and environment (HSE)
Work on reducing the number of accidents and serious incidents has, in combination with goal-oriented efforts to reduce sickness absence, the highest priority in Veidekke. This has led to good results in all three countries: The LTI rate for the group (number of injuries with absence per million work hours) ended at 5.2 (8.4), while sick leave for employees in Norway was 4.4% (4.9), in Sweden 3.6% (3.6) and in Denmark 1.3 % (2.0). All figures are 12 months rotating as of Q4.
Please refer to the Board of Directors' report for fourth quarter 2013, which is attached to this press release.
For more information please contact:
President and CEO Arne Giske, tel. +47 21 05 50 00 / +47 90 58 95 26, arne.giske@veidekke.no
CFO Terje Larsen, tel. +47 90 68 78 51, terje.larsen@veidekke.no
Communications Director Grete Nykkelmo, tel. +47 913 11 000, grete.nykkelmo@veidekke.no
Veidekke is one of Scandinavia's leading contractors and property developers with a turnover of NOK 21 billion (2013) and 6,300 employees. Activities include building and construction projects, residential developments, asphalt plants, gravel and aggregates, and road services. Our values are professional, honest, enthusiastic and ground-breaking. Our goals for health, safety and the environment, HSE, have equal status with our financial goals. Veidekke is characterised by a strong corporate culture with employee involvement and co-ownership as important cornerstones. More than half of the employees are co-owners, holding around 20 per cent of the Group's shares between them. The company is listed on the Oslo Stock Exchange and has always posted a profit since it was founded in 1936.
| Title | File type |
| Report Q4 2013 |