Veidekke achieved a profit of 170 MNOK and a turnover of 4.4 BNOK in the fourth quarter. For all of 2010, net profit was 590 MNOK on turnover of 16.3 BNOK. "A 5% increase in annual revenues and a 13% improvement in earnings, combined with a three-fold increase in housing production gives us good reason to be optimistic going forward", says Terje R. Venold.
Veidekke's turnover in 2010 was 16 296 MNOK (15 558 MNOK in 2009). Profit before tax was 590 MNOK (523 MNOK). Earnings per share were 2.60 NOK (3.00 NOK), and the Board proposes a dividend of 2.50 NOK per share (2.50 NOK in 2009). The order backlog for the Group's construction business at the end of 2010 was 12.2 BNOK (12.3 BNOK).
"We're running a strong and good business, and we've managed the economic downturn well. Our sound financial position and order backlog means that we are well positioned and prepared for the market growth we expect in 2011, despite the attack on our reputation in recent days", says Venold.
Construction operations
The positive developments in the Scandinavian construction market continued in the fourth quarter. The result was an increase in activity and good profit margins, despite strong competition. Development was particularly positive for non-residential buildings and housing in Norway and Sweden.
In total, construction operations' sales in the fourth quarter were 3 481 MNOK (3 225 MNOK) with a result of 186 MNOK (223 MNOK). For all of 2010, turnover was 12 749 MNOK (12 095 MNOK) and profit was 568 MNOK (606 MNOK).
Property development
The market has shown a positive trend with an increase in home sales over the past year. The number of housing units under production at year end was 901, versus 310 units last year. In total, Veidekke property sold 628 homes in 2010 (430). In Denmark, where there is no property development activity, profit in the quarter was impacted by a land bank write-down of 45 MNOK due to market uncertainty.
Sales for Veidekke property operations in the fourth quarter totaled 303 MNOK (227 MNOK) and the result ended at - 8.6 MNOK (-26 MNOK). For all of 2010, turnover ended at 1 066 MNOK (711 MNOK) with a profit of 14 MNOK (- 74 MNOK).
Industry
Manufacturing activity was affected by seasonally low activity in the fourth quarter. Focus in 2010 was on increasing profitability, which resulted in margin improvements especially in the areas of asphalt and recycling. Asphalt production increased by 7% in 2010 despite a severe winter with a late start and an early end in November.
Total turnover for Veidekke Industry in the fourth quarter was 897 MNOK (755 MNOK), and the result was 7.1 MNOK (8.6 MNOK). For the year 2010, revenues reached 3 076 MNOK (2968 MNOK) while profit was 64 MNOK (7 MNOK).
HSE
Sick leave for all employees in Norway in the fourth quarter was 5.4% (5.7%), whereas in Sweden it was 2.8% (3.1) and in Denmark 2.2% (2.4%). The injury rate for the entire Group (number of injuries per MNOK hours worked) ended at 4.8 (5.7) in the fourth quarter.
See also the Board's report for the fourth quarter of 2010 which is attached to this press release.
Report Q4 2010 (html)
For more information:
President & CEO Terje R. Venold, phone + 47 21 05 77 01 / 90 58 23 23, terje.venold@veidekke.no
Executive Vice President /CFO Jørgen W. Porsmyr, phone+ 47 21 05 76 44 / 90 75 90 58, jorgen.wiese-porsmyr@veidekke.no
Executive Vice President Communication Kai Krüger Henriksen, phone + 47 21 05 77 04 / 90 51 93 60, kai.henriksen@veidekke.no
Veidekke is one of Scandinavia's largest contractors with 6,000 employees and a turnover of 16.3 billion NOK (2010) Activities include building and construction projects, residential developments, asphalt plants, gravel and aggregates, road maintenance and recycling. 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.
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| Report Q4 2010 |