"The first quarter of the year was dominated by strong residential sales, an increased order backlog and clearly improved profits in Veidekke's construction operations, at the same time as it was the low season for industrial operations. Profit was negative at NOK -42 million, and revenue amounted to NOK 5 billion. The outlook is good for most of our business areas," says President and CEO Arne Giske.
Veidekke's Q1 revenue amounted to NOK 5,006 million, compared with NOK 5,228 in Q1 2014, and profit before tax was NOK -42 (4) million. This corresponds to a profit margin of -0.8% (0.1%). The combined order backlog now totals NOK 18.0 (16.8) billion. The figures are from the segment accounts. Earnings per share (IFRS) was NOK -0.1 (0.2).
Revenue for construction operations was NOK 4,360 (4,318) million, and profit before tax was NOK 103 (87) million in Q1. "Construction operations showed improvements in profits and margins and now have a solid order backlog that is 7% larger than at the same time last year. The market outlook is positive for our construction operations in all three Scandinavian countries," says Giske.
Revenue from property development operations was NOK 462 (750) million, and profit before tax was NOK 37 (77) million, reflecting the ongoing residential production. Veidekke sold 345 (100) residential units and had 1,123 (1,179) units under construction, and the sales ratio at the close of the quarter was an impressive 85% (75%). "We had excellent residential sales in both Norway and Sweden in the first quarter of the year. This will lead to a high level of activity and production for both property development and building construction operations going forwards," says Giske.
Industrial operations had revenue of NOK 433 (403) million and a profit before tax of NOK -149 (-141) million, as this is low season for asphalt operations. "Industrial operations have done well in this year's public-sector tender competitions for asphalt and road maintenance contracts. In addition, there is high demand for aggregates, where we have further strengthened our position in eastern Norway through the purchase of the remaining 50% of Martin Haraldstad AS, which has five quarries in Vestfold," concludes Giske.
The number of injuries in Veidekke has been reduced by 20% over the last two years, and this positive development has continued in the first quarter too. The company's LTI rate was 5.3 (6.3) at the end of the quarter, and sickness absence was 4.2 (4.2). These figures are on a 12-month rolling basis.
Please refer to the Board of Director's report for the first quarter 2015, which is attached to this press release.
For press photos, see www.flickr.com/photos/veidekke, for more information, 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 largest construction and property development companies. The company undertakes all types of construction and civil engineering contracts, maintains roads, and produces asphalt and aggregates. The company is characterised by involvement and local knowledge. Revenue is almost NOK 24 billion (2014), and half of the 6,400 employees own shares in the company. Veidekke is listed on the Oslo Stock Exchange and has always posted a profit since it was founded in 1936.
| Title | File type |
| Report Q1 2015 |