Veidekke is reporting sound progress in both turnover and profits for Q2. Turnover increased by 12% from last year to NOK 6.0 billion. Earnings before tax increased by NOK 80 million to NOK 225 million. "Most of our operations have seen good developments and are showing profitability improvements. The order backlog is at a very high level, and our financial position has been further strengthened," says Arne Giske, President and CEO of Veidekke.
Veidekke's turnover in Q2 was NOK 6,040 million (5,372), and earnings before tax were NOK 225 million (145). This corresponds to a profit margin of 3.7 per cent (2.7 per cent). The combined order backlog now totals NOK 18.8 billion (18.3). The figures are from the segment accounts. Earnings per share (IFRS) were NOK 1.40 (0.5).
Construction
"Construction activities increased turnover by 11% in Q2, and growth in this quarter came in Sweden and Denmark. In Norway turnover declined somewhat compared to the previous year, while the profit margin in Norwegian construction operations increased from 2.7 to 3.4%," Giske says. Certain units are demonstrating very good profitability, while others lag behind our targets. In the time ahead focus will be on improving the profitability of these.
Turnover for construction operations was NOK 4,747 million (4,285) and earnings before tax were NOK 116 million (87) in Q2.
Property development
"Veidekke's property operations showed stable turnover in the quarter, while earnings before tax increased to NOK 50 million from NOK 40 million last year. Progress is mainly from Norwegian operations, which have achieved good results from projects in the final stages, in addition to other smaller project sales," Giske explains.
At the end of the quarter Veidekke had 1,079 homes under construction, compared with 1,300 the previous year. 237 (219) homes were sold, and the sales rate for projects under construction was 74% (76).
Turnover in property operations was NOK 422 million (426), and earnings before tax were
NOK 50 million (40).
Industry
"Veidekke Industry is characterized by high turnover and a strong improvement in results. Operations saw a growth in turnover of 23% in the quarter and earnings were more than doubled compared to the same month last year. This was primarily related to asphalt operations, and is a result of a high level of activity and sound operations," President and CEO Arne Giske concludes.
Industrial operations had turnover of NOK 1,110 million (900) and earnings before tax of NOK 82 million (36).
Occupational health, safety and the working environment (HSE)
Work on reducing the number of accidents and serious incidents continues, and more stringent requirements toward the use of safety equipment have been introduced, as well as increased focus on safety in the early stages of projects. The LTI rate for the Group (number of absences due to injury per million hours worked) was 6,7 (6,4) for Q2. Sick leave has decreased in the quarter in all three countries.
Refer to the Board of Director's report for the second quarter 2014, 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 largest contractors and property developers. The company undertakes all types of building and construction contracts, maintains roads and produces asphalt, crushed stone and gravel. The company is characterised by involvement and local knowledge. Turnover is NOK 21 billion (2013), and half of the 6,300 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.
Veidekke - local presence, Scandinavian strength.
This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.
| Title | File type |
| Report Q2 2014 |