Veidekke's healthy profit performance has continued through the third quarter. Revenue totalled NOK 5.9 billion, while profit before tax was NOK 390 million. "Q3 was another quarter with profit growth, an increased order backlog and good residential sales. In addition, we have strengthened our positions through strategic acquisitions and new property projects," says President and CEO Arne Giske.
Veidekke's revenue in the third quarter of 2015 amounted to NOK 5.9 billion (NOK 6.0 billion in Q3 2014), and profit before tax was NOK 390 (370) million. This corresponds to a profit margin of 6.6% (6.2%). The combined order backlog has grown some 51% since the beginning of the year and now totals NOK 25.3 billion. The figures are from the segment accounts. Earnings per share (IFRS) was NOK 1.8 (2.2) for the quarter.
Veidekke's construction operations reported revenue of NOK 4.5 (4.4) billion for the third quarter and profit before tax of NOK 163 (148) million. "We have won many new contracts this quarter and are pleased to see that the order backlog is increasing in all three countries. In addition, we have made a number of acquisitions in Norway and Sweden," says Giske. During the third quarter Veidekke completed the acquisition of Reinertsen Entreprenør and Rekab's construction operations in Uppsala, as well as signing a letter of intent to acquire 80% of the shares in the civil engineering contractor Leif Grimsrud AS.
Property Development had revenue of NOK 479 (338) million and a profit before tax of NOK 52 (37) million. Veidekke sold a total of 328 residential units in the quarter for a value of NOK 1.2 billion. Veidekke's share amounted to 269 (271) units. At the end of the quarter, there were a total of 2,289 residential units under construction, of which Veidekke's share was 1,684, and the sales ratio was an impressive 86% (81%).
"We have had good sales this quarter too, and the market still looks promising, especially in Sweden. So far this year we have sold NOK 5 billion worth of homes. This will in turn boost production in the coming periods and was reflected in a 20% increase in the number of units in production in Q3," says Giske.
Veidekke's industrial operations reported revenue of NOK 1.4 (1.5) billion and a profit before tax of NOK 192 (193) million. "The third quarter is the high season for Asphalt, and with good operations both in the asphalt and aggregates units, Industry has delivered very solid results," says Giske.
The focus on occupational health and safety is yielding results in terms of a decrease in the number of injuries. The lost-time injury (LTI) rate, indicating the number of injuries resulting in absence from work per million hours worked, was 4.7 (6.2). Sickness absence remains at a stable, low level of 4.0% (3.9%). The figures are for the last 12 months as at the third quarter.
Please refer to the Board of Director's report for the third quarter of 2015 for additional information.
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
SVP Communications Grete Nykkelmo, tel. +47 91 31 10 00, 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 Q3 2015 |