Veidekke — Earnings Release 2009

Feb 11, 2010

Veidekke with a Good End to a Challenging Year

Veidekke with a Good End to a Challenging Year

Veidekke had a good fourth quarter showing a profit of MNOK 212, while profit

for 2009

was MNOK 523.

"Our construction operations managed to maintain good margins despite

significantly lower turnover, and our orders-on-hand increased towards the end

of the year. Housing production and sales  picked up in the fourth quarter, so

we are very pleased with the results for both the fourth quarter and for the

whole of 2009", said Terje R. Venold, Veidekke's President and CEO.

Veidekke's turnover in 2009 was MNOK 15,558 (MNOK 19,395 in 2008). Operating

profit was MNOK 495 (MNOK 796), while earnings before tax was MNOK 523 (MNOK

816). The result per share was NOK 3.- (NOK 4.50), and the Board of Directors

proposes a dividend of NOK 2.50 per share (NOK 2.50 in 2008). Orders-on-hand for

the Group's construction operations at year's end was NOK 12.3 billion (NOK

10.6 billion).

From financial crisis to recession

"Fourth quarter results show that Veidekke has come relatively safely through

the financial crisis. The Group has a strong financial position with a positive

interest-bearing position of MNOK 101 and equity capital, up by 2.8 points to

26.4%, has been strengthened. We also see that orders-on-hand and housing sales

are increasing. Our internal improvement processes are paying off, and we have

maintained expertise and capacity in our organisation. I believe therefore that

Veidekke is well positioned for 2010, which will be also a challenging year,"

added Venold.

"What I am least satisfied with in 2009 is the injury rate development and

sickness absence in Norway, which remains high. With three deaths on our

worksites and an increasing injury rate, safety must be at the absolute top of

everyone's agenda from now on," declared Terje Venold. A good and safe working

environment is one of the most important preconditions for profitable and solid

growth.

Construction Operations

Despite a challenging market, Veidekke achieved good earnings in its

construction activities as a result of efficient operations and favourable cost

developments in the supplier market. Norway was again the main engine driving

construction operations, but in Denmark and in large parts of Sweden,

Construction also achieved very respectable margins. In Sweden, in the

Gothenburg region in particular, the market is difficult and results are the

weakest. Orders-on-hand at year-end increased in Norway by 30 per cent and in

Sweden by 29 per cent (in local currency), while in Denmark they declined

slightly due to a very difficult market.

Construction operations had a total fourth quarter turnover of MNOK 3,225 (MNOK

3,833) and a result of MNOK 223 (MNOK 266). The profit margin ended at 6.9% (as

for the previous year). Turnover for all of 2009 was MNOK 12,095 (MNOK 15,534)

and profit was MNOK 606 (MNOK 774).

Property Development

The fourth quarter was marked by increasing sales and new initiated projects.

Although it is far from the level of activity before the financial crisis, the

trend is positive. 91 dwellings were sold in the fourth quarter in Norway with

the same number in Sweden, while in all of 2008 41 dwellings were sold in Norway

and 86 in Sweden.

Fourth quarter sales for Veidekke's Property operations ended at MNOK 227 (MNOK

220) with earnings ending the year at MNOK -26 (MNOK 17). For 2009 sales ended

at MNOK 711 (MNOK 1,402) with earnings of MNOK -74 (MNOK 19).

Industry

Industry operations, after many challenges in 2009, concluded the year

satisfactorily.  Many improvements were completed during the year, and an

extended asphalt production as a result of good weather conditions led to volume

growth and improved earnings.

Veidekke's Industry operation's total turnover for the fourth quarter was MNOK

755 (MNOK 719), and earnings were MNOK 8.6 (MNOK -29).  Turnover for 2009 was

MNOK 2,968 (MNOK 3,293), while earnings were MNOK 7 (MNOK 68). The decrease in

revenue resulted from the transfer of demolition/plant contracting operations to

Veidekke Construction.

HSE

Sick leave for all employees in Norway was 5.7% (5.3%). For all employees in

Sweden, sick leave was 3.1% (3.0%), and in Denmark 2.4% (2.2%). The injury rate

(number of lost-time injuries per million hours worked) for the Group was 5.7

(4.5) as of fourth quarter.

See also the Board's report for on the fourth quarter of 2009, which is attached

to this press release.

For more information contact:

President and CEO Terje R. Venold, Tel. +47 21 05 77 01 / +47 90 58 23 23,

terje.venold@veidekke.no

CFO Jørgen W. Porsmyr, Tel. +47 21 05 76 44 / +47 90 75 90 58,

jorgen.wiese-porsmyr@veidekke.no

Director Communications and Public Affairs Kai Krüger Henriksen, Tel. +47

21 05 77 04 / +47 90 51 93 60, kai.henriksen@veidekke.no

See also:

http://www.veidekke.com/reports/2009/quarter/4/veidekke_in_4_quarter_2009/

VEIDEKKE ASA

Veidekke ASA is a leading Scandinavian contractor and property developer with

6 000 employees and an annual turnover of NOK 15.6 billion (2009). The Group is

listed on the Oslo Stock Exchange and has a broad ownership structure, under

which the employees own 19.3per cent of the shares. The Group's operations cover

a wide range of building and construction contracts, the development of housing

and non-residential buildings for private and public sector clients, asphalt

operations and road maintenance, as well as the collection and recycling of

waste.

This information is subject of the disclosure requirements acc. to §5-12 vphl

(Norwegian Securities Trading Act)

[HUG#1383305]