Veidekke — Earnings Release 2010

Aug 12, 2010

Increased activity and good results for Veidekke

Veidekke increased turnover and earned a profit of MNOK 163 in this year's

second quarter.

"We are pleased with the result given our competitive situation, and now see

more signs of improvement. Increased activity and orders-on-hand for our

construction operations in Norway and Sweden, strengthened housing sales, the

start-up of more new housing units, and better market prospects provide us with

positive opportunities ahead", says CEO Terje R. Venold.

Veidekke's turnover in the second quarter was MNOK 4,327 (MNOK 4,186 in second

quarter 2009). Earnings before tax was MNOK 163 (205 MNOK), earnings per share

were NOK 0.90 (NOK 1.60), and the profit margin ended the quarter at 3.8%

(4.9%). Orders-on-hand for the Group's construction operations now total MNOK

12.3 (MNOK 10.8).

"So far in 2010, Veidekke's results show that we continue to find ourselves in a

difficult market situation with a lot of excess capacity and tough competition.

Overall, as a result of how Veidekke handled the recession, the Group stands

strong today, both organisationally and financially, with the level of activity

as well as developments on the property side showing signs of improvement

compared with previous years", says CEO Venold.

Construction

Turnover in construction operations increased in the quarter, with the increase

coming primarily from the construction segment in Norway and Sweden. Excess

capacity resulted in lower margins in Norway, however, while margins in Sweden

and Denmark improved somewhat. Turnover for total construction activities in the

second quarter was MNOK 3,294 (MNOK 3,088) with earnings of MNOK 110 (MNOK

140). Profit margin came to 3.3% (4.5%).

Property development

The property market around the largest cities in Norway and Sweden - the "family

dwelling" segment in particular - shows a gradual improvement. A total of 159

housing units were sold in the quarter, compared with 107 in the first quarter.

The number of units in production was 614, compared with 310 at year's start.

Sales for Veidekke's property operations in the second quarter totalled MNOK

306 (MNOK 236) with earnings of MNOK 13 (MNOK 2.5).

Industry

A late spring delayed the start of the asphalt season and, combined with a weak

private market, yielded weaker asphalt results. The crushed stone, gravel and

recycling business units achieved satisfactory results which were on par with

2009, while road maintenance still shows a deficit. Total turnover for Veidekke

Industry in this year's second quarter was MNOK 849 (MNOK 876), with an earnings

result of MNOK 48 (MNOK 64).

HSE

Sickness absence for all employees in Norway was 5.5% (5.5%). For all employees

in Sweden, sickness absence 3.1% (2.8%) and for Denmark it was 2.5% (2.1%). The

injury rate (number of lost time injuries per one million hours worked) for the

entire group was 5.4 (4.3) in the second quarter.

See also the Board's report for the second quarter of 2010, attached to this

press release.

For more information contact:

President & CEO Terje R. Venold, tel +47 21 05 77 01 / +47

90 58 23 23,terje.venold@veidekke.no

Executive Vice President / CFO Jørgen W. Porsmyr, tel +47 21 05 76 44 / +47

90 75 90 58, jorgen.wiese-porsmyr@veidekke.no

Communications Director 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/2010/quarter/2/veidekke_in_2_quarter_2010/

VEIDEKKE ASA

Veidekke is one of Scandinavia's largest contracting firms, with 6,000 employees

and revenues of NOK 16 billion. Its business includes building and construction

projects, housing developments, asphalt plants, crushed stone and gravel, road

main­tenance and recycling. Our values are professionalism, honesty, enthusiasm

and innovation. Our goals for health, safety and the environment, HSE, are on a

par 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 of our employees are shareholders; together they

own a 20 % stake in Veidekke. The company is listed on the Oslo Stock Exchange

and has never posted a loss since its founding in 1936.

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

(Norwegian Securities Trading Act)

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