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Veidekke — Earnings Release 2015
Aug 13, 2015
3781_rns_2015-08-13_f0cff00a-da2b-4939-bc5a-0bc1bb1dcdd8.html
Earnings Release
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Veidekke ASA: Strong results for Veidekke
Veidekke ASA: Strong results for Veidekke
"Major contracts, high residential sales and profit growth marked Veidekke's
results for the second quarter of 2015. Revenue totalled NOK 6.2 billion, while
the profit was NOK 318 million, which is 41% higher than the same period last
year. In addition, the order backlog was at a historical high and 40% higher
than at the end of last year", says President and CEO Arne Giske.
Veidekke's revenue in the second quarter of 2015 amounted to NOK 6.2 billion
(6.0 billion in the second quarter of 2014), and profit before tax was NOK 318
(225) million. This corresponds to a profit margin of 5.1% (3.7%). The combined
order backlog now totals NOK 23.4 (17.6) billion. The figures are from the
segment accounts. Earnings per share (IFRS) was NOK 1.7 (1.4) for the quarter.
Veidekke's construction operations reported revenue of NOK 4.8 (4.7) billion for
the second quarter, and profit before tax was NOK 159 (116) million. "A high
level of activity and good craftsmanship has had a positive impact on our
construction operations. In addition, our work with customers and tenders has
resulted in an historically high order backlog after the quarter. In order to
strengthen our capacity and competence, we have entered into an agreement for
the acquisition of Reinertsen's construction and civil engineering operations in
Norway and Lemminkäinen's operations in Uppsala", says Giske.
The profit before tax for property development operations was NOK 100 (50)
million. Veidekke sold a total of 554 residential units in the quarter at a
value of NOK 2.1 billion. Veidekke's share amounted to 449 (237) units. At the
end of the quarter, there were a total of 1,356 (1,079) residential units under
construction and the sales ratio was an impressive 84% (74%). "The high
residential sales will increase residential production and contribute to a high
level of activity for both property development and construction operations in
the coming quarters", says Giske.
Veidekke s industrial operations reported revenue of NOK 1.1 (1.1) billion and a
profit before tax of NOK 81 (82) million. "Our industrial operations maintained
the same high level of activity and profit as last year. Increased government
investment in transport also provides good growth opportunities for the
aggregate operations", Giske concludes.
Veidekke's long-term OHS work is yielding results, and the number of injuries in
the second quarter showed a marked decline year over year The lost-time injury
rate was 4.1 (6.7), which is the lowest rate ever measured for Veidekke.
Sickness absence remains at a stable, low level of 4.2% (4.2%). The figures are
for the last 12 months as at the second quarter.
Reference is made to the Board of Director's report for the second 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,
CFO Terje Larsen, tel. +47 90 68 78 51, [email protected]
Communications Director Grete Nykkelmo, tel. +47 91 31 10 00,
Veidekke is one of Scandinavia's largest construction and property development
companies. The company undertakes all types of building and construction
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.
This information is subject of the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.
[HUG#1945140]