Veidekke with a Good End to a Challenging Year
(Thomson Reuters ONE) - Veidekke with a Good End to a Challenging YearVeidekke had a good fourth quarter showing a profit of MNOK 212, while profitfor 2009was MNOK 523."Our construction operations managed to maintain good margins despitesignificantly lower turnover, and our orders-on-hand increased towards the endof the year. Housing production and sales picked up in the fourth quarter, sowe are very pleased with the results for both the fourth quarter and for thewhole 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). Operatingprofit was MNOK 495 (MNOK 796), while earnings before tax was MNOK 523 (MNOK816). The result per share was NOK 3.- (NOK 4.50), and the Board of Directorsproposes a dividend of NOK 2.50 per share (NOK 2.50 in 2008). Orders-on-hand forthe Group's construction operations at year's end was NOK 12.3 billion (NOK10.6 billion).From financial crisis to recession"Fourth quarter results show that Veidekke has come relatively safely throughthe financial crisis. The Group has a strong financial position with a positiveinterest-bearing position of MNOK 101 and equity capital, up by 2.8 points to26.4%, has been strengthened. We also see that orders-on-hand and housing salesare increasing. Our internal improvement processes are paying off, and we havemaintained expertise and capacity in our organisation. I believe therefore thatVeidekke 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 andsickness absence in Norway, which remains high. With three deaths on ourworksites and an increasing injury rate, safety must be at the absolute top ofeveryone's agenda from now on," declared Terje Venold. A good and safe workingenvironment is one of the most important preconditions for profitable and solidgrowth.Construction OperationsDespite a challenging market, Veidekke achieved good earnings in itsconstruction activities as a result of efficient operations and favourable costdevelopments in the supplier market. Norway was again the main engine drivingconstruction operations, but in Denmark and in large parts of Sweden,Construction also achieved very respectable margins. In Sweden, in theGothenburg region in particular, the market is difficult and results are theweakest. Orders-on-hand at year-end increased in Norway by 30 per cent and inSweden by 29 per cent (in local currency), while in Denmark they declinedslightly due to a very difficult market.Construction operations had a total fourth quarter turnover of MNOK 3,225 (MNOK3,833) and a result of MNOK 223 (MNOK 266). The profit margin ended at 6.9% (asfor the previous year). Turnover for all of 2009 was MNOK 12,095 (MNOK 15,534)and profit was MNOK 606 (MNOK 774).Property DevelopmentThe fourth quarter was marked by increasing sales and new initiated projects.Although it is far from the level of activity before the financial crisis, thetrend is positive. 91 dwellings were sold in the fourth quarter in Norway withthe same number in Sweden, while in all of 2008 41 dwellings were sold in Norwayand 86 in Sweden.Fourth quarter sales for Veidekke's Property operations ended at MNOK 227 (MNOK220) with earnings ending the year at MNOK -26 (MNOK 17). For 2009 sales endedat MNOK 711 (MNOK 1,402) with earnings of MNOK -74 (MNOK 19).IndustryIndustry operations, after many challenges in 2009, concluded the yearsatisfactorily. Many improvements were completed during the year, and anextended asphalt production as a result of good weather conditions led to volumegrowth and improved earnings.Veidekke's Industry operation's total turnover for the fourth quarter was MNOK755 (MNOK 719), and earnings were MNOK 8.6 (MNOK -29). Turnover for 2009 wasMNOK 2,968 (MNOK 3,293), while earnings were MNOK 7 (MNOK 68). The decrease inrevenue resulted from the transfer of demolition/plant contracting operations toVeidekke Construction.HSESick leave for all employees in Norway was 5.7% (5.3%). For all employees inSweden, 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 attachedto 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(at)veidekke.no
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Datum: 11.02.2010 - 02:06 Uhr
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