Revenue for the first quarter totalled NOK 6.5 billion, an increase of 12% compared with the corresponding quarter of 2016. Profit before tax for the year increased to NOK 60 million from NOK -15 million.The Group had an order backlog of NOK 27.4 billion at the close of the first quarter, up 12% from the beginning of the year. Earnings per share in accordance with the segment accounts was NOK 0.4 (-0.1).
" Veidekke has continued the trend we have seen in recent quarters, with growth in both revenue and profit in the first quarter of the year. Order intake in the quarter was good, and the overall order situation is very satisfactory. Construction operations have had a consistently high level of activity throughout the quarter, but most of the profit growth comes from Property Development," says President and CEO Arne Giske.
Veidekke's revenue in the first quarter amounted to NOK 6.5 (5.9) billion. Most of the growth is in construction operations in Norway and Denmark and property development operations in Sweden. Profit before tax amounted to NOK 60 (-15) million, and the growth was primarily attributable to increased residential production and higher project contributions from property development operations. Earnings per share in accordance with the segment accounts was NOK 0.4 (-0.1).
The Group had an order intake of NOK 9.0 billion in the first quarter, resulting in a total order backlog of NOK 27.4 billion at the close of the quarter.
Revenue from Veidekke's construction operations in the first quarter was NOK 5.8 (5.3) billion. This is an increase of 10% compared with the corresponding period last year. Profit before tax amounted to NOK 125 (107) million. Construction operations in Sweden and Denmark showed profit growth for the quarter, while the profit from the Norwegian construction operations was weaker than in the corresponding quarter last year.
"Construction operations had growth in both revenue and profit in the first quarter. However, profitability remains low in parts of this business area, and a number of measures have been implemented to improve the situation," says Giske.
Revenue from property development operations increased to NOK 725 million from NOK 551 million in Q1 2016. Profit before tax amounted to NOK 135 (55) million. A total of 397 (451) residential units were sold in the quarter, including jointly owned projects. At the end of the quarter, Veidekke had 2,393 units under construction. The overall sales ratio for projects under construction was 91% (93%).
"Residential sales got off to a good start in 2017 and are in line with previous quarters. The high sales ratio in the portfolio reflects the strong market and high level of activity in both Norway and Sweden," Giske continues.
The winter half of the year is low season in the business area Industrial, and revenue in the first quarter was NOK 477 (439) million. Profit before tax amounted to NOK -183 (-180) million. Veidekke's industrial operations did well in this year's competitive tendering for contracts for the Norwegian Public Roads Administration, with higher volumes than in 2016 and winning almost half of the state asphalt contracts.
Veidekke's total lost-time injury (LTI) rate (number of injuries per million hours worked) was 4.2 at the close of the first quarter, down from 4.5 in the previous quarter, but up from 3.9 in Q1 2016. Sickness absence was 4.5% (3.9%)
On 20 April an employee of one of Veidekke's subcontractors lost his life while working on a project in Karmøy. A review team has been set up to investigate the accident and identify the cause.
For press photos, see www.flickr.com/photos/veidekke, for more information, contact:
President and CEO Arne Giske, tel. +47 905 89 526, arne.giske@veidekke.no
SVP Finance Jørgen G. Michelet, tel. +47 917 43 856, jorgen.michelet@veidekke.no
EVP Communications and Public Affairs Lars Erik Lund, tel. +47 413 31 369, lars.lund@veidekke.no
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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 NOK 30 billion, and half of the 7,400 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 to the disclosure requirements pursuant to section 5 -12 of the Norwegian Securities Trading Act.
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