Veidekke reported strong profit growth in the second quarter of 2016 to NOK 450 million and revenue growth of 30% compared with the same quarter last year. In addition, the order backlog increased to a historically high level. "Strong efforts in all our units combined with good markets have given Veidekke a solid quarter," says President and CEO Arne Giske.
Veidekke reported revenue of NOK 8.1 billion in the second quarter of 2016, an increase of NOK 1.9 billion from the second quarter of 2015. The profit before tax was NOK 450 million, an improvement of NOK 132 million compared with the same period last year. The order intake for the quarter was NOK 7.3 billion, giving a total order backlog of NOK 27.3 (23.4) billion. Earnings per share (IFRS) were NOK 2.4 (1.7).
"We have seen strong growth and improved the margins in our construction operations. We have made progress in all countries, with Norway as the most important driver. A high level of activity and good execution have given good results during the quarter," says Giske. Veidekke's construction operations reported revenue of NOK 6.5 (4.8) billion and profit before tax of NOK 228 (159) million for the quarter.
"In the property development operations, high demand and strong interest in our projects have resulted in good sales in both Norway and Sweden, and residential production increased 61% compared with the same quarter last year," Giske continues. A total of 482 (449) residential units were sold during the quarter, 615 units (554) includin g joint venture projects. 2,189 (1,356) residential units were under construction at t he close of the quarter. Profit before tax increased to NOK 161 (100) million as a result of increased production and development gains.
"This year's asphalt season started in the second quarter. The level of activity has been high, with good capacity utilisation and efficient operations," concludes President and CEO Arne Giske. Veidekke's industrial operations reported total revenue of NOK 1.2 (1.1) billion and a profit before tax of NOK 84 (81) million.
Veidekke's overall lost-time injury rate in the first quarter (the number of injuries per million hours worked) was 4.7 (4.1), while sickness absence remains stable and low at 3.5 % (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 2016 for additional information.
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President & CEO Arne Giske, tel. +47 21 05 50 00 / +47 90 58 95 26, email@example.com
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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's operations are characterised by involvement and local knowledge. Revenue is NOK 24.5 billion (2015), and half of the 7,000 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.