Peab improves sales and profits

Sweden’s Peab Group recorded third quarter sales of SEK 7,8 billion (€ 765 million), up +5,5% on the SEK 7,4 billion (€ 726 million) reported for the same period last year. In line with increased sales, the Group also recorded positive third quarter operating profits, up +0,5% on the same period in 2007 to SEK 404 million (€ 39,3 million) from SEK 402 million (€ 39 million).

In the Swedish construction area of operation a Peab spokesperson attributed improved profits and margins to the effect of operating a cost-effective organisation. The division recorded sales for the quarter of SEK 4,7 billion (€ 461 million), up + 6,1% on the SEK 4,4 billion (€ 434 million) reported in the same quarter last year. Operating profits for the division increased + 10% from SEK 306 million (€ 29,7 million) in 2007 to SEK 337 million (€ 32,8 million) this year.

“The government’s investment in infrastructure will create strong growth in our public civil engineering businesses,” said Mats Paulsson, Peab CEO. “The infrastructure bill for the years 2010 to 2021 contains significantly higher appropriations than previous infrastructure plans. This is positive for Peab since our civil engineering business is competitive and nationwide,” continued Mr Paulsson.

The civil engineering operations of Peab recorded third quarter sales of SEK 2,3 billion (€ 226 million), up +16,8% on the SEK 1,9 billion (€ 193 million) reported in 2007. Operating profits for the division jumped + 19,8% from SEK 106 million (€ 10,3 million) in 2007 to SEK 127 million (€ 12,3 million) this year.

“Other segments such as new construction and reconstruction are expected to develop positively, primarily due to orders from the public sector,” said Mr Paulsson.