NCC: Nordic construction market stable

Contractor NCC said demand in the Nordic construction market was stable during the first half of the year after it reported an increase in sales but drop in net profit for the period.

NCC said net sales were up from SEK13 billion (€1.6 billion) in the six months to 30 June last year to SEK14 billion (€1.7 billion) in the first half of 2012. Net profit fell from SEK369 million (€45 million) last year to SEK341 million (€41 million) in the first half of 2012.

The company's construction units in Denmark, Finland and Norway reported improved earnings, with higher volumes and stronger margins. At the same time, earnings in Sweden declined due to impairment losses on projects.

NCC said the construction market was strong in Norway, while demand was weaker in the company's other markets, primarily in Denmark and Finland, resulting in an overall stable picture for the region.

"The market trend is difficult to assess and NCC does not expect construction investments to grow significantly in 2012," the company said.