Sales up at Peab

Scandinavian contractor Peab reported improved net sales for the second quarter of 2012, despite weak demand in its domestic housing market. Sales totalled SEK21.5 billion (€2.6 billion), up from SEK19.9 billion (€2.4 billion) in 2011.

Operating profit fell to SEK217 million (€26 million) for the three-month period, compared to SEK520 million (€63 million) in the second quarter of 2011. Peab said the figure was impacted by project write-downs of SEK425 million (€51 million) for the quarter.

Orders and backlog held steady, with Peab receiving orders worth SEK21 billion (€2.5 billion) during the period, comparable with 2011 figures of SEK21.3 billion (€2.6 billion).

New contracts won by Peab during the second quarter included a SEK482 million (€58 million) contract to build a new main building at the Swedish University of Agricultural Sciences Ultuna in Uppsala, a SEK460 million (€55 million) road maintenance order with the Swedish Transport Administration, and a SEK400 million (€48 million) contract to expand the Fagernes Terminal at the port of Narvik.

Order backlog in construction and civil engineering amounted to SEK31 billion (€3.8 billion), compared to SEK31.5 billion (€3.8 billion) at the end of the second quarter of 2011.