Veidekka third quarter profits hit

By Steve Skinner06 November 2008

Terje Venold, president and CEO of Veidekke Group

Terje Venold, president and CEO of Veidekke Group

Norway’s Veidekke Group reported third quarter pre-tax profits of NOK 263 million (€ 30 million), down -19% on the NOK 327 million (€ 37 million) reported for the same quarter last year. Revenues for Veidekka were up + 4% for the third quarter from NOK 4,8 billion (€ 555 million) in 2007 to NOK 5 billion (€ 575 million) this year.

In the construction sector of the Group, third quarter revenues of NOK 3,6 billion (€ 414 million) mirrored those of 2007, while pre-tax profit increased +37% from NOK 106 million (€ 12 million) in September 2007 to NOK 145 million (€ 16 million) this year.

The property sector of the Group saw revenues for the period drop by -32% from NOK 531 million (€ 60 million) in the third quarter of 2007 to NOK 360 million (€ 41 million) in the corresponding period this year. Profits for the sector fell -52% to NOK 38 million (€ 4 million) from NOK 78 million (€ 9 million) in the third quarter of 2007.

The industry sector of the Group, which includes asphalt operations, recorded third quarter sales of NOK 1,2 billion (€ 138 million), up +21% on the NOK 988 million (€ 113 million) recorded last year. Profits for the division rose +14% from NOK 131 million (€ 15 million) in 2007 to NOK 149 million (€ 17 million) in the third quarter of 2008.

”The results are somewhat weaker than the same quarter last year, but this is due to the devaluation of the 8,7% shareholding that we have in Hansa Property Group,” said Terje Venold, president and CEO.

”In the third quarter, Norwegian construction operations continued to show significant improvement, with a strengthening of the heavy construction sector and increased activity in non-residential construction off-setting the decline in housebuilding,” said Mr Venold.

”Our industry division also performed well and this can mainly be attributed to asphalt operations,” continued Mr Venold. ”Swedish activity showed positive development in both building operations in Stockholm and in construction operations, while in Denmark housing came to a standstill,” confirmed Mr Venold.
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