Veidekke continues upward trend

Norwegian-based contractor Veidekke posted an increase of 30% in turnover for the first quarter of the year, reaching NOK5.2 billion (€635 million) compared with NOK4 billion (€490 million) in 2013.

Meanwhile, earnings before tax entered the black at NOK4 million (€490,000) compared with a NOK63 million (€7.7 million) deficit at the same time last year.

CEO and president Arne Giske said the first quarter involved a lot of expenses for Veidekke. "We nevertheless see a significant improvement over last year," he said.

"Most of the units have seen good progress in the first three months of the year, and earnings confirm that the measures have been effective and that craftsmanship is good in the entire group."

Veidekke posted a combined order backlog totalling NOK18.1 billion (€2.2 billion), up from NOK16.8 billion (€2.05 billion) in the first quarter of 2013.

"The Scandinavian markets are picking up, and we are particularly pleased that the Swedish market is back. The improvement is primarily related to a higher level of activity and better project margins in construction operations, but also contributions from project sales and high activity in Swedish property operations," said Giske.

The Norwegian contractor saw construction operations improve in Norway, Sweden and Denmark. In Norway, growth was most pronounced in the construction market, while in Sweden it was greatest in housing and commercial property.

Turnover for construction operations were NOK4.3 billion (€525 million), up from NOK3.6 billion (€440 million) in 2013.

Veidekke's property operations saw an increase in turnover and improvement in results in Sweden, while an anticipatory housing market has led to a decline in Norway. At the end of the quarter Veidekke had 1,179 homes under construction, compared with 1,381 the previous year. 130 homes were sold, against 212 the year before.

Turnover in property operations sat at NOK750 million (€92 million), a substantial increase from 2013’s figure of NOK406 million (€50 million).