Real estate division saps NCC profit

NCC's operating profit for the first half of the year was down -10% compared to the same period last year, to SEK 1138 million (€ 121 million). Its revenues were almost unchanged at SEK 27 billion (€ 2,88 billion).

According to NCC, the fall in profit was mainly attributable to lower earnings from its real estate division, NCC Property Development. However, CEO Olle Ehrlén said there were positive factors at work too.

"Earnings during the current quarter were primarily affected favourably by healthy earnings in NCC Construction Sweden and NCC Roads. In the second quarter we sold more housing than in the year-earlier period in Sweden, Finland and Germany," he said.

The company's order intake was down -3% in the first half of the year compared to the same period last year, to SEK 29,4 billion (€ 3,13 billion).

Commenting on the state of the market, Mr Ehrlén said, "For full-year 2008, some growth is expected in the Nordic construction market but the growth rates will be lower than in 2007. Since NCC is adhering to the assessment that the housing market will weaken we are adopting a catious approach to the start-up of new projects. However, the civil engineering market is expected to be favourable. The conditions for other building production and for aggregates, asphalt and paving are also expected to be favourable for the remainder of 2008."