Business upturn for Veidekke

Scandinavian contractor and property developer Veidekke has seen an upturn in business in Sweden and Denmark as profits continue to climb.

The Norwegian-based firm posted a 12% increase in turnover for the second quarter of 2014, to record NOK6 billion (€730 million), up from NOK5.4 billion (€655 million) in 2014.

Earnings before tax increased by NOK80 million (€9.7 million) to NOK225 million (€27 million), while the firm’s backlog stood at NOK18.8 billion (€2.3 billion), up marginally from NOK18.3 billion (€2.2 billion) at the same point in 2013.

Arne Giske, president and CEO, said, "Most of our operations have seen good developments and are showing profitability improvements. The order backlog is at a very high level, and our financial position has been further strengthened."

Turnover for construction operations was NOK4.7 billion (€570 million), up from NOK4.3 billion (€520 million) in 2013, while earnings before tax stood at NOK116 million (€14 million), up from NOK87 million (€10.5 million) in the previous year.

"Construction activities increased turnover by 11% in the second quarter, and growth in this quarter came in Sweden and Denmark.

"In Norway, turnover declined somewhat compared to the previous year, while the profit­ margin in Norwegian construction operations increased from 2.7 to 3.4%," said Giske.

Meanwhile, Veidekke's property operations showed stable turnover in the quarter, at NOK422 million (€51.3 million), down slightly on 2013’s NOK 426 million (€51.7 million). Earnings before tax increased to NOK50 million (€6 million) from NOK40 million (€4.8 million) last year.

“Progress is mainly from Norwegian operations, which have achieved good results from projects in the final stages, in addition to other smaller project sales," Giske said.

At the end of the quarter Veidekke had 1,079 homes under construction, compared with 1,300 the previous year.