Veidekke remains optimistic despite latest results

By Becca Durrant11 February 2010

Terje Venold, president and CEO at Veidekke

Terje Venold, president and CEO at Veidekke

Veidekke's construction division has reported a -16 % decline in its fourth quarter sales for 2009 to NOK 3,22 billion (€ 398 million) from NOK 3,83 billion (€ 473 million) during the same period in 2008.

The division made a pre-tax profit of NOK 223 million (€ 27 million) down - 16 % on the NOK 266 million (€ 32,8 million) recorded in the fourth quarter of 2008.

Meanwhile, the construction division reported total sales of NOK 12 billion (€ 1,48 billion) for 2009, a -22,1% decline compared to the previous year's NOK 15,5 billion (€ 1,91 billion). The business recorded pre-tax profits of NOK 606 million (€ 75 million) in 2009, a - 22 % fall compared to the NOK 774 million (€ 95 million) recorded in 2008.

In a statement the company said despite a challenging market Veidekke achieved good earnings in its construction activities as a result of efficient operations and favourable cost developments in the supplier market.

Norway was the main engine driving construction operations, but in Denmark and in large parts of Sweden, the division also achieved "very respectable" results.

Terje R Venold, Veidekke's president and CEO said, "Our construction operations managed to maintain good margins despite significantly lower turnover, and our orders-on-hand increased towards the end of the year.

"Housing production and sales picked up in the fourth quarter, so we are very pleased with the results for both the fourth quarter and for the whole of 2009."

Overall Veidekke as a group saw revenues fall by - 19,8 % for the full year 2009 to NOK 15,5 billion (€ 1,91 billion), while pre-tax profits for the year totalled NOK 523 million (€ 64 million), down - 36 % compared to the full year 2008.

MAGAZINE
NEWSLETTER
Delivered directly to your inbox, Construction Europe Newsletter features the pick of the breaking news stories, product launches, show reports and more from KHL's world-class editorial team.
More News from Construction Europe
Loxam accelerates environmental shift
Equipment rental company aims to halve direct emissions by 2030 and cut indirect emissions by 30%
Construction starts on Milan’s renewable offices
New CityWave building will put ‘quality of life’ first and aims to have a “positive impact” on the environment
New HBOX+ lighting tower from Himoinsa
HBOX+ is designed for efficiency, connected remote control, safety and easy transport
CONNECT WITH THE TEAM
Mike Hayes Editor, Construction Europe Tel: +44 (0)1892 786 231 E-mail: mike.hayes@khl.com
Simon Kelly Sales Manager Tel: +44 (0) 1892 786 223 E-mail: simon.kelly@khl.com
CONNECT WITH SOCIAL MEDIA