Veidekke remains optimistic despite latest results

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.