Veidekke stabilises profit margin

Veidekke reported sales for the second quarter of NOK 4,1 billion (€ 486 million), down -24,9% on the NOK 5,5 billion (€ 647 million) recorded for the same quarter last year.

Pre-tax profits for the quarter slipped -28% to NOK 204 million (€ 23 million), down from NOK 284 million (€ 33 million) 12 months ago.

Despite the drop in sales and profits, the company reported a profit margin of 4,9% for the quarter, down marginally on the 5,1% recorded last year.

"The financial crisis has made its mark, but we are pleased that we have managed to maintain good margins, and that we have managed to strengthen our backlog," said Terje Venold, president and CEO.

Order backlog at the end of June stood at NOK 10,8 billion (€ 1,2 billion), down -13% on the NOK 12,5 billion (€ 1,4 billion) reported at the end of the second quarter in 2008.

"The order backlog is growing again after seven quarters of decline," said Mr Venold.

"This is not to say the economic downturn is over, but we are seeing progress in several areas and we are particularly pleased with the increase in sales of housing," he said.

Mr Venold confirmed the company had sold 114 housing units in Norway and Sweden during the second quarter, a marked improvement on the 127 units sold throughout 2008.