This ambition has been operationalised and translated into concrete margin requirements. The company has as a long term goal to achieve a profit margin (earnings before tax) towards 7 per cent given today’s capital structure. The profit margin in 2011 was 4.2 per cent, and has averaged 4.8 per cent over the past 5 years.
The following long term goals are set for the divisions:
- Construction: 5 per cent profit margin
- Industry: 6.5 per cent profit margin
- Property: A minimum of 15 per cent return on invested capital over an economic cycle.
Veidekke is working with a number of measures to ensure profitability through increased competitiveness. This work consists of risk management and capital rationalisation, as well as participative planning processes and other efficiency improvement measures.
More information about financial goals and results is available in the annual report 2011 (financial report).
