Veidekke’s combined operations in Denmark (construction and property development) had operating revenues for the third quarter of MNOK 505.3

Construction operations

Construction operations in Denmark

Veidekke’s construction operations in Denmark, Hoffmann AS, had a turnover for the third quarter of NOK 501 million (NOK 624 million), and a pre-tax profit of NOK -0.1 million
(NOK -11.5 million). This gave a profit margin of 0.0 per cent
(-1.8 per cent).

The results of the projects are developing as anticipated. All regions, except building operations on Zealand, show satisfactory profitability despite a lower level of activity brought about by the increasing financial unrest in Denmark during the third quarter.

As regards the building operations on Zealand, this year has been strongly influenced by the turnover of projects which were written down in 2007. During the year, adjustment and consolidation of the operations have been effected. In September, resources were adjusted to the current level of activity by reducing the number of officials in the enterprise by 15 per cent. Expectations for the remainder of the year include a balanced result.

At the end of the third quarter, the company had orders-on-hand totalling NOK 1,164 million as against NOK 1,881 million at the beginning of the year, and NOK 2,433 million at the same time last year.

Property development

Property development in Denmark

Veidekke’s Property Division in Denmark, Hoffmann Ejendomme, is engaged in development and sale of housing projects for its own account.

In the third quarter, the Property Division achieved a turnover of NOK 7 million (NOK 27 million). This gave a pre-tax profit of
NOK -8.5 million (NOK -1.2 million).

The market for development and sale of owner-occupied dwellings has come to a stand-still in Denmark, and Hoffmann Ejendomme has not sold any dwellings in the third quarter.

The portfolio of development sites constitutes 600 dwelling units. The division has no projects under production, but has 17 completed dwellings which remain unsold.