Veidekke showed a turnover for the third quarter of 2008 of NOK 5,029 million (NOK 4,850 million for the third quarter of 2007). This gave a pre-tax profit of NOK 262.9 million (NOK 327.0 million), and earnings per share after tax of NOK 1.6 (NOK 1.8). The consolidated operating profit for the third quarter was NOK 335.2 million (NOK 311.1 million). Net financial items were NOK -80.8 million (NOK -11.1 million).

Construction operations continue to display good results, while the activities within property development are noticeably affected by a weak market. An increased priority on investments in heavy construction and infrastructure by the authorities, especially in Norway and Sweden, is expected to yield many opportunities in the time ahead – a prospect Veidekke’s asphalt operations may also profit from.

In light of the strong financial unrest and high level of uncertainty in the financial market, Veidekke has in the third quarter, chosen to write down the value of its shareholding in the unlisted company Hansa Property Group ASA by NOK 69 million. This will influence an otherwise strong result.

The Group’s overall order situation is still strong, but shows a marked decline compared with last year. At the end of the quarter, orders-on-hand for construction operations totalled NOK 11.2 billion, as against NOK 13.3 billion at the beginning of the year, and NOK 14.1 billion at the same time in 2007.

From the Nörra Länken project in Stockholm, Sweden

Operations

In Norway, the quarter reflects an excellent result for the construction operations. The decline in house building activities has so far been made up for by increased activities within both public and private non-residential buildings, and also by a strengthened heavy construction sector. In this area, a number of infrastructure projects have been the main contributors to the increased activity, and this is expected to continue in the near future. Property operations have reflected extremely low housing sales, and the division’s resources are now directed towards the active value-added development and improvement of the portfolio of development sites, so that the projects are ready to be initiated when the market recovers.

In Sweden, construction operations are showing a positive development, with particularly good results within building operations in Stockholm, and a boost in construction operations. Within property development, housing sales have also fallen significantly in Sweden, thus reducing the number of new projects being started up.

In Denmark, the construction operations are still affected by capacity adjustments through staff cut-backs, and subsequently lower turnover.