Veidekke’s combined operations in Denmark (construction and property development) had operating revenues for the fourth quarter of MNOK 478.7.

Construction operations

Public administration building, Næstved Denmark.

Veidekke’s construction operations in Denmark, Hoffmann AS, had a turnover for the fourth quarter of MNOK 483 (MNOK 783), and a pre-tax profit of MNOK 25.3 (MNOK -32.1). This gave a profit margin of 5.2 per cent (-4.1 per cent).

The result for the fourth quarter is significantly better than the results for the preceding quarters in 2007 and 2008. Ongoing projects are progressing as expected. With the exception of building operations on Zealand, all regions have achieved the targeted results for 2008.

The quarterly result is also affected by a positive clarification of risk in projects where allocations have previously been made.

At the end of the fourth quarter, the company had
orders-on-hand amounting to approx. MNOK 1,298, as against MNOK 1,881 at 31 December 2007.

The present financial and market situation has created difficult conditions for the building industry. This has resulted in planned projects not being started, and has also led to tougher price competition in tendering processes.

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 fourth quarter, the division had a turnover of MNOK 0 (MNOK 15). This gave a pre-tax result of MNOK -17.5
(MNOK -14.1). The result reflects a MNOK 6 write-down of unsold dwellings.

The market for development and sale of housing is weak. Hoffmann Ejendomme has no ongoing projects, and has not sold any dwellings during this 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.