Veidekke showed a turnover for the fourth quarter of 2008 of MNOK 4,448 (MNOK 5,540 for the fourth quarter of 2007). This gave a pre-tax profit of MNOK 252.0 (MNOK 558.8), and earnings per share after tax of nok 1.3 (nok 3.7). The consolidated operating profit for the fourth quarter was MNOK 190.8 (MNOK 310.1). Net financial items were MNOK -2.2 (MNOK -4.2).

As a result of the general decline in the market and the international financial crisis, the Group’s total backlog of orders has diminished this quarter. This is mainly due to reduced activity and a decrease in orders received from private customers, both for non-residential buildings and new housing projects. At the end of the quarter, orders-on-hand for construction operations totalled nok 10.6 billion, as against nok 13.3 billion at 31 December 2007.

Trollavatn asphalt core dam, Jølster Norway

Operations

Construction operations in all three countries have achieved good results for the fourth quarter, with construction operations in Norway as the main contributor. Operations in Denmark achieved a good result for the quarter, showing a significant improvement compared with the same quarter in 2007. The reasons for this are improved operation, clarification of risk and reversal of allocations for previously completed projects.

For construction operations, the short-term effect of the decline in the market will primarily impact the building area, whereas both the infrastructure area and renovation of public buildings represent significant opportunities ahead. This applies particularly to Sweden and Norway.

Within property operations, the Swedish division continues to display good results for the quarter, while the Norwegian and Danish divisions are affected by a low number of dwellings under construction. Sales of new dwellings in all three countries have been extremely low, and this will impact the level of activity and results in 2009.

The Industry Division showed a weak result for the fourth quarter. This may be attributed mainly to asphalt and road maintenance operations. Due to low profitability in some contracts, it was necessary to make allocations for expected future losses in the area of road maintenance.

As regards asphalt operations, the effect of high oil prices in public budgets for the first three quarters of the year, led to a slowdown in governmental and municipal demand during the fourth quarter.