Veidekke’s combined operations in Sweden (construction and property development) had operating revenues for the fourth quarter MNOK 897.3.

In Sweden, Veidekke has established operations in the Stockholm, Gothenburg and Skåne regions.

Construction operations

From the Liljeholmen project in Stockholm

Swedish construction operations showed a total turnover for the fourth quarter of MNOK 835 (MNOK 804). The pre-tax profit was MNOK 17.6 (MNOK 13.6), and this gave a profit margin of
2.1 per cent (1.7 per cent).

Market-wise, the fourth quarter was characterised by decline, intensified by the financial crisis. This was particularly evident within residential and non-residential building, whereas the communication and infrastructure sector is still very strong.

Work on projects is progressing as planned. The level of incoming orders within building operations is low, due to, among other things, the prioritising of profitability over volume. It has proved necessary to implement measures to adjust the resources to a weaker market.

At the end of the fourth quarter, construction operations had orders-on-hand amounting to MNOK 2,479, as against MNOK 2,222 at the end of 2007.

New contracts in the fourth quarter include building a new school for the municipality of Malmö at MSEK 76, production of concrete wall elements for the tunnel at Norra Länken at approx. MSEK 75, and road and bridge works for the Swedish Public Roads Administration at MSEK 67 in Gothenburg.

Property development

From Skälderviken, Stockholm

Operations include the development of housing for Veidekke’s own account, and non-residential buildings for customers in the private and public sectors.

In the fourth quarter, the Property Division achieved a turnover of MNOK 149 (MNOK 230). This gave a pre-tax profit of MNOK 26.8 (MNOK 31.1).

The financial crisis has hit the housing market hard, and during the fourth quarter, only five dwellings were sold (24). This is due partly to lower demand and a weaker ability to pay among customers, and partly to the fact that the division has had relatively few projects for sale.

Following a high level of activity in recent years, the division now has fewer sites ready for sale. But if the housing market improves from 2010 onwards, the division will have many projects that are ready for sale and construction.

In the fourth quarter, the Swedish Property Division, Veidekke Bostad, started up one minor housing project. The share of sold buildings under construction is very high (94 per cent).

At the end of the fourth quarter, the portfolio of development sites in Sweden comprised approx. 3,600 dwelling units, of which two thirds are options to purchase or equivalent. At the end of the quarter, Veidekke Bostad had 453 dwellings under construction. 29 units are unsold, and only three of these are completed.