Veidekke showed a turnover for the first quarter of 2009 of MNOK 3,325 (MNOK 4,337 for the first quarter of 2008), and earnings before tax were MNOK -133.5 (MNOK 16.0). This gives earnings per share of NOK -0.8 (NOK 0.1). The consolidated operating profit for the first quarter was MNOK -102.0 (MNOK 3.8). Net financial items were MNOK -25.7 (MNOK -1.8).

At the end of the quarter, orders-on-hand for construction operations totalled BNOK 9.9, as against
BNOK 10.6 at the end of 2008, and BNOK 13.3 at the same time last year.

The Group has a strong financial position with a net interest-bearing position of MNOK -162 (MNOK -260 at 31 December 2008).

Construction operations

The most positive development seen in the first quarter is that most of the construction operations are maintaining good margins, despite decreasing volumes. The decline in the backlog of orders is flattening out, but for some entities, the start-up of projects is being hindered by the fact that certain customers are experiencing financing problems. However, new infrastructure projects and other public building and construction projects partly compensate for the slump in the private sector.

The Norwegian regulations for temporary lay-offs make it much easier to maintain flexibility and competitive strength in Norway than in Sweden and Denmark. So far, dismissals have for the most part been avoided in Norway. In Sweden and Denmark, however, a lower level of activity has made dismissals necessary, and staff has been reduced by approx. 20 per cent.

Property development

Veidekke's activity within property development is characterised by the weak housing market in all three countries. Reduced sales mean lower production, and thus weaker figures. Towards the end of the first quarter, there were some signs of improvement, although volumes were still low. Norway and Sweden are planning to launch a number of new housing projects during the last half of 2009.

In the first quarter, the shares in the property company Hansa Property Group ASA were written down by a further MNOK 13. The shares in the company are thereby valued at MNOK 3.

Industry operations

The Industry Division showed a very weak first quarter result. This can mainly be ascribed to two factors: The segments crushed stone/gravel and recycling have experienced a volume reduction of almost
30 per cent within the private sector. In addition, the result within industry operations was reduced by a further MNOK 27 due to a need for adjustments and restructuring of the asphalt operations in Mid-Norway. It has proved necessary to write down both projects and stocks in this region.

Below is a more in-depth description of the Group's various areas of activity.