| | | | | | MNOK |
| Construction, Sweden | Q2 2009 | Q2 2008 | At 30 June 2009 | At 30 June 2008 | 2008 | 2007 |
| Operating revenues | 631.5 | 744.4 | 1 183.3 | 1 374.8 | 2 801.1 | 2 756.2 |
| Operating expenses | -617.9 | -735.9 | -1 154.2 | -1 357.9 | -2 737.3 | -2 754.6 |
| Depreciation | -5.5 | -4.1 | -10.5 | -6.3 | -17.1 | -9.7 |
| Operating profit (EBIT) | 8.1 | 4.4 | 18.6 | 10.6 | 46.7 | -8.1 |
Share of profit associated
companies and | - | - | - | - | - | - |
| Net financial items | 0.1 | 10.0 | -1.3 | 9.6 | 6.0 | 3.8 |
| Earnings before tax (EBT) | 8.2 | 14.4 | 17.3 | 20.2 | 52.7 | -4.3 |
| Total assets business area | 471.6 | 628.2 | 471.6 | 628.2 | 570.5 | 363.6 |
The Swedish construction operations showed a total turnover for the second quarter of MNOK 632 (MNOK 744 for the second quarter of 2008). Earnings before tax were MNOK 8.2
(MNOK 14.4), which corresponds to a profit margin of 1.3 per cent (1.9 per cent).
In Sweden, the market for infrastructure projects has remained strong throughout the second quarter, especially in the Stockholm area. The housing market is still slow, but there are signs of improvement. The activity within non-residential building remains at a satisfactory level in Stockholm and Skåne, but the competition for new projects is fierce.
Operations in Stockholm achieved good operational and profit margins, whereas both the activity level and profitability in the other regions reflected a decline in orders received in the preceding quarters.
The division has adapted to the market decline by implementing a clear long-term strategy where profitability is prioritised over volume. Operations in Stockholm have increased the order backlog during the quarter, while the other regions need new assignments.
At the end of the second quarter, the Swedish construction operations had orders-on-hand amounting to MNOK 2,727, as against MNOK 2,479 at the turn of the year, and MNOK 2,942 at the same time last year.
New contracts signed in the second quarter, include the first phase of the cross-city light rail line in Stockholm. The contract price is MSEK 440 and the client is Storstockholms Lokaltrafik (SL). Veidekke has also been awarded a contract for a deep-water intake in connection with a nuclear power plant in Oskarshamn at MSEK 125 for OKG AB, and a building containing 127 rental flats and offices for Svenska Bostäder in Annedal, north-west of Stockholm. The contract price for this project is MSEK 230.
