MNOK
Construction Denmark	Q4 2009	Q4 2008	2009	2008	2007
Operating revenues	384.3	482.6	1 618.5	2 073.0	2 779.6
Operating expenses	-366.1	-458.1	-1 578.3	-2 066.3	-2 879.9
Depreciation	-2.2	-2.6	-9.7	-9.7	-9.3
Operating profit (EBIT)	16.0	21.9	30.5	-3.0	-109.6
Share of profit associated companies and joint ventures	1.4	0.4	1.4	0.7	0.6
Net financial items	1.8	3.0	13.7	15.5	20.9
Earnings before tax (EBT)	19.2	25.3	45.6	13.2	-88.1
Total assets business area	867.0	641.1	867.0	641.1	644.8

In the fourth quarter, Veidekke’s Danish construction operations, Hoffmann, had a turnover of MNOK 384 (MNOK 483), and earnings before tax totalled MNOK 19.2 (MNOK 25.3). This corresponds to a profit margin of 5.0 per cent (5.2 per cent).

In spite of an extremely challenging market, the operations have managed to maintain the positive level of earnings and profit from the preceding quarters, due to good project profitability.

There is still a strong focus on the order backlog, in order to achieve new contracts to be executed in 2010 and 2011. The project profitability requirement stands firm. The division’s resources will be continuously assessed based on the market conditions.

One focus area which is given special priority is the increasing bankruptcy risk among our cooperating partners. This represents a challenge when it comes to completing projects and maintaining project profitability.

At the end of the fourth quarter, the company had orders-on-hand totalling MNOK 978, as against
MNOK 1,298 at the same time last year. The number of incoming orders has declined throughout the year, as a result of continued delays in the start-up of public building projects.

New contracts signed in the fourth quarter include the renovation of housing units in Skovengen at MDKK 60, construction of an office building in Karberghus, Zealand, at MDKK 41, and construction of the Vojens IS Arena ice drome in Jutland at MDKK 96. Veidekke is also building a health centre in Thors bakke, Jutland, amounting to MDKK 156.