Veidekke showed a turnover for the fourth quarter of 2009 of MNOK 4,066 (MNOK 4,448 for the fourth quarter of 2008), and earnings before tax were MNOK 211.6 (MNOK 252.0). This gives earnings per share of NOK 1.3 (NOK 1.3). The consolidated operating profit for the fourth quarter was MNOK 193,3
(MNOK 190.8). Net financial items were MNOK 16.1 (MNOK -2.2).

At the end of the quarter, orders-on-hand for construction operations totalled BNOK 12.3, as against
BNOK 10.6 at the same time last year.

The Group’s financial position is sound, and the Board of Directors therefore recommends a dividend of
NOK 2.50 per share.

During the course of 2009, the Scandinavian economies have moved from financial crisis and great uncertainty, into recession. In light of this, there is still significant uncertainty attached to the market development in a semi-long-term perspective.

The results for 2009 show that Veidekke has emerged relatively unscathed from the financial crisis, retaining a strong financial position. The organisation’s level of expertise and capacity has been maintained, housing sales has increased, and orders-on-hand have shown a positive development during the quarter.

Construction operations achieved excellent profit margins in 2009, due to good operational management and a favourable cost development in the supplier market. The order backlog showed a steady growth throughout 2009. The main challenge in the times ahead will be to continue focusing on the margin requirements when entering new contracts, and when completing existing projects in a tighter and far more competitive market. A highly competent organisation and several years of improvement work provide an excellent foundation for meeting this challenge.

For property development operations in Norway and Sweden, the fourth quarter reflected increasing sales and the start-up of four projects. There is still a long way to go before reaching the level of activity during the best years, but the tendency is positive. Both in Norway and Sweden, the number of new dwellings being built in central areas is still too low. However, a continued moderate interest rate development and a stable employment rate should mean improved prospects for the near future.

After facing many challenges throughout 2009, industrial operations ended the year on a positive note. Much improvement work has been carried out during the year, and an extended production period for asphalt due to favourable weather conditions, gave growth in volumes and improved profitability.

Construction operations

In Norway and Denmark, the entities are engaged in nation-wide building and construction operations, while operations in Sweden are concentrated in the regions around Stockholm and Gothenburg and in Skåne.

Construction operations had a total turnover of MNOK 3,225 for the fourth quarter (MNOK 3,833 for fourth quarter 2008), and earnings before tax amounted to MNOK 222.9 (MNOK 266.0). The profit margin was 6.9 per cent (6.9 per cent).

Property development

The Property Division is engaged in the development of dwellings for Veidekke’s own account, as well as non-residential buildings for private and public customers. The operations are concentrated around the largest towns in Norway and Sweden, while in Denmark, activities are limited.

In the fourth quarter, property operations in Scandinavia had a turnover of MNOK 227 (MNOK 220). Earnings before tax were MNOK -26.0, as against MNOK 17.0 in the same quarter of 2008. The result reflects the weak housing market and low production level, along with write-downs and sales gains with a net effect of
MNOK 32.

Following a period of extremely low sales and few initiated projects, the housing market has shown a gradual improvement over the last three quarters. The market for used dwellings has been good in the Oslo and Stockholm areas, and advance sales have been satisfactory in the new projects we have placed on the market. This gives cause for optimism, although the market for large blocks of flats is still hesitant in many areas. Several projects will be started up both in Norway and Sweden during the first quarter of 2010.

A total of 182 housing units were sold during the fourth quarter, as against 130 in all of 2008.

Because of the low start-up rate in recent years, property operations only had 311 dwellings under construction at the end of the quarter. In comparison, 638 dwellings were under construction at the same time last year. At the end of the fourth quarter, the Group had a site portfolio corresponding to 7,800 housing units.

Industry operations

The Norwegian Industry Division’s operations are nation-wide and its business areas are asphalt, crushed stone and gravel, road maintenance and recycling of industrial waste. In Sweden, Veidekke has operations within the areas of asphalt, crushed stone and gravel, but at present, these activities are very limited.