A very strong third quarter for Veidekke

Thursday, 01. November 2007 08:13

Veidekke's financial results for the third quarter show a turnover of
no less than MNOK 4,850 and a pre-tax profit of MNOK 327. Both
results are 20 per cent higher than for the same quarter last year.

"Veidekke has delivered very strong results for the third quarter,
particularly for our operations in Norway," says President and CEO
Terje R. Venold, pointing out at the same time that orders-on-hand
for the Group's construction operations totalled more than NOK 14

Veidekke achieved a turnover for the third quarter 2007 of MNOK
4,850, compared with MNOK 4,035 for the same period last year. The
Group's operating profit was MNOK 311 (MNOK 248) and pre-tax profit
was MNOK 327 (MNOK 272). This gives earnings per share of NOK 1.8
(NOK 1.3).

Norwegian operations
Veidekke reports very strong quarterly results in Norway. Turnover
was MNOK 3,581
(MNOK 2,750), giving a profit of MNOK 324 (MNOK 239) and a profit
margin of 9 per cent (8.7 per cent). The reduction in house building
is offset by a good market for non-residential buildings, and heavy
construction activity showed a positive trend throughout the quarter.
Property development reflects a slower market, but Veidekke Property
still has a high level of activity, very good profitability and a
sales ratio of no less than 86 per cent. Veidekke Industry also shows
growth in volume and earnings, as a result of good markets for
asphalt, crushed stone and gravel and the division's recycling

For Veidekke's Danish operations, Hoffmann A/S, further write-downs
were required on two projects, and this has led to disappointingly
weak results. In the time ahead some consolidation will be necessary,
not least in view of the fact that the Danish housing market is still
very weak. Hoffmann's turnover for the quarter was MNOK 634 compared
MNOK 786 for the same quarter last year, giving a loss of MNOK 12.7
as against a profit of MNOK 16 last year.

Veidekke's operations in Sweden
The third quarter results for operations in Sweden varied somewhat,
but on the whole the same positive trend continues. The housing
market is good and property operations enjoy a high level of activity
and satisfactory profits. Construction operations in Stockholm and
the Skåne region report good results, while the results in Gothenburg
still show the effect of two weak projects. The order situation in
Sweden is very satisfactory and the influx of new customers and
projects is very encouraging. Turnover rose to MNOK 618 (MNOK 451),
giving a profit of MNOK 26.3 (MNOK 25.4).

Health, safety and environment
Sickness absence for Veidekke has fallen in Norway, while remaining
relatively stable in Sweden and Denmark. The injury rate (lost-time
injuries per million hours worked) was 6.4 (7.3).

Reference is also made to the Board of Directors' Report for the 3rd
Quarter 2007, which is enclosed with this press release.

For further information, please contact:

Terje R. Venold, President & CEO,
tel. +47 21 05 77 01 / +47 905 82 323, terje.venold@veidekke.no

Arne Giske, Executive Vice President, Corporate Finance,
tel. +47 21 05 77 80 / + 47 905 89 526, arne.giske@veidekke.no

Kai Krüger Henriksen, Executive Vice President, Communication,
tel. +47 21 05 77 04 / + 47 905 19 360, kai.henriksen@veidekke.no

Veidekke ASA is a leading Scandinavian building contractor and
property developer with 6,350 employees and an annual turnover of NOK
16.4 billion (2006). Veidekke is listed on the Oslo Stock Exchange.
It has a wide group of shareholders and 15 % of the shares are held
by the company's employees. The company's activities cover a large
range of building and construction contracts, development of housing
and commercial projects for private and public customers, asphalt
operations and road maintenance, and collection and recycling of

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