Veidekke ASA: Good level of activity in property development

Veidekke sold a total of 130 homes in the first quarter of 2014. This is in line with sales in the fourth quarter of 2013. Housing sales are evenly distributed between Norway and Sweden, and there is a high level of activity with a large number of homes in production in both countries.

In Norway we experienced that home sales dropped noticeably toward the end of 2013. The low rate of sales continued into 2014, but toward the end of the first quarter interest and sales have picked up. In Sweden sales have remained stable. In the first quarter of 2014 sales of only four small projects were started. Three in Sweden and one in Norway. The number of new housing projects for sale will increase in the second quarter, which presumably will have a positive effect on housing sales figures.

"We are satisfied that interest in new homes is high in both Norway and Sweden. The number of homes in production in Sweden has increased in recent years, and is approaching the level in Norway. However, we are dependent on an increase in home sales in Norway in the course of 2014 in order to maintain the current level of production," says President and CEO Arne Giske.

Veidekke's property operations in Norway and Sweden sold a total of 130 homes in Q1. The total sales value for the quarter was NOK 481 million, and Veidekke's share was NOK 359 million.

The number of homes in production is 1,586, of which Veidekke's share is 1,175. The combined sales ratio for projects under construction is 73 %.

Residential sales for Veidekke are as follows as of Q1 2014:

Residential sales Gross Q1 2014 (2013) Net Q1 (*) 2014 (2013) Norway 68 (140) 42 (95) Sweden 62 (72) 58 (68) Total 130 (212) 100 (163)

* Veidekke's share of residential sales in collaboration projects and in our wholly-owned projects.

For more information please contact:
Director of business development with Eiendom, Audun Blegen, tel. +47 959 79 664, audun.blegen@veidekke.no
SVP Finance Jørgen Michelet, tel. +47 917 43 856, jorgen.michelet@veidekke.no

 

Veidekke is one of Scandinavia's leading contractors and property developers with a turnover of NOK 21 billion (2013) and 6,300 employees. Activities include building and construction projects, residential developments, asphalt plants, gravel and aggregates, and road services. Our values are professional, honest, enthusiastic and ground-breaking. Our goals for health, safety and the environment, HSE, have equal status with our financial goals. Veidekke is characterised by a strong corporate culture with employee involvement and co-ownership as important cornerstones. More than half of the employees are co-owners, holding around 20 per cent of the Group's shares between them. The company is listed on the Oslo Stock Exchange and has always posted a profit since it was founded in 1936.

 

This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.

This announcement is distributed by Nasdaq OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Veidekke ASA via Globenewswire
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