Bli medlem
Bli medlem

Du är här

2016-10-14

NCC: Impairment losses for projects in Norway

The management teams of the new business areas NCC Building and NCC
Infrastructure have analyzed NCC's Norwegian construction and civil
engineering operations, which has resulted in the recognition of
impairment losses totaling SEK 290 million in the third quarter.
NCC's operating profit for the third quarter is estimated at SEK 503
million (720) for the Group, net sales at SEK 13.6 billion (13.3) and
orders received at SEK 12.6 billion (10.1).

NCC's Norwegian construction and civil engineering operations, which
account for just over 11 percent of NCC's sales, have demonstrated
poor profitability for a number of years. As of January 1, 2016,
NCC's construction and civil engineering operations have been
reorganized into two Nordic business areas: NCC Building and NCC
Infrastructure. The management teams of the new business areas have
now analyzed the Norwegian parts of the operations, which has
resulted in the recognition of impairment losses for projects in the
third quarter. The operating result for these business areas is
thereby estimated to stand at close to zero in the quarter.

Inadequate project management is the underlying reason for the
impairment losses, which largely relate to completed and delivered
projects. Within the scope of the new business area structure, NCC
has allocated resources to strengthen project management activities
in Norway.

"I can say that our turnaround in Norway is taking longer than
expected, but we now have the right organization and processes in
place. We have also allocated resources to improve project management
in Norway. In addition, we are also currently reviewing the Group's
overhead costs. However, orders received and the market outlook were
some of the bright spots in the quarter. Orders received for NCC
increased by 25 percent in the third quarter compared with the
year-earlier period," says Peter Wågström, President and CEO of NCC.

A teleconference will be held today, Friday, October 14, at 9:00 a.m.
NCC's President and CEO, Peter Wågström, and CFO, Mattias Lundgren,
will respond to questions. To participate in this teleconference,
call +46 8 519 993 55 (SE), +44 203 194 05 50 (UK), +1 855 269 26 05
(US) or +49 692 222 339 83 (DE).

All other information related to the third quarter of 2016 will be
presented in NCC's interim report for January-September 2016 on
October 28, 2016.

For further information, please contact:

Mattias Lundgren, CFO NCC, +46 70 228 88 81

Johan Bergman, Head of Investor Relations, NCC, +46 8 585 523 53

NCC's media line +46 8 585 519 00 or press@ncc.se

This is the type of information that NCC is be obligated to disclose
pursuant to the EU Market Abuse Regulation. The information was
issued for publication through the agency of the contact person set
out above on October 14, 2016 at 7:30 a.m. CET.

About NCC Our vision is to renew our industry and provide superior
sustainable solutions. NCC is one of the leading companies in the
Nordics within construction, infrastructure and property development,
with sales, excluding Bonava, of SEK 53 billion and 16,000 employees
in 2015. The NCC share is listed on NASDAQ Stockholm.

-----------------------------------------------------------
http://news.cision.com/ncc/r/impairment-losses-for-projects-in-norway,c2...
http://mb.cision.com/Main/197/2100950/574735.pdf

Författare WKR

Tala om vad ni tycker

Tala om vad ni tycker

Ni är just nu inne på en betaversion av nya aktiespararna. Lämna gärna feedback på vad ni tycker i formuläret nedan.