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Veidekke ASA: Strong growth and improvement in results for Veidekke

The good trend continues for Veidekke. In the first quarter of the year,
turnover was NOK 5.2 billion, which is an increase of 30% compared to last
year. Earnings before tax amounted to NOK 4 million, compared with a NOK 63
million deficit in the same period last year.

"Q1 involves a lot of expenses for Veidekke. We nevertheless see a significant
improvement over last year. Most of the units have seen good progress in the
first three months of the year, and earnings confirm that the measures have
been effective and that 'craftsmanship' is good in the entire Group," says
CEO and President Arne Giske of Veidekke.

Veidekke's turnover in Q1 was NOK 5,228 million (4,049), and earnings before
tax were NOK 4 million (-63). This corresponds to a profit margin of 0.1 per
cent (-1.6). The combined order backlog now totals NOK 18.1 billion (16.8).
The figures are from the segment accounts. Earnings per share was NOK 0.20

"The Scandinavian markets are picking up, and we are particularly pleased that
the Swedish market is back.The improvement is primarily related to a higher
level of activity and better
project margins in construction operations, but also contributions from
project sales and high activity in Swedish property operations," Giske

Construction operations

Construction operations are showing growth and improved margins in Norway,
Sweden and Denmark in the first quarter. Turnover has increased by around
20%, and earnings have almost doubled compared to last year. In Norway growth
was most pronounced in the construction market, while in Sweden it was
greatest in housing and commercial property. The order backlog has dropped
somewhat in Norway due to the housing market, while it has increased
significantly in Sweden and Denmark.

Turnover for construction operations were NOK 4,318 million (3,590) and
earnings before tax were NOK 87 million (46).

Property development
Veidekke's property operations saw an increase in turnover and improvement in
results in Sweden, while an anticipatory housing market has led to a decline
in Norway. Parts of both turnover and earnings in Sweden may be attributed to
project sales. At the end of the quarter Veidekke had 1,179 homes under
construction, compared with 1,381 the previous year. 130 homes were sold,
against 212 the year before, including jointly-owned projects. The sales rate
for projects under construction was 75% (77%), with an increasing level of
interest and sales towards the end of the quarter.

Turnover in property operations was NOK 750 million (406), and earnings before
tax were NOK 77 million (45).

Veidekke saw good results from the public asphalt contracts, and also has a
fair amount of asphalting in major infrastructure projects that are currently
being carried out in Norway. The company has also been awarded several new
five-year contracts for operation and maintenance.

Industrial operations had turnover of NOK 403 million (288) and a negative
result before tax of NOK 141 million (-140).

"The order backlog is record-high before the start of the season, and with an
early start to the season the outlook is good for asphalt operations," Giske

Occupational health, safety and the working environment (HSE)

Veidekke lost one employee in a tragic accident in connection with work on a
cavern garage facility in Sotra at the end of April, and the company will
routinely investigate the accident in cooperation with the Police and Labour
Inspection Authority.

Work on reducing the number of accidents and serious incidents continues and
has top priority, and the LTI rate for the Group (number of injuries with
absence per million hours worked) dropped to 6.3 in Q1 (6,9). S
ickness absence for employees in Norway was 4.7% (4.8%), in Sweden 4.4 %
(3.6%) and in Denmark 1.1% (1.7%). All figures are 12 months rotating as of

Please refer to the Board of Director's report for the first quarter 2014,
which is attached to this press release.

For more information please contact:
President and CEO Arne Giske, tel. +47 21 05 50 00 / +47 90 58 95

CFO Terje Larsen, tel. +47 90 68 78 51,

Communications Director Grete Nykkelmo, tel. +47 913 11

Veidekke is one of Scandinavia's largest contractors and property developers.
The company undertakes all types of building and construction contracts,
maintains roads and produces asphalt, crushed stone and gravel. The company
is characterized by involvement and local knowledge. Turnover is NOK 21
billion (2013), and half of the 6,300 employees own shares in the company.
Veidekke is listed on the Oslo Stock Exchange and has always posted a profit
since it was founded in 1936.

Veidekke - local presence, Scandinavian strength.

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

Report Q1 2014


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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