Roads and housing boost NCC results

Nordic contractor NCC reported net revenues of SEK57.8 billion (€6.53 billion) for 2013, up from SEK57.2 billion (€6.46 billion) a year before.

Operating profit was also up year-on-year at SEK2.68 billion (€303 million), compared to SEK1.13 billion (€128 million) in 2012.

Positive results from the company’s roads, property and housing operations during the year offset weaker figures from the core construction businesses that make up the bulk of NCC’s revenues.

NCC Construction Sweden – the largest division in the group by revenues – reported operating profit of SEK637 million (€71.9 million) on sales of SEK21.5 billion (€2.43 billion) for the 12 months to the end of December last year. This compared to operating profit of SEK801 million (€90.5 million) in 2012, on sales of SEK25 billion (€2.83 billion).

Group-wide orders received amounted to SEK56.9 billion (€6.43 billion) at the end of 2013, up from SEK55.8 billion (€6.31 billion) at the same point in 2012. NCC said the year-on-year increase was mainly attributable to a higher number of starts for housing property projects, but also to more projects in its other buildings segment.

NCC CEO Peter Wågström said, “Although the market strengthened during the second half of 2013, the recovery was not as strong as many had hoped. My view of the market remains the same and I believe that the Nordic construction market will grow in 2014.

“The Swedish construction market is relatively stable, but recovery is slow and we prefer to maintain healthy profitability rather than volume. I am not satisfied with the margin in the construction operations. In Denmark, we have demonstrated that earnings can be generated even in a tough market, but margins must increase in the other markets.”