AF Gruppen presents record results
AF Gruppen presents its best quarterly and annual results ever. Profit before tax in the fourth quarter was 131 (67). Preliminary profit before tax in 2008 was MNOK 308 (232).
Operating revenue for the Group in the fourth quarter was MNOK 1.452 (1.558). Operating revenue for 2008 was MNOK 5.805 (5.538).
Efforts to improve margins contribute to good quarterly results in Building. The order backlogs in the units located in the Oslo-area are high, but the economic recession causes reduced demand in Østfold and Sweden.
High activity, efforts to improve margins and completion of several projects provide very strong results in Civil Engineering. There is however a large supply of projects in Civil Engineering with many competitors.
Economic recession and a weak housing market continue to affect Property in the fourth quarter. AF has not started any new projects on own account in Property in 2008.
The results in Environment are influenced by the establishment of international operations and hiring of personnel to meet expected demands..
The business area Energy continues the positive growth in operating revenue and profit. The improved results are mainly due to organic growth and acquisitions. It is expected that the demand for AF's energy-related services will continue to grow
also in 2009
Total order backlog in 2008 was MNOK 4.912 (5.862). The reduction is mainly due to fewer incoming orders in Building and Civil Engineering.
AF Gruppen continues its high focus on health, safety and environment. I 2008, the H-value was 2,3 for the Norwegian part of the Group. The sick absence in 2008 was
4,1 %.
- According to the results, the margin improvements in the core areas and the growth ambitions in Environment and Energy are starting to pay off. The total order backlog for 2008 challenges the business areas differently. Some business areas experience
challenges related to recruiting enough qualified people. Other business areas have challenges with short- and low order backlogs and hence temporary layoffs. We continue to monitor the market closely and adjust accordingly. Our long-term strategy of developing ourselves within our five related business areas remains unchanged", says Pål Egil Rønn, CEO of AF Gruppen.
For Information;
Pål Egil Rønn, CEO, Tel. + 47 22 89 11 00
Sverre Hærem, CFO, Tel. + 47 22 89 11 00
Wibecke Brusdal, Communication Director, Tel. 930 93 150
The presentation can also by viewed by webcast.
