Business area Civil Engineering

Business area Civil Engineering is a leading civil engineering supplier in Sweden with operations in Norway and Finland as well. The business area builds and maintains roads, railroads, bridges and other infrastructure. Peab’s civil engineering operations are primarily directed at the local market and are organized in geographic regions and specialized product areas. As of 1 January 2017 Foundation Work has been moved to Civil Engineering from business area Industry.

Local market works with landscaping and pipelines, foundation work and builds different kinds of facilities.

Infrastructure and heavy construction builds roads, railroads, bridges, tunnels and ports. It also builds heavier facilities for industry and the public sector.

Operation and maintenance provides just that for national and municipal highway and street networks as well as care of parks and outdoor property. It also operates sewage and water supply networks.

Net sales and profit

The first quarter is seasonally the weakest quarter in Civil Engineering. Net sales for the first quarter 2017 amounted to SEK 2,388 million (2,029) which was an increase of 18 percent. After adjustments for acquired units net sales increased by 17 percent compared to the same period last year. The increase during the first quarter stems from product areas Local market and Infrastructure.

Operating profit for the first quarter 2017 amounted to SEK 39 million (37) and the operating margin improved to 1.6 percent (1.8). The operating margin for the latest 12 month rolling period was 3.2 percent compared to 3.3 percent for the entire year of 2016.

Orders received and order backlog

Orders received decreased by ten percent during the first quarter 2017 and amounted to SEK 3,800 million (4,221). Two major road projects worth SEK 1 billion each were included in the corresponding period last year.

Order backlog on 31 March 2017 amounted to SEK 10,052 million (9,476).