Net sales and profit ¹⁾

Group operative net sales for first quarter 2017 amounted to SEK 11,096 million (8,692), which was an increase of 28 percent. After adjustments for acquired and divested units net sales increased by 27 percent. Adjustments in housing reporting affected net sales by SEK 55 million (-161). Group net sales for the first quarter 2017 increased to SEK 11,151 million (8,531).

Net sales have increased in every business area largely due to the favorable construction and civil engineering market. Net sales grew by 23 percent in business area Construction in all the business area’s regions. Net sales increased by 18 percent in business area Civil Engineering in the segments Local market and Infrastructure. Net sales in business area Industry also rose by 18 percent, where product areas Concrete, Gravel and Rock as well as Rentals generated the largest increases. Net sales in Project Development increased in both Housing Development and Property Development. A number of assets were divested in Arenastaden and Ulriksdal in Solna to Fabege in Property Development, which affected net sales by SEK 577 million.

Of the period’s net sales SEK 1,953 million (1,270) were attributable to sales and production outside Sweden.

Operative operating profit for the first quarter 2017 amounted to SEK 316 million (188) and the operative operating margin improved to 2.8 percent (2.2). The operative operating margin for the latest rolling 12 month period was unchanged at 4.5 percent compared to the entire year 2016. 

The margin in business area Construction was unchanged at 2.2 percent compared to the same quarter last year. The margin in business area Civil Engineering was 1.6 percent (1.8). The result was slightly lower in business area Industry compared to the same period last year. Operating profit in Project Development improved. The margin in Housing Development improved to 8.3 percent (5.7). Capital gains of SEK 75 million from the divestment of a joint venture company which held a number of development properties in Skåne was included in Property Development. The transactions concerning Arenastaden and Ulriksdal had no net effect on profit. The divestitures in Ulriksdal had a positive effect of SEK 180 million on profits while the divestitures of the assets in Arenastaden had a negative effect of SEK 180 million.

Eliminations and reversal of internal profit in our own projects has affected the result net by SEK -10 million (-4). Elimination is reversed in connection with the external divestment of a project. Adjustments in housing reporting affected operating profit by SEK 4 million (-31). Operating profit for the first quarter 2017 was SEK 320 million (157). The operating margin amounted to 2.9 percent (1.8).

Depreciation and write-downs for the period were SEK -217 million (-199).

Net financial items amounted to SEK -9 million (-11). Net interest improved to SEK -15 million (-19), primarily as a result of lower net debt.

Pre-tax profit was SEK 311 million (146).

Profit for the period improved to SEK 277 million (123).

Seasonal variations

Group operations, particularly in Industry and Civil Engineering, are affected by fluctuations that come with the cold weather during the winter half of the year. Normally the first quarter is weaker than the rest of the year.