Business area Industry
Business area Industry is a complete supplier of all the products and services needed to carry out a sustainable and cost-effective construction and civil engineering project. Industry offers everything from gravel, sand, concrete, asphalting and temporary electricity to prefabricated concrete elements. Business area Industry also rents out cranes, machines and transportation as well as handles production waste.
Business area Industry is run in six product areas: Asphalt, Concrete, Gravel and Rock, Transportation and Machines, Rentals and Construction System. All the segments operate on the Nordic construction and civil engineering market.
Net sales and profit
The first quarter is seasonally the weakest in Industry due to the winter weather. Net sales for the first quarter 2018 contracted by three percent and amounted to SEK 2,178 million (2,237). Adjusted for acquisitions net sales fell by four percent. The reduction during the quarter is primarily due to product areas Asphalt, Gravel and Rock and Transportation and Machines.
Operating profit for the first quarter 2018 dropped to SEK -38 million (-23). The lower operating profit stems mainly from Asphalt and Gravel and Rock, which as a result of seasonal variations suffered a loss in the first quarter. Result in both Asphalt and Gravel and Rock was lower compared to last year due to a more stringent winter this year. In Rentals profit improved compared to the corresponding period last year. The operating margin for the business area contracted to -1.7 percent (-1.0). The operating margin for the latest rolling 12 month period was 6.7 percent compared to 6.8 percent for the entire year 2017.
Capital employed in Industry was at the end of the period SEK 5,674 million compared to SEK 5,068 million at the end of the corresponding period last year. The increase is primarily attributable to investments in machines.
Orders received and order backlog
Orders received during the first quarter 2018 decreased by 12 percent and amounted to SEK 1,546 million (1,760). Order backlog on 31 March 2018 amounted to SEK 3,563 million (3,459).
Key ratios
| Jan-Mar 2018 | Jan-Mar 2017 | Apr-Mar 2017/2018 | Jan-Dec 2017 | ||
| Jan-mar 2018 | Jan-mar 2017 | Apr-mar 2017/2018 | Jan-dec 2017 | ||
| Net sales, MSEK | Nettoomsättning, Mkr | 2,178 | 2,237 | 12,702 | 12,761 |
| Operating profit, MSEK | Rörelseresultat, Mkr | -38 | -23 | 852 | 867 |
| Operating margin, % | Rörelsemarginal, % | -1.7 | -1.0 | 6.7 | 6.8 |
| Orders received, MSEK | Orderingång, Mkr | 1,546 | 1,760 | 4,938 | 5,152 |
| Order backlog, MSEK | Orderstock, Mkr | 3,563 | 3,459 | 3,563 | 2,533 |
| Capital employed at the end of the period, MSEK | Sysselsatt kapital vid periodens utgång, Mkr | 5,674 | 5,068 | 5,674 | 5,781 |
| Number of employees at the end of the period | Antal anställda vid periodens utgång | 3,417 | 3,416 | 3,417 | 3,452 |
| Concrete, thousands of m3 1) | Betong, tusentals m3 1) | 197 | 258 | 1,160 | 1,221 |
| Asphalt, thousands of tons 1) | Asfalt, tusentals ton 1) | 11 | 29 | 2,601 | 2,619 |
| Gravel and Rock, thousands of tons1) | Grus och Berg, tusentals ton 1) | 2,407 | 2,637 | 14,569 | 14,799 |
1) Refers to sold volume