Business area Industry
Business area Industry is a complete supplier of the products and services needed to carry out a sustainable and cost-efficient construction and civil engineering project on the Swedish, Norwegian and Finnish markets. Industry offers everything from gravel and rock material, concrete, asphalting and temporary electricity to prefabricated concrete elements. Business area Industry also assists with crane rental, import and distribution of binder to the concrete industry, machines and transportation as well as recycles 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 product areas operate on the Nordic construction and civil engineering market.
Net sales and profit
The first quarter is usually the weakest in Industry due to the winter weather. Net sales for the first quarter 2019 increased by two percent and amounted to SEK 2,230 million (2,178). Even adjusted for acquisitions net sales increased by two percent.
Operating profit for the first quarter 2019 dropped to SEK -44 million (-38). Lower profit is explained by the fact that larger operations generate higher maintenance costs, particularly in Asphalt. The operating margin for the business area contracted to -2.0 percent (-1.7). The operating margin for the latest rolling 12 month period was 7.3 percent compared to 7.4 percent for the entire year 2018.
Capital employed in Industry was at the end of the period SEK 6,322 million compared to SEK 5,674 million at the end of the corresponding period last year. The increase is primarily attributable to investments in machinery. The effect of additional IFRS 16, Leases was SEK 99 million per 31 March 2019.
Orders received and order backlog
Orders received during the first quarter 2019 amounted to SEK 2,280 million (1,546). The increase is primarily related to Asphalt. Order backlog on 31 March 2019 amounted to SEK 3,981 million (3,563).
Net sales
Capital employed, 31 March 2019
Asunto Oy Jerikon Kräätäri
Seinäjoki, Finland
Key ratios
| Jan-Mar 2019 | Jan-Mar 2018 | Apr-Mar 2018/2019 | Jan-Dec 2018 | ||
| Jan-mar 2019 | Jan-mar 2018 | Apr-mar 2018/2019 | Jan-dec 2018 | ||
| Net sales, MSEK | Nettoomsättning, Mkr | 2,230 | 2,178 | 13,336 | 13,284 |
| Operating profit, MSEK | Rörelseresultat, Mkr | -44 | -38 | 971 | 977 |
| Operating margin, % | Rörelsemarginal, % | -2.0 | -1.7 | 7.3 | 7.4 |
| Orders received, MSEK | Orderingång, Mkr | 2,280 | 1,546 | 5,845 | 5,111 |
| Order backlog, MSEK | Orderstock, Mkr | 3,981 | 3,563 | 3,981 | 2,246 |
| Capital employed at the end of the period, MSEK | Sysselsatt kapital vid periodens utgång, Mkr | 6,322 | 5,674 | 6,322 | 6,432 |
| Number of employees at the end of the period | Antal anställda vid periodens utgång | 3,443 | 3,417 | 3,443 | 3,484 |
| Concrete, thousands of m3 1) | Betong, tusentals m3 1) | 258 | 197 | 1,355 | 1,294 |
| Asphalt, thousands of tons 1) | Asfalt, tusentals ton 1) | 19 | 11 | 2,714 | 2,706 |
| Gravel and Rock, thousands of tons 1) | Grus och Berg, tusentals ton 1) | 2,460 | 2,407 | 14,734 | 14,681 |