Business area Industry
Business area Industry has the products and services needed to carry out sustainable and cost-efficient construction and civil engineering projects on the Nordic market. With local roots our companies take on jobs big and small.
Industry offers everything from mineral aggregates, concrete, paving and temporary electricity to prefabricated concrete elements. Business area Industry also assists with crane and machine rental, distribution of binder to the concrete industry, transportation as well as recycles production waste and excavated soil. The business area is run in six product areas: Mineral Aggregates, Paving, Concrete, Transportation and Machines, Rentals and Construction System.
Net sales and profit
Net sales for the first quarter 2021 amounted to SEK 2,204 million (2,215). Adjusted for acquired and divested operations net sales contracted by 12 percent compared to corresponding period last year. The Swedish operations’ portion of net sales has decreased due to the acquisition of the paving and mineral aggregates operations in 2020.
Operating profit for the first quarter 2021 amounted to SEK -397 million (-66) and the operating margin was -18.0 percent (-3.0). Peab acquired YIT’s Nordic paving and mineral aggregates operations on April 1, 2020. The acquired operations have a very clear seasonal pattern which means the first quarter carries considerable deficits since the season starts in the second quarter. If the acquisition had taken place on January 1, 2020 profit in the first quarter would have been affected by SEK -297 million. Depreciation on surplus values related to customer contracts in taken over order backlog and tangible assets have charged the first quarter 2021 by SEK -20 million. In addition, the cold winter has had a negative effect on operations in business area Industry. The operating margin in the latest rolling 12 month period was 4.1 percent compared to 5.9 percent for the full year 2020.
Capital employed in Industry was at the end of the period SEK 8,871 million compared to SEK 6,399 million at the end of corresponding period last year. The increase is due to the acquired operations.
Orders received and order backlog
Orders received during the first quarter 2021 amounted to SEK 3,302 million (1,399). The increase is due to orders received in the acquired operations. The order backlog on March 31, 2021 amounted to SEK 6,497 million (3,409).
Net sales
Key ratios
| Jan-Mar 2021 | Jan-Mar 2020 | Apr 2020- Mar 2021 | Jan-Dec 2020 | ||
| Jan-mar 2021 | Jan-mar 2020 | Apr 2020- mar 2021 | Jan-dec 2020 | ||
| Net sales, MSEK | Nettoomsättning, Mkr | 2,204 | 2,215 | 18,709 | 18,720 |
| Operating profit, MSEK | Rörelseresultat, Mkr | -397 | -66 | 774 | 1,105 |
| Operating margin, % | Rörelsemarginal, % | -18.0 | -3.0 | 4.1 | 5.9 |
| Orders received, MSEK | Orderingång, Mkr | 3,302 | 1,399 | 11,796 | 9,893 |
| Order backlog, MSEK | Orderstock, Mkr | 6,497 | 3,409 | 6,497 | 3,921 |
| Capital employed at the end of the period, MSEK | Sysselsatt kapital vid periodens utgång, Mkr | 8,871 | 6,399 | 8,871 | 8,822 |
| Average number of employees 1) | Medelantalet anställda 1) | 5,238 | 3,527 | 5,238 | 4,892 |
| Concrete, thousands of m3 2) | Betong, tusentals m3 2) | 266 | 288 | 1,350 | 1,372 |
| Paving, thousands of tons 2) | Beläggning, tusentals ton 2) | 86 | 38 | 8,444 | 8,396 |
| Mineral Aggregates, thousands of tons 2) | Ballast, tusentals ton 2) | 5,396 | 2,885 | 34,740 | 32,229 |
1) Calculated on rolling 12 months
2) Refers to sold volume