Business area Industry
Business area Industry provides the products and services needed to carry out sustainable and cost-efficient construction and civil engineering projects on the Nordic market. With local roots we 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
Business area Industry has a very clear seasonal pattern where the first quarter is characterized by substantial deficits since the paving season begins in the second quarter.
Net sales for the first quarter 2023 increased by eight percent and amounted to SEK 2,779 million (2,571). Even adjusted for acquired and divested operations and exchange rate effects, net sales increased by eight percent. Net sales increased in most of the product areas in the first quarter compared to the same quarter last year.
Operating profit during first quarter was SEK -435 million (-396) and the operating margin was -15.7 percent (-15.4). The negative operating profit refers to Paving where operations during the first quarter are primarily preparations for the season through maintenance on machines and asphalt plants. The continued high energy and fuel prices have been handled through higher prices to customers as well as adapting and streamlining operations. The operating margin in the latest rolling 12 month period was 3.3 percent compared to 3.5 percent for the entire year 2022.
Capital employed at the end of the period was SEK 10,762 million compared to SEK 9,376 million at the end of the same period last year. The increase stems from investments in machines and production facilities along with more working capital.
Orders received and order backlog
The level of orders was lower primarily due to Peab being more selective about the tenders Paving in Norway submitted, and amounted to SEK 2,689 million (3,835). The order backlog on March 31, 2023 amounted to SEK 6,092 million (7,003).
Net sales
per product area, rolling 12 months
per geographic market, rolling 12 months
Key ratios
| Jan-Mar 2023 | Jan-Mar 2022 | Apr 2022- Mar 2023 | Jan-Dec 2022 | ||
| Jan-mar 2023 | Jan-mar 2022 | Apr 2022- mar 2023 | Jan-dec 2022 | ||
| Net sales, MSEK | Nettoomsättning, Mkr | 2,779 | 2,571 | 21,641 | 21,433 |
| Operating profit, MSEK | Rörelseresultat, Mkr | -435 | -396 | 708 | 747 |
| Operating margin, % | Rörelsemarginal, % | -15.7 | -15.4 | 3.3 | 3.5 |
| Orders received, MSEK | Orderingång, Mkr | 2,689 | 3,835 | 11,642 | 12,788 |
| Order backlog, MSEK | Orderstock, Mkr | 6,092 | 7,003 | 6,092 | 4,273 |
| Capital employed at the end of the period, MSEK | Sysselsatt kapital vid periodens utgång, Mkr | 10,762 | 9,376 | 10,762 | 10,807 |
| Operating cash flow, MSEK | Operativt kassaflöde, Mkr | -390 | -442 | -466 | -518 |
| Average number of employees | Medeltal antal anställda | 3,814 | 3,881 | 4,694 | 4,761 |
| Concrete, thousands of m3 1) | Betong, tusentals m3 1) | 263 | 276 | 1,336 | 1,349 |
| Paving, thousands of tons 1) | Beläggning, tusentals ton 1) | 120 | 100 | 7,205 | 7,185 |
| Mineral Aggregates, thousands of tons 1) | Ballast, tusentals ton 1) | 4,230 | 5,074 | 28,103 | 28,947 |
1) Refers to sold volume