Business area Civil Engineering

Business area Civil Engineering is a leading civil engineering supplier in Sweden with operations in Norway and Finland as well. The business area builds and maintains roads, railroads, bridges and other infrastructure. Peab’s civil engineering operations are primarily directed at the local market and are organized in geographic regions and specialized product areas. As of 1 January 2017 Foundation Work has been moved to Civil Engineering from business area Industry.

Local market works with landscaping and pipelines, foundation work and builds different kinds of facilities.

Infrastructure and heavy construction builds roads, railroads, bridges, tunnels and ports. It also builds heavier facilities for industry and the public sector.

Operation and maintenance provides just that for national and municipal highway and street networks as well as care of parks and outdoor property. It also operates sewage and water supply networks.

Net sales and profit

April – June 2017

Net sales for the second quarter 2017 amounted to SEK 2,831 million (2,765) which was an increase of two percent. The increase during the second quarter stems from product areas Infrastructure and Operations and maintenance.

Operating profit for the second quarter 2017 amounted to SEK 110 million (105) and the operating margin improved to 3.9 percent (3.8).

January- June 2017

Net sales for the first half-year 2017 amounted to SEK 5,219 million (4,794) which was an increase of nine percent. After adjustments for acquired units net sales increased by eight percent. The increase during the first half-year stems from all product areas but above all from Infrastructure.

Operating profit for the first half-year 2017 amounted to SEK 149 million (142) and the operating margin improved to 2.9 percent (3.0). The operating margin for the latest 12 month rolling period was 3.2 percent compared to 3.3 percent for the entire year of 2016.

Orders received and order backlog

April – June 2017

Orders received increased by 14 percent during the second quarter 2017 and amounted to SEK 3,951 million (3,470). The increase is primarily due to several operations and maintenance contracts received.

January- June 2017

Orders received during the first half-year 2017 amounted to SEK 7,751 million (7,691). Two major road projects worth SEK 1 billion each were included in the corresponding period last year.

Order backlog on 30 June 2017 amounted to SEK 10,974 million (10,203).

Acquisitions

Peab signed a contract during the second quarter for the acquisition of Tranab Markbyggnad AB domiciled in Örebro. The company has civil engineering operations in Mälardalen and Närke. In 2016 net sales in Tranab amounted to SEK 264 million and it had 58 employees. The acquisition requires approval by the Swedish Competition Authority and takeover is planned for the third quarter 2017.