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

April – June 2019

Net sales for the second quarter 2019 increased by three percent and amounted to SEK 3,697 million (3,580). The increase in net sales stems from the product areas Asphalt, Gravel and Rock and Concrete, while net sales were lower in Construction System.

Operating profit for the second quarter 2019 amounted to SEK 258 million (262) and the operating margin contracted to 7.0 percent (7.3). The lower operating margin stems to a certain extent from seasonal effects, primarily in Asphalt. In addition, Rentals sustained higher costs from the establishment of complementary units aimed at increasing local presence that do not yet generate maximum income.

January – June 2019

Net sales for the first half-year 2019 increased by three percent and amounted to SEK 5,927 million (5,758). Even adjusted for acquisitions net sales increased by three percent. Net sales increased in all product areas except Construction System where net sales fell.

Operating profit for the first half-year 2019 dropped to SEK 214 million (224) and the operating margin contracted to 3.6 percent (3.9). The lower operating margin stems to a certain extent from seasonal effects, primarily in Asphalt, where larger operations generate higher maintenance costs. In addition, Rentals sustained higher costs from the establishment of complementary units aimed at increasing local presence that do not yet generate maximum income. The operating margin for the latest rolling 12 month period was 7.2 percent compared to 7.4 percent for the entire year 2018.

Capital employed in Industry was at the end of the period SEK 6,930 million compared to SEK 6,279 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 108 million per June 30, 2019.

Orders received and order backlog

April – June 2019

Orders received increased by eleven percent during the second quarter and amounted to SEK 995 million (893). The increase is primarily related to Asphalt.

January- June 2019

Orders received during the first half-year 2019 amounted to SEK 3,275 million (2,439). The increase is primarily related to Asphalt. Order backlog on June 30, 2019 amounted to SEK 3,172 million (2,904).

Net sales

per product area, rolling 12 months

Capital employed, June 30, 2019

Key ratios

Apr-Jun
2019
Apr-Jun
2018
Jan-Jun
2019
Jan-Jun
2018
Jul-Jun
2018/2019
Jan-Dec
2018
Apr-jun
2019
Apr-jun
2018
Jan-jun
2019
Jan-jun
2018
Jul-jun
2018/2019
Jan-dec
2018
Net sales, MSEK Nettoomsättning, Mkr 3,697 3,580 5,927 5,758 13,453 13,284
Operating profit, MSEK Rörelseresultat, Mkr 258 262 214 224 967 977
Operating margin, % Rörelsemarginal, % 7.0 7.3 3.6 3.9 7.2 7.4
Orders received, MSEK Orderingång, Mkr 995 893 3,275 2,439 5,947 5,111
Order backlog, MSEK Orderstock, Mkr 3,172 2,904 3,172 2,904 3,172 2,246
Capital employed at the end of the period, MSEK
Sysselsatt kapital vid periodens utgång, Mkr
6,930 6,279 6,930 6,279 6,930 6,432
Number of employees at the end of the period
Antal anställda vid periodens utgång
3,658 3,533 3,658 3,533 3,658 3,484
Concrete, thousands of m3 1) Betong, tusentals m3 1) 372 402 629 599 1,324 1,294
Asphalt, thousands of tons 1) Asfalt, tusentals ton 1) 883 780 902 791 2,817 2,706
Gravel and Rock, thousands of tons 1) Grus och Berg, tusentals ton 1) 4,067 4,237 6,527 6,644 14,564 14,681
1) Refers to sold volume