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 season begins in the second quarter.

April – June 2022

Net sales for the second quarter 2022 increased by 16 percent and amounted to SEK 6,108 million (5,247). The increase was primarily related to Paving, Concrete and Construction system. Operating profit was SEK 341 million (339) and the operating margin amounted to 5.6 percent (6.5). Higher prices for bitumen in Paving and for input goods in other product areas have in general been regulated in pricing to customers but have had a negative effect on the operating margin.

January – June 2022

Net sales for the first half-year 2022 increased by 16 percent and amounted to SEK 8,679 million (7,451). Adjusted for acquired operations and exchange rate effects, net sales increased by 15 percent. The increase was primarily related to Paving, Concrete and Construction system. Higher prices for bitumen in Paving and for input goods in other product areas have in general been regulated in pricing to customers but have had a negative effect on the operating margin.

Operating profit amounted to SEK -55 million (-58) and the operating margin was -0.6 percent (-0.8). Operating profit in Mineral Aggregates and Rentals improved while it contracted in Paving and Transportation and Machines. During the first quarter Paving had higher costs for maintenance and staff as a result of expanded operations. The operating margin in the latest rolling 12 month period was 4.7 percent compared to 5.0 percent for the entire year 2021.

Prices for material and energy have risen considerably during 2021 and the first part of 2022. We have handled the price hikes as well as delivery disturbances through adjusting and streamlining operations, but there has been a negative effect on the operating margin.

Capital employed at the end of the period was SEK 10,807 million compared to SEK 9,388 million at the end of the corresponding period last year. The increase is mainly explained by the increase in working capital and machine investments.

Orders received and order backlog

April – June 2022

Orders received during the second quarter 2022 increased and amounted to SEK 3,614 million (2,999).

January – June 2022

Orders received during the first half-​year 2022 amounted to SEK 7,449 million (6,301). Order backlog on June 30, 2022 was SEK 6,973 million (6,509).

Acquisition of Asfaltti-​System Oy

On July 1, 2022 Peab acquired Asfaltti-​​System Oy, a company in Kouvola in southern Finland that works with manufacturing components and maintenance in the asphalt and concrete industry. The acquisition strengthens Peab Industry’s maintenance and service operations. Net sales in the acquired company were EUR 4.4 million in the fiscal year 2021/2022 and the company has 35 employees. Asfaltti-System Oy will provide services to Peab’s Nordic operations in both asphalt and factory concrete.