Business area Industry

Business area Industry is a complete supplier of products and services needed in order to carry out construction and civil engineering projects sustainably and cost efficiently.

Business area Industry is run in six product areas; Asphalt, Concrete, Gravel and Rock, Transportation and Machines, Rentals and Construction System. As of 1 January 2017 Foundation Work has been moved to Civil Engineering. All of the product areas work on the Nordic construction and civil engineering markets.

Net sales and profit

July – September 2017

Net sales for the third quarter 2017 contracted slightly, amounting to SEK 3,420 million (3,449).

Operating profit for the third quarter 2017 amounted to SEK 342 million (336) and the operating margin rose to 10.0 percent (9.7).

January – September 2017

Net sales for the period January-September 2017 increased by four percent and amounted to SEK 9,077 million (8,699). Even after adjustments for acquired units net sales increased by four percent. The increase comes from all the product areas except Transportation and Machines, where net sales were the same as the corresponding period last year.

Operating profit for the period January-September 2017 amounted to SEK 565 million (526). Product areas Gravel and Rock, Rentals and Transport and Machines report a better result in comparison with the corresponding period last year while profit contracted in Construction System. The operating margin rose to 6.2 percent (6.0). The operating margin was 6.3 percent during the latest rolling 12 month period compared to 6.2 percent for the entire year of 2016.

Capital employed in Industry at the end of the period amounted to SEK 5,759 million (5,647).

Acquisitions and disposal

Peab has signed a contract to acquire 60 percent of the shares in AB Smidmek Eslöv with the option to acquire the remaining 40 percent. The acquisition complements business area Industry’s existing offer in steel and concrete frames. The company had net sales of SEK 249 million and 29 employees during the financial year 2016/2017. Takeover took place in October 2017.

Peab signed a contract with NCC to divest our foundation operations in Norway which are run under the company Nordisk Fundamentering AS. The business had net sales of NOK 252 million and 102 employees during 2016. Takeover took place in October 2017.

Net sales

per product area, rolling 12 months

Capital employed, 30 September 2017

Key ratios

Jul-Sep
2017		 Jul-Sep
2016		 Jan-Sep
2017		 Jan-Sep
2016		 Oct-Sep
2016/2017		 Jan-Dec
2016
Jul-sep
2017		 Jul-sep
2016		 Jan-sep
2017		 Jan-sep
2016		 Okt-sep
2016/2017		 Jan-dec
2016
Net sales, MSEK Nettoomsättning, Mkr 3,420 3,449 9,077 8,699 12,539 12,161
Operating profit, MSEK Rörelseresultat, Mkr 342 336 565 526 792 753
Operating margin, % Rörelsemarginal, % 10.0 9.7 6.2 6.0 6.3 6.2
Capital employed at the end of the period, MSEK
Sysselsatt kapital vid periodens slut, Mkr
 5,759 5,647 5,759 5,647 5,759 5,416
Number of employees Antal anställda 3,694 3,564 3,694 3,564 3,694 3,385
Concrete, thousands of m3 1) Betong, tusentals m3 1) 299 301 890 794 1,197 1,101
Asphalt, thousands of tons 1) Asfalt, tusentals ton 1) 1,052 1,040 1,884 1,918 2,555 2,589
Gravel and Rock, thousands of tons 1)
Grus och Berg, tusentals ton 1)
 3,956 3,760 10,457 9,173 14,393 13,109

1) Refers to sold volume