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
July – September 2019
Net sales for the third quarter 2019 increased by three percent and amounted to SEK 3,820 million (3,723). The increase in net sales stems from the product areas Asphalt, Gravel and Rock, Transportation and Machines and Rentals, while net sales were lower in Construction System.
Operating profit for the third quarter 2019 amounted to SEK 361 million (352) and the operating margin was unchanged with 9.5 percent (9.5). Operating profit includes acquisition costs of SEK 40 million concerning YIT’s paving and mineral aggregates operations.
January – September 2019
Net sales for the period January-September 2019 increased by three percent and amounted to SEK 9,747 million (9,481). 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 period amounted to SEK 575 million (576) and the operating margin contracted to 5.9 percent (6.1). The lower operating margin was due to higher costs in Rentals stemming from some supplemental establishments made to raise local presence that have not yet begun to generate their full revenue capacity. In addition, the business area has been charged with acquisition costs of SEK 40 million concerning YIT’s paving and mineral aggregates operations. The operating margin for the latest rolling 12 month period was 7.2 percent compared to 7.4 percent for the entire year of 2018.
Capital employed in Industry was at the end of the period SEK 7,103 million compared to SEK 6,512 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 100 million per September 30, 2019.
Orders received and order backlog
July – September 2019
Orders received during the third quarter amounted to SEK 1,096 million (1,123).
January- September 2019
Orders received during the period January-September 2019 amounted to SEK 4,371 million (3,562). The increase is primarily related to Asphalt. Order backlog on September 30, 2019 amounted to SEK 2,305 million (2,266).
Net sales
Capital employed, Sep 30, 2019
Key ratios
Jul-Sep 2019 | Jul-Sep 2018 | Jan-Sep 2019 | Jan-Sep 2018 | Oct-Sep 2018/2019 | Jan-Dec 2018 | ||
Jul-sep 2019 | Jul-sep 2018 | Jan-sep 2019 | Jan-sep 2018 | Okt-sep 2018/2019 | Jan-dec 2018 | ||
Net sales, MSEK | Nettoomsättning, Mkr | 3,820 | 3,723 | 9,747 | 9,481 | 13,550 | 13,284 |
Operating profit, MSEK | Rörelseresultat, Mkr | 361 | 352 | 575 | 576 | 976 | 977 |
Operating margin, % | Rörelsemarginal, % | 9.5 | 9.5 | 5.9 | 6.1 | 7.2 | 7.4 |
Orders received, MSEK | Orderingång, Mkr | 1,096 | 1,123 | 4,371 | 3,562 | 5,920 | 5,111 |
Order backlog, MSEK | Orderstock, Mkr | 2,305 | 2,266 | 2,305 | 2,266 | 2,305 | 2,246 |
Capital employed at the end of the period, MSEK | Sysselsatt kapital vid periodens utgång, Mkr | 7,103 | 6,512 | 7,103 | 6,512 | 7,103 | 6,432 |
Number of employees at the end of the period | Antal anställda vid periodens utgång | 3,520 | 3,547 | 3,520 | 3,547 | 3,520 | 3,484 |
Concrete, thousands of m3 1) | Betong, tusentals m3 1) | 350 | 324 | 979 | 923 | 1,350 | 1,294 |
Asphalt, thousands of tons 1) | Asfalt, tusentals ton 1) | 912 | 1,080 | 1,814 | 1,870 | 2,650 | 2,706 |
Gravel and Rock, thousands of tons 1) | Grus och Berg, tusentals ton 1) | 4,413 | 3,684 | 10,940 | 10,329 | 15,292 | 14,681 |