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

per product area, rolling 12 months

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
1) Refers to sold volume