Business area Industry

Business area Industry has the products and services needed to carry out sustainable and cost-​efficient construction and civil engineering projects on the Nordic market. With local roots our companies 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

July – September 2021

Net sales for the third quarter 2021 amounted to SEK 6,198 million (6,233). Net sales in Mineral Aggregates, Concrete and Construction System grew during the quarter while they contracted in Rentals and Transportation and Machines. Net sales in Paving were unchanged during the quarter.

Operating profit was SEK 576 million (471) and the operating margin improved to 9.3 percent (7.6). Peab acquired YIT’s Nordic paving and mineral aggregates operations on April 1, 2020, which was when the season started. Depreciation on surplus values related to customer contracts in taken over order backlog and tangible assets have charged operating profit by SEK -19 million (-96).

January – September 2021

Net sales for January – September 2021 decreased by one percent and amounted to SEK 13,649 million (13,791). Adjusted for acquired operations net sales contracted by three percent compared to the corresponding period last year. Net sales in Mineral Aggregates, Concrete and Construction System grew while they contracted in Rentals and Transportation and Machines. Net sales in Paving were unchanged during the period.

Operating profit amounted to SEK 518 million (708) and the operating margin was 3.8 percent (5.1). Peab acquired YIT’s Nordic paving and mineral aggregates operations on April 1, 2020. The acquired operations have a very clear seasonal pattern which means the first quarter carries considerable deficits since the season starts in the second quarter.

If the acquisition had taken place on January 1, 2020 profit in the first quarter would have been affected by SEK -297 million. Depreciation on surplus values related to customer contracts in taken over order backlog and tangible assets have charged operating profit by SEK -59 million (-159). The comparable period also included acquisition costs and transfer tax of SEK -55 million. In addition, the cold winter has had a negative effect on profit in operations in business area Industry since the season started up later than last year. The operating margin in the latest rolling 12 month period was 4.9 percent compared to 5.9 percent for the entire year of 2020.

Capital employed at the end of the period was SEK 9,764 million compared to SEK 9,529 million at the end of the corresponding period last year.

Orders received and order backlog

July – September 2021

The level of orders received during the third quarter 2021 amounted to SEK 2,012 million (2,175).

January- September 2021

The level of orders received during January-September 2021 increased to SEK 8,313 million (7,077). The comparable period included orders received from the acquired paving and mineral aggregates operations as of April 1, 2020.

Order backlog on September 30, 2021 was SEK 4,427 million (4,076).

Acquisition of Frøseth AS in Trøndelag

Peab strengthened its operations in the Trøndelag area in central Norway through acquisition of Frøseth AS, which works with mineral aggregates, paving, transportation and recycling. Included in the acquisition were 40 employees, nine quarries, an asphalt plant and modern machines and equipment. In 2020 the acquired business had net sales of around NOK 104 million. After approval by the competition authority, the acquisition was finalized on July 1, 2021.