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
July – September 2022
Net sales for the third quarter 2022 increased by 14 percent and amounted to SEK 7,096 million (6,198). The increase was primarily related to Paving, Concrete, Transportation and Machines and Construction system. The higher price for bitumen in Paving as well as higher material and energy costs in other product areas have affected prices to customers. Operating profit was SEK 519 million (576) and the operating margin amounted to 7.3 percent (9.3). The lower operating margin is largely due to Paving where higher energy and fuel costs have had a negative effect.
January – September 2022
Net sales for the period increased by 16 percent and amounted to SEK 15,775 million (13,649). Adjusted for acquired and divested units and exchange rate effects, net sales increased by 14 percent. The increase was primarily related to Paving, Concrete and Construction system. The higher price for bitumen in Paving as well as higher material and energy costs in other product areas have affected prices to customers.
Operating profit amounted to SEK 464 million (518) and the operating margin was 2.9 percent (3.8). The operating profit in Paving was lower as a result of higher energy and fuel costs that have not been fully recompensed through higher prices to customers, particularly in Norway, Finland and Denmark. Other product areas in business area Industry reported more or less unchanged or improved profitability.
The operating margin in the latest rolling 12 month period was 4.2 percent compared to 5.0 percent for the entire year 2021.
Capital employed at the end of the period was SEK 10,957 million compared to SEK 9,764 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
July – September 2022
Orders received during the third quarter 2022 increased and amounted to SEK 2,212 million (2,012).
January – September 2022
Orders received during the period increased and amounted to SEK 9,661 million (8,313). Order backlog on September 30, 2022 was SEK 4,325 million (4,427).
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.
Byggelement doubles production capacity of concrete elements
Byggelement, one of Sweden’s leading suppliers of complete frame systems in concrete and prefab concrete elements, invests in close a half billion Swedish kronas to increase production in its plants in Ucklum and Hallstahammar. The factories will thereby become complete suppliers of highly industrialized products and will be able to produce concrete elements with at least 50 percent alternative binder as standard. The expansion in Ucklum is expected to be finished in the fall of 2023 and in Hallstahammar at the end of 2023 – beginning of 2024.
Net sales
per product area, rolling 12 months
per geographic market, rolling 12 months
Key ratios
| Jul-Sep 2022 | Jul-Sep 2021 | Jan-Sep 2022 | Jan-Sep 2021 | Oct-Sep 2021/2022 | Jan-Dec 2021 | ||
| Jul-sep 2022 | Jul-sep 2021 | Jan-sep 2022 | Jan-sep 2021 | Okt-sep 2021/2022 | Jan-dec 2021 | ||
| Net sales, MSEK | Nettoomsättning, Mkr | 7,096 | 6,198 | 15,775 | 13,649 | 20,913 | 18,787 |
| Operating profit, MSEK | Rörelseresultat, Mkr | 519 | 576 | 464 | 518 | 884 | 938 |
| Operating margin, % | Rörelsemarginal, % | 7.3 | 9.3 | 2.9 | 3.8 | 4.2 | 5.0 |
| Orders received, MSEK | Orderingång, Mkr | 2,212 | 2,012 | 9,661 | 8,313 | 11,916 | 10,568 |
| Order backlog, MSEK | Orderstock, Mkr | 4,325 | 4,427 | 4,325 | 4,427 | 4,325 | 3,886 |
| Capital employed at the end of the period, MSEK | Sysselsatt kapital vid periodens utgång, Mkr | 10,957 | 9,764 | 10,957 | 9,764 | 10,957 | 9,266 |
| Operating cash flow, MSEK | Operativt kassaflöde, Mkr | 452 | 299 | -1,016 | -438 | -71 | 507 |
| Number of employees 1) | Antal anställda 1) | 5,101 | 5,141 | 5,101 | 5,141 | 5,101 | 5,110 |
| Concrete, thousands of m3 2) | Betong, tusentals m3 2) | 385 | 351 | 1,008 | 994 | 1,393 | 1,379 |
| Paving, thousands of tons 2) | Beläggning, tusentals ton 2) | 3,283 | 3,039 | 5,598 | 5,384 | 7,645 | 7,431 |
| Mineral Aggregates, thousands of tons 2) | Ballast, tusentals ton 2) | 7,416 | 8,877 | 21,452 | 23,472 | 29,742 | 31,762 |
1) Calculated on rolling 12 months
2) Refers to sold volume