Business area Civil Engineering

Business area Civil Engineering is a leading civil engineering supplier in Sweden with operations in Norway and Finland as well. The business area builds and maintains roads, railroads, bridges and other infrastructure. Peab’s civil engineering operations are primarily directed at the local market and are organized in geographic regions and specialized product areas. As of 1 January 2017 Foundation Work has been moved to Civil Engineering from business area Industry.

Local market works with landscaping and pipelines, foundation work and builds different kinds of facilities.

Infrastructure and heavy construction builds roads, railroads, bridges, tunnels and ports. It also builds heavier facilities for industry and the public sector.

Operation and maintenance provides just that for national and municipal highway and street networks as well as care of parks and outdoor property. It also operates sewage and water supply networks.

Net sales and profit

October – December 2017

Net sales for the fourth quarter 2017 amounted to SEK 3,787 million (3,292) which was an increase of 15 percent. The increase during the quarter stems from product areas Local market and Infrastructure.

Operating profit for the fourth quarter 2017 amounted to SEK 136 million (120) and the operating margin amounted to 3.6 percent (3.6).

January- December 2017

Net sales for 2017 amounted to SEK 11,825 million (10,740) which was an increase of ten percent. After adjustments for acquired units net sales increased by eight percent. The increase during the year stems from product areas Local market and Infrastructure.

Operating profit for 2017 amounted to SEK 374 million (355) and the operating margin was 3.2 percent (3.3).

Orders received and order backlog

October – December 2017

Orders received increased by 106 percent during the fourth quarter 2017 and amounted to SEK 3,393 million (1,648). Construction of a new stage of E20 between Alingsås and Vårdgårda for the Swedish Transport Administration for SEK 539 million was included in orders received.

January- December 2017

Orders received during 2017 amounted to SEK 14,191 million (12,089). Two major road projects worth SEK 1 billion each were included last year.

Order backlog on 31 December 2017 amounted to SEK 10,832 million (8,679).

Acquisitions

Peab signed a contract during the second quarter for the acquisition of Tranab Markbyggnad AB domiciled in Örebro. The company has civil engineering operations in Mälardalen and Närke. In 2016 net sales in Tranab amounted to SEK 264 million and it had 58 employees. The acquisition required approval by the Swedish Competition Authority and takeover took place in the third quarter 2017.

Net sales

per product area, 2017
per geographic market, 2017

Project allocation of order backlog, 31 Dec 2017

Key ratios

Oct-Dec
2017
Oct-Dec
2016
Jan-Dec
2017
Jan-Dec
2016
Okt-dec
2017
Okt-dec
2016
Jan-dec
2017
Jan-dec
2016
Net sales, MSEK Nettoomsättning, Mkr 3,787 3,292 11,825 10,740
Operating profit, MSEK Rörelseresultat, Mkr 136 120 374 355
Operating margin, % Rörelsemarginal, % 3.6 3.6 3.2 3.3
Orders received, MSEK Orderingång, Mkr 3,393 1,648 14,191 12,089
Order backlog, MSEK Orderstock, Mkr 10,832 8,679 10,832 8,679
Number of employees at the end of the period Antal anställda vid periodens utgång 3,344 3,080 3,344 3,080