Annual report 2012 - Peab

BOARD OF DIRECTORS’ REPORT
BUSINESS AREA CIVIL ENGINEERING
The Norwegian operations have developed
well during the year. The Swedish business
model has been implemented and the
exchange of experience has intensified.
Among other things, Swedish production
management has worked in Norway. Two
important projects during the year have
been the extension of the harbor in Narvik
and major road construction outside Trondheim
for Statens Vegesen.
Capacity in Finland has been adjusted
to current demand. Implementation of the
Swedish model has also been prioritized.
Roger Linnér who has worked at Peab
since 1996, mostly in Civil Engineering,
took over after Tore Nilsson, who was
previously Business Area Manager, on
1 January 2013.
Important projects and events
Handling iron and granite as well as
goods at LKAB’s mine Gruvberget in
Svappavaara will continue until September
2014.
Construction of a test facility for traffic
safety at AstaZero outside Borås.
Several major highway projects were
underway during the year: Two stages of
E6 in Bohuslän as well as Österleden in
Helsingborg, E4 Sundsvall, Väg 22
between Rolsberga and Fogdarp in Skåne
and the first major road project in Norway
- E6 outside Trondheim.
Several contracts were signed with the
Swedish Transport Administration for the
operation and maintenance of roads in
some fifty different operational areas in
the middle of Sweden.
Peab Operation & Maintenance, a new
national brand, was created to clarify and
draw attention to Peab’s offer in the area
of road maintenance.
Peab was commissioned by the Swedish
Transport Administration in February 2013
to extend the railroad line Barkaby–Kallhäll
which is part of the Mälarbanan project.
22 PEAB ANNUAL REPORT 2012
Roger Linnér, Business Area Manager Civil Engineering
Strategic priorities
•
•
•
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Continued work on improving profitability through stricter cost control,
regular reviews of our offer and better tendering procedures.
Higher personal responsibility for making sure regulations for a safe work
environment, which also has a direct effect on profitability, are followed.
Better cost efficiency through specialization in selected market segments
and tailored, effective support functions.
Greater flexibility to better handle variations in demand.
Civil engineering for
growing transportation
For years now necessary railroad extensions
have not been made even though the advantages
of this form of transportation are many, particularly
in regards to sustainability, and therefore
investments in railroads are expected to pick up.
Peab has been commissioned by the Swedish
Transport Administration to build a new doubletrack
stretch of the railroad between Motala and
Mjölby that will augment the capacity and punctuality
of trains. This includes building bridges and
developing the station area.
Net sales
MSEK
15,000
12,000
9,000
6,000
3,000
0
2008
2009
2010
2011
2012
THE MARKET AND FORECASTS
Civil engineering construction in Sweden
has gone against the trend in building
construction and developed well in 2012.
This is due to private and government
investments in developing and maintaining
public infrastructure.
Civil engineering construction in Norway
developed favorably in 2012 as well.
In Finland the total volume of civil engineering
in 2012 was unchanged compared
to the previous year.
Key ratios 2012 2011
Net sales, MSEK 12,643 11,554
Operating profit, MSEK 440 390
Operating margin, % 3.5 3.4
Orders received, MSEK 12,729 11,350
Order backlog on 31 December, MSEK 8,610 8,526
Number of employees 3,553 3,664
Development 2012 vs 2011
Local market
Net sales Operating profit
Operations and maintenance
Infrastructure and heavy construction
Operating profit and margin
MSEK
500
400
300
200
100
0
2008
2009
2010
2011
2012
Operating profit Operating margin, %
%
5
4
3
2
1
0