NCC's operating profit for the third quarter will be negatively impacted by the economic situation, driven primarily by the asphalt operations in the Industry business area. Unrelated to this, a small number of residential projects in
"The majority of our projects and businesses are performing well despite strong inflation and economic turbulence. However, the asphalt operations have faced major challenges since we have been unable to fully offset increased costs during the third quarter despite drastic price increases toward our customers. We also have individual construction projects where project management has been inadequate," says
Industry business area
Rising costs, primarily for energy, and the resulting lower volumes are having an impact on the asphalt operations, most clearly in
Earnings in the business area are also impacted by the need for additional pension payments to the pension foundation for the Swedish companies to compensate for the increase in debt, mainly because changed discount rate and lower equity value in the pension foundation due to declining stock markets.
Overall, NCC estimates that the Industry business area will report an operating result of around zero for full-year 2022. Operating result for the January-June period was
The business area has a comprehensive action plan in place to continue to manage high costs by conversion of asphalt plants, adaptation of capacity and extensive dialogue with customers.
Contracting operations
Third-quarter earnings for 2022 in the
In contracting operations in general (
For purely administrative reasons, the planned profit recognition of the sale of land in Järva Krog to
Repurchase program
Despite the items affecting cash flow above, NCC expects a favorable cash flow for the rest of the year. The ongoing share repurchase program will continue as planned. As of
Teleconference for investors and analysts today at
At
Link to audiocast: | https://ncc-live-external.creo.se/conference-call |
Participation by telephone: |
SE: +46 8 505 100 31 US: +1 631 570 56 13 |
All other information related to the third quarter of 2022 will be presented in conjunction with the publication of NCC's interim report for the third quarter and the January-
For further information, please contact:
Tove Stål, Head of Group External Relations NCC, +46 76 521 61 02
NCC's media line: +46 8 585 519 00, press@ncc.se, NCC's Media bank
This is the type of information that
About NCC. NCC is one of the leading construction companies in the Nordics. Based on its expertise in managing complex construction processes, NCC contributes to a positive impact of construction for its customers and society. Operations include commercial property development, building and infrastructure project contracting, and asphalt and stone materials production. In 2021, NCC had sales of about
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