NCC’s operating income was 503 million in the third quarter. Expected was 509 million, according to SME direkt.
net Sales were 13.572 million, against the expected 13.641 million, and order intake was 12.578 million. Snittprognosen lay there on 12.542 million.
NCC took write-downs within its Norwegian operations earlier in October and announced that the operating profit for the third quarter was estimated to be 503 million. Preliminary assessment was 13.6 billion in sales.
Good order intake lifts sales
NCC’s good order intake will begin to have some effect on sales and the outlook for the company’s markets is generally good.
It writes ceo Peter Wågström in the report for the third quarter.
“In the quarter was driven orders primarily of housing and offices, but during the year also of major civil engineering projects”, he writes further with the observation that the NCC has built up order book of 5.7 billion from last year to 47.2 billion crowns.
The increase in orders received is now starting to take effect in sales where the NCC Buildings, net sales increased by 9 per cent in the quarter. NCC Infrastructure increased orders “have not yet produced any effect on the turnover that was in line with the previous year”, he continues.
Regarding the NCC, the Industry called it that the device continues to deliver better than the previous year.
“Both the earnings and the operating margin improved in the third quarter. Sold volumes of aggregates and asphalt was slightly higher than in the previous year, better product mix and the effects of the restructuring measures in Denmark in 2015 is behind the improvement in earnings,” writes Peter Wågström.
He also writes that the NCC group’s selling, general and administrative expenses increased during the year.
“Our ambition is to over time to keep sales and administration expenses were around five per cent of turnover and we are now seeing across the group’s costs, on the basis of this objective”, he writes.