Peab sees Nordic improvement

The Nordic construction market gradually improved in almost every sector during 2010, according to Swedish firm Peab, which has reported results that include a +14% increase in orders received over the year.

CEO and president Mats Paulsson said, "Peab has developed well considering the weak economy we came out of."

He said that the recovery in the Swedish construction market had continued and, in part, accelerated.

"Although the most rapid development has taken place in new construction of apartment buildings, single home construction is also showing good growth," he said. "A high level of start-ups in housing projects is expected to continue in 2011."

He added that new construction of commercial and public premises was also growing rapidly - "primarily a result of swelling employment in the service sector". He reported that the civil engineering market had developed more slowly in 2010 but was expected to pick up in 2011.

The recovery in Finland and Norway was also faster in 2010, said Mr Paulsson, who added that production start-ups in apartment buildings and other building construction had increased significantly.

He said, "Based on our belief in a bright future during the year, we have invested in machinery, supplemental companies, project properties and large development projects."

Peab's orders received during 2010 amounted to SEK 34,8 billion (nearly € 4 billion), compared to SEK 30,4 billion (€ 3,5 billion) in 2009. The order backlog amounted to SEK 27,1 billion (€ 3,1 billion) compared to SEK 24,5 billion (€ 2,8 billion) at the end of 2009.

Peab reported operative operating profit for 2010 of SEK 1,56 billion (€ 178.3 million), compared to SEK 1,6 billion (€ 182,8 million) for the previous year.