Positive results for Peab

Sweden's Peab had a +8% increase in sales from SEK 32 billion (€ 2,9 billion) in 2007 to SEK 39 billion (€ 3,6 billion) last year. The figures include the November 2008 reincorporation of Peab Industri into the main Group through a public offering, an acquisition instigated to counter the European economic slowdown.

Alongside increased sales, operating profit for the Group also increased +7% from SEK 1,2 billion (€ 117 million)in 2007 to SEK 1,3 billion (€ 125 million) last year,.

In its construction business, Peab recorded net sales in 2008 of SEK 26,4 billion (€ 2,4 billion), a +4% increase on the SEK 25,4 billion (€ 2,3 billion) reported for 2007. Operating profit for the business dropped -3,5% from SEK 1,1 billion (€103 million) in 2007 to SEK 1 billion (€ 99 million) last year.

In its civil engineering business, the company reported net sales for 2008 of SEK 9,1 billion (€ 846 million), a +15% increase on 2007 sales of SEK 7,9 billion (€ 735 million). Operating profit from civil engineering activities rose from SEK 352 million (€ 32 million) in 2007 to SEK 434 million (€ 40 million) last year, a +23% increase. Operating margin also increased from 4,4% in 2007 to 4,8% last year.

In the reincorporated industry business, including machines, products and services, net sales increased by +16% from SEK 7,4 billion (€ 687 million) in 2007 to SEK 8,6 billion (€ 795 million) last year. Operating profit grew by + 12% from SEK 762 million (€ 70 million) in 2007 to SEK 855 million (€ 79 million) last year.

"2008 was a very good year for Peab," said Mats Paulsson, CEO. "When the full force of the downturn and the seriousness of the problems in the credit markets became apparent we realised that powerful and urgent measures were required. As a result, in November we reincorporated Peab Industri through a public offering, and this has created a Peab that is financially stronger and better industrially aligned to the new market situation," said Mr Paulsson.