Veidekke ASA: Veidekke's Economic Activity Report: Growth outlook for building and construction
"Gradual improvements in the international economy provide a positive change of
pace for the building and construction markets in northern Europe. We expect
total annual growth of 2 per cent in 2014 and 4 per cent 2015 for the
Scandinavian marked," says Rolf Albriktsen, Executive Vice President for
Strategy with Veidekke.
Continued positive outlook in Norway
"Despite lower investments in housing, we expect a good Norwegian building and
construction market with a high level of activity in 2014. Growth will level off
this year, but increase to between 3 and 4 per cent in 2015. While housing
investments decline, investments in commercial buildings and construction will
rise. Even with somewhat weaker growth this year, access to projects throughout
the year will be good for our industry," Albriktsen says.
"We are seeing a decline in the number of started homes ahead, with the
strongest decline in the market for flats. We estimate the figure to be around
28,000 in 2014 and 26,000 in 2015. In terms of housing prices, we expect normal
growth of around 3 per cent in 2014 and 4 per cent in 2015," Albriktsen expands.
In the next three years the Norwegian construction market is expected to
maintain its high level of growth of around 6% for all segments. Within the road
sector significant growth is expected in 2014, dropping to around 4 per cent in
Economic situation improving in Sweden
Swedish GDP growth is expected to pick up 2014, and Veidekke's previous forecast
of between 2.5 and 3 per cent for 2014 and 2015 remains as it is. Both domestic
demand and export are helping growth compared to 2013.
Veidekke expects that the overall Swedish building and construction market will
have a positive boost as a result of the improved economic situation in 2014,
but that growth in the current year will be most pronounced in the housing
segment and more limited for commercial buildings. Shifts in public
infrastructure investments and low capacity utilization in large parts of the
Swedish industry will have a restraining effect. Overall, growth of around 5 per
cent is expected in the Swedish building and construction sector in both 2014
Gradual improvement in Denmark
Growth in the Danish economy in 2014 looks set to aid progress in building and
construction. We estimate that growth in the overall building and construction
market in Denmark will be around 4 per cent in 2014 and 6 per cent in 2015.
"Start-ups of new housing projects are expected to remain at a low level, from
9,000 start-ups in 2013 increasing to 12,500 in 2015. Increased demand entails
that the prices of used homes will continue to rise. For private commercial
buildings there is a view to growth of 3 per cent in 2014, increasing to 8 per
cent in 2015. Within public buildings strong growth of around 10 per cent in
2014 and 2015 is expected to continue," Albriktsen concludes.
For more information please contact:
Rolf Albriktsen, EVP Strategy, tel 21 05 75 71 / 90 69 11 10,
Kristoffer Eide Hoen, Consultant, tel 21 05 77 68/ 97 67 54 34,
Communications Manager Helge Dieset, tel. +47 21 05 77 91 / +47 90 55 33 22,
Veidekke is one of Scandinavia's leading contractors and property developers
with a turnover of NOK 21 billion (2013) and 6,300 employees. Activities include
building and construction projects, residential developments, asphalt plants,
gravel and aggregates, and road services. Our values are professional, honest,
enthusiastic and ground-breaking. Our goals for health, safety and the
environment, HSE, have equal status with our financial goals. Veidekke is
characterised by a strong corporate culture with employee involvement and co-
ownership as important cornerstones. More than half of the employees are co-
owners, holding around 20 per cent of the Group's shares between them. The
company is listed on the Oslo Stock Exchange and has always posted a profit
since it was founded in 1936.
This information is subject of the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.
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Source: Veidekke ASA via GlobeNewswire