Personal construction and civil engineering company Peab AB (STO: PEAB B) (Paulsson Entreprenad Aktiebolag) retreated more than 5% yesterday upon the release of interim numbers. The after tax result of 249 million SEK wasn’t what markets were calculating for: profit numbers were down clearly (operating profit some 15% and net profit more than 20%) compared to Q2 2010 wit.
Second quarter net sales from operations improved 7.2% to a little over 11 billion, so the decline in profits came from margins. CEO Jan Johansson said that profitability from projects received when the economy was slow has proven to be lower than previously estimated. First half of 2011 has seen intense production tempo and a strong inflow of new projects.
Peab envisions itself a truly Nordic company and foresees continued good prospects for Nordic contrusction market. The global turmoil has put Peab on high alert as well, but solid government finances in the markets where Peab is active are supposed to support the economies long term the CEO feels. The share is up by a hair today. Full report is here.
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