Showing posts with label Peab. Show all posts
Showing posts with label Peab. Show all posts
Wednesday, 11 July 2012
Peab takes massive write-down on troubled project
Swedish construction company Peab (STO: PEAB B) has been criticized for its project handling of the multi- purpose stadium constructions in Stockholm. The firm now admits that the building of the so called Stockholmsarenan (Tele2 Arena) has proven more complex than it could foresee. This has led to higher costs affecting profitability for around 300 million SEK. In addition to that, Peab is writing down 125 million on the expected profits of two commercial projects in central Oslo. The charges are taken on Q2 2012 accounts due to be published on August 21st. Peab says the completion of the Stockholm Arena with high quality and on time is a top priority.
Tuesday, 3 July 2012
Explosion at a construction site in Espoo injures several
Parts of shopping centre Iso Omena had to be evacuated after a large explosion on a nearby construction work flew rocks into its windows around midday local time today. STT reports that at least 7 people have been injured, one person seriously. Several cars and nearby buildings have also suffered damages. The construction workers were doing foundation work for an office building. The contractor in question is Peab (OMX: PEAB B) while the explosives work was in the hands of a subcontractor. Initial reports suggest that the accident happened due to an improper use of blasting mats but other theories exist as well. Police investigation is ongoing.
Wednesday, 16 May 2012
Peab has sluggish Q1 2012, good order intake
Construction company Peab (STO: PEAB B) had operative net sales of almost 9.9 billion Swedish kronor on (Q1 2011: 8.8), operating profit of 144 million (102) on the seasonally slow first quarter. Earnings per share came in at 0.27 SEK. The margin development was weaker than desired. On the plus side, the company landed several large contracts and orders received of 13.2 billion SEK were a whole 28% higher than last year. The company has a strong market position and is confident it will perform stable in weaker market conditions as well. The building construction start-ups are expected to be slow in Nordic countries this year while civil engineering market remains stable.
The group starts to present in four different business areas that are also operating segments, namely Construction, Civil Engineering, Industry and Property Development. The Annual General Meeting was also held on Tuesday. A dividend of 2.10 SEK per share was approved, and the share will be trading ex-dividend from Wednesday. Board members and committee members were all given double digit pay hikes and the Vice-Chair will be given a near 3 million extra special payment for being at group’s disposal. There is also an ongoing authorization to issue or buy back shares representing up to 10% of current share capital.
The group starts to present in four different business areas that are also operating segments, namely Construction, Civil Engineering, Industry and Property Development. The Annual General Meeting was also held on Tuesday. A dividend of 2.10 SEK per share was approved, and the share will be trading ex-dividend from Wednesday. Board members and committee members were all given double digit pay hikes and the Vice-Chair will be given a near 3 million extra special payment for being at group’s disposal. There is also an ongoing authorization to issue or buy back shares representing up to 10% of current share capital.
Sunday, 13 May 2012
Arenastaden trial: City manager convicted, Peab personnel acquitted
Solna District Court (Solna Tingsrätt) ruled on the so called Arenamålet corruption trial on Friday. Former city manager Sune Reinhold was convicted for taking bribes while the other 4 defendants were found not guilty. Reinhold was convicted for taking improper rewards in the form of consultancy fees totalling 375 000 SEK (over 40 000 Euros). He was given a suspended sentence and a fine.
Other five defendants were acquitted. Many of them are connected to construction company Peab with co-founder Erik Paulsson, former debuty CEO Ander Elfner and two other company employees among those found not guilty. Former Solna Mayor Lars-Erik Salminen was also acquitted of blame. Presiding judge Catarina Barketorp said those found not quilty were acquitted for different reasons but mainly since it could not be established that the defendants had knowingly contributed to extra charges being given to Reinhold in addition to his legitimate work in the project.
Other five defendants were acquitted. Many of them are connected to construction company Peab with co-founder Erik Paulsson, former debuty CEO Ander Elfner and two other company employees among those found not guilty. Former Solna Mayor Lars-Erik Salminen was also acquitted of blame. Presiding judge Catarina Barketorp said those found not quilty were acquitted for different reasons but mainly since it could not be established that the defendants had knowingly contributed to extra charges being given to Reinhold in addition to his legitimate work in the project.
Saturday, 3 March 2012
Arenastaden project and football arena corruption trial
Billionaire Erik Paulsson is one of half a dozen defendants standing trial charged with aggravated bribery in connection with the building of the soon-to be ready national football Arena (Swedbank Arena) in Solna. A ruling is expected within the next several months.
Mr. Paulsson together with his brother Mats Paulsson is the founder of Peab AB (OMX: PEAB B) aka Paulsson Entreprenad Aktiebolag. Together the brothers and the Paulsson family still have a clear majority of votes as one A-share gives 10 votes.
Peab was contracted in 2009 to build the arena for 2.2 billion SEK and also received contracts for adjacent roads and infrastructure worth around 1 billion and for new offices in area worth over 850 million. The project was the largest in company history. In late December 2011 Peab won a 3.5 billion order to build the largest shopping centre in Scandinavia dubbed the Mall of Scandinavia next to the Swedbank Arena. The entire Arenastaden plan is the largest development project in Sweden.
Another defendant Anders Elfner is former deputy CEO of Peab. Company personnel and now former Solna Mayor Lars-Erik Salminen are being accused of giving city Manager and CEO Sune Reinhold nearly a million kronor in bribes. In total four of the company representatives stand trial for gross corruption. The defendants maintain their innocence and expect the trial to clear their name. Mall of Scandinavia contract award became the swansong for Salminen at the healm as Pehr Granfalk replaced him at the turn of the year.
Public sector construction projects are in important part of Peab’s annual revenues. Newspaper Dagens Industri highlighted a difficult situation that might arise if the defendants were found quilty. Should Paulsson is particular be considered a company representative; public tender laws might exclude Peab from bidding. The company spokesman however said they are not worried in the slightest that this might happen for various reasons.
In 2011 Peab had operative net sales of over 44 billion and operating profit just below 1.5 billion. Earnings per share were down to 3.26 and orders during the year climbed 9% to 38 billion. The company aims to be the obvious partner in community building in the Nordic region. For 2011 the Board of Directors is proposing a dividend cut of nearly 20% down to 2.10 SEK per share.
Mr. Paulsson together with his brother Mats Paulsson is the founder of Peab AB (OMX: PEAB B) aka Paulsson Entreprenad Aktiebolag. Together the brothers and the Paulsson family still have a clear majority of votes as one A-share gives 10 votes.
Peab was contracted in 2009 to build the arena for 2.2 billion SEK and also received contracts for adjacent roads and infrastructure worth around 1 billion and for new offices in area worth over 850 million. The project was the largest in company history. In late December 2011 Peab won a 3.5 billion order to build the largest shopping centre in Scandinavia dubbed the Mall of Scandinavia next to the Swedbank Arena. The entire Arenastaden plan is the largest development project in Sweden.
Another defendant Anders Elfner is former deputy CEO of Peab. Company personnel and now former Solna Mayor Lars-Erik Salminen are being accused of giving city Manager and CEO Sune Reinhold nearly a million kronor in bribes. In total four of the company representatives stand trial for gross corruption. The defendants maintain their innocence and expect the trial to clear their name. Mall of Scandinavia contract award became the swansong for Salminen at the healm as Pehr Granfalk replaced him at the turn of the year.
Public sector construction projects are in important part of Peab’s annual revenues. Newspaper Dagens Industri highlighted a difficult situation that might arise if the defendants were found quilty. Should Paulsson is particular be considered a company representative; public tender laws might exclude Peab from bidding. The company spokesman however said they are not worried in the slightest that this might happen for various reasons.
In 2011 Peab had operative net sales of over 44 billion and operating profit just below 1.5 billion. Earnings per share were down to 3.26 and orders during the year climbed 9% to 38 billion. The company aims to be the obvious partner in community building in the Nordic region. For 2011 the Board of Directors is proposing a dividend cut of nearly 20% down to 2.10 SEK per share.
Wednesday, 24 August 2011
Peab's profit down for Q2
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.
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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