Financial performance

Net sales

Net sales by segment, IFRS Jan–Dec 2014 Jan–Dec 2013 Change
Infrastructure construction, EUR million 1,339.0 1,279.2 59.8
Building construction, Finland, EUR million 539.0 592.9 -53.9
Russian operations, EUR million 196.1 164.5 31.6
Other operations and eliminations, EUR million -29.6 -16.4 -13.2
Group total, EUR million 2,044.5 2,020.1 24.4
       

In 2014, the Group’s net sales were EUR 2,044.5 million (2,020.1). The impact of currency exchange rate changes on the euro-denominated net sales was EUR -73.2 million compared to the comparison year. The main factors contributing to the increase in net sales were major infra projects in Finland, the paving business in Norway and Denmark as well as residential development projects in Russia. In building construction, competitive contracting in both Finland and Russia decreased.

The Group’s net sales by country in January–December were 52% from Finland, 32% from Scandinavia, 10% from Russia and 6% from the Baltic countries. Net sales by business type were 45% from paving (including road maintenance, mineral aggregates and earthworks), 14% from infra projects and 41% from building construction.


Operating profit

Operating profit by segment FY2014
IFRS
FY2013
IFRS
FY2014
excl. NR
FY2013
excl. NR
Infrastructure construction, EUR million 38.0 -13.1 39.2 -7.4
Building construction, Finland, EUR million 9.3 5.0 13.4 19.1
Russian operations, EUR million 19.7 -0.3 24.0 -0.3
Business segments, total, EUR million 67.1 -8.5 76.7 11.3
Other operations, EUR million -30.8 -80.8 -24.4 -15.2
Group, total, EUR million 36.3 -89.3 52.3 -3.9





Operating margin (%) by segment FY2014
IFRS
FY2013
IFRS
FY2014
excl. NR
FY2013
excl. NR
Infrastructure construction, % 2.8 -1.0 2.9 -0.6
Building construction, Finland, % 1.7 0.8 2.5 3.2
Russian operations, % 10.1 -0.2 12.2 -0.2
Group, total, % 1.8 -4.4 2.6 -0.2

In 2014, the Group’s operating profit was EUR 36.3 million (-89.3). The operating profit includes asset write-downs worth EUR 9.6 million (19.8) and a EUR 6.4 (65.6) damages related to asphalt cartel and associated provision. The 2014 operating profit, excluding non-recurring items, improved clearly and amounted to EUR 52.3 million (-3.9). The impact of currency exchange rate changes on the euro-denominated operating profit was EUR -5.0 million compared to 2013, mainly resulting from the weakening of the external value of the rouble.

The profitability was improved by ongoing major infra projects in Finland, measures to lighten the cost structure and a long paving season in all operating countries. In Russia, the strong result was supported by brisk housing sales especially towards the end of the year and the completion of two residential projects during the second half of the year. In Norway, the result turned clearly positive through overhead reductions and by closing down unprofitable sites and business operations, among other measures. In Building construction in Finland, the development was positive in the first half of the year. However, the profitability for the second half of the year was impaired by the slowdown of housing sales and declining margins in individual projects. The profit development was clearly better in the Helsinki metropolitan area compared to the rest of Finland. The result for 2014 was impaired by expenses related to organisation renewal (approximately EUR 10 million).

Order book

Order book by segment, continuing operations 31 Dec 2014 31 Dec 2013 Change
Infrastructure construction, EUR million 682.6 866.7 -184.1
Building construction, Finland, EUR million 687.1 544.3 142.8
Russian operations, EUR million 86.4 322.2 -235.8
Group, total, EUR million 1,456.1 1,733.2 -277.1
-  of which unsold (residential development projects), EUR million 188.7 346.5 -157.8
       
 

At the end of 2014, the Group’s order book was 16 per cent lower than at the same time in 2013.

The most significant ongoing infra projects in Finland were the Rantaväylä tunnel in Tampere, the underground parking facility in Oulu, the construction of three West Metro stations and the Turvesolmu graded interchange in Espoo. The infrastructure construction order book was impaired by rock engineering in all Nordic countries.

In Building construction, Finland, the order book was increased by major contracting projects, such as the renovation of the Parliament Building and the Sibelius Academy in Helsinki as well as the school campus of timber to be built in Pudasjärvi with the PPP model.

In Russia, the order book was decreased by the completion of two residential development projects (a total of approximately 550 residential units) in late 2014.

Of the order book, 47% came from building construction, 23% from paving (including road maintenance, mineral aggregates and earthworks) and 30% from infra projects. The order book by country was 70% from Finland, 21% from Scandinavia, 6% from Russia and 3% from the Baltic countries.

 
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