NCC Q2 - 2020: Profitability increased

Today we released the interim report for the second quarter. NCC is continuing to develop along the track we set out more than a year ago – to build stability by improving profitability and consistency. This quarter our operating profit increased, and all the construction units showed good progress. Industry had a small setback, due to the price of bitumen and some uncertainty around our main supplier that led us to buy larger amounts of bitumen than usual early in the season and at a higher price.

We have a strong order backlog in all business areas. Orders received varies between quarters and the second quarter level is within normal variation. The comparison with 2019 must take into account that we had an exceptional high level of orders received in Denmark in Q2 last year, with several large residential projects in the same quarter. NCC’s cash flow is healthy and substantially improved compared to last year, which is important in our operations and especially in these times.

Even though it has been a most unusual spring for all of us we see no material impact from the corona pandemic on our ongoing projects. The long-term effects on the economy and on us are still hard to assess. NCC is in a good position for the years ahead and can also contribute to society by keeping the wheels turning and activity high.