Year 2010
6.5.2010
(Interim Financial Review)
According to economic forecasts, Finland’s gross domestic production is expected to return to growth in 2010, but the total volume of construction is still estimated to contract. The number of new building starts will be up on 2009, and housing production in particular is estimated to pick up with the recovery in housing sales. Non-residential construction is likely to remain more subdued than last year. Renovation construction is estimated to continue its steady growth, and demand for technical building services is estimated to remain stable. In Russia the pick-up in the housing market continued in the first quarter and the volume of construction is estimated to grow during 2010.
Most of new major transport infrastructure projects will be underway in 2011 and 2012, but projects already in progress are providing work for infrastructure builders. The recovery of building construction will also improve the employment of infra builders. In Finland the government intends to make further cuts in its investments in basic highway maintenance and it is estimated that the constrained finances of the municipalities may reduce the volume of infrastructure construction this year.
The other Nordic countries have budgeted additional investments on the development of infrastructure construction, which is estimated to keep these markets at a favourable level in the years ahead. The situation in the Baltic states will continue to be challenging.
Demand for building materials follows the building construction cycle, and demand is estimated to pick up with the growing recovery of residential construction in 2010.
Lemminkäinen estimates that net sales and the result before taxes for the 2010 accounting period will be at the 2009 level, the infringement fine imposed by the SAC being excluded from the 2009 comparative figures.
12.2.2010
(Financial Statements)
According to economic forecasts, Finland’s gross domestic product is expected to return to growth and construction activity is expected to increase slightly. Housing sales picked up towards the end of 2009, and they are expected to remain stable in 2010 as well. Non-residential building construction is likely to remain slower than in previous years. Renovation construction will probably continue to grow steadily and demand for technical building services is expected to increase slightly, too. In Russia, the pick-up in the housing market will continue and the volume of construction will probably grow in 2010.
Even though there are no new major transport infrastructure projects in the bid preparation pipeline for 2010, projects already in progress will keep infrastructure builders busy. The pick-up in building construction will also provide work for infra builders. In Finland the government will be making further cuts in its spending on basic highway maintenance, and the weakened finances of the municipalities may also reduce the volume of infrastructure construction in future years.
The additional spending budgeted for infrastructure development in the other Nordic countries will continue, which will keep the markets of those countries favourable in the years ahead. The situation in the Baltic states will continue to be uncertain.
Demand for construction products closely follows the building construction cycle, and demand is expected to rise following the pick-up in residential construction in 2010.
Lemminkäinen estimates that net sales and the result before taxes for the 2010 accounting period will be at the 2009 level, the infringement fine imposed by the SAC being excluded from the 2009 comparative figures.
Updated 6.5.2010