Financial performance

Turnover in 2008 increased to NOK 1,987 million, up 15 per cent compared to 2007. The operating profit totalled NOK 316 million, which represents an operating margin of 16 per cent. Operating profits and margins of this magnitude are very satisfactory and confirm that this business area has a strong competitive force. Capacity utilisation and product mix have also been good.

The order intake for 2008 totalled NOK 1,886 million. The order reserve was NOK 1,252 million, up 12 per cent from 2007. Demand has been high in all market segments.

The prices of scrap steel and electric power fell considerably towards the end of 2008 from the record prices earlier in 2008. The steel companies use market-based and contractual hedging in order to neutralise any effects of cost fluctuations for raw materials.