The overall market situation was stable despite the general economic environment and overall uncertainty, and we received several large, multi-million orders in 2014. Actions to improve the profitability of our project business progressed well.
Highlights of 2014
- The revenue of our project business was EUR 1,109 million (2013: EUR 1,134 million) and accounted for 46% (45%) of our total Group revenue.
- The overall market situation was stable despite the general economic environment and overall uncertainty. In Finland, some of our customers had to postpone their projects, but we were also able to secure some large new deals. In Sweden the project market was stable, and Norway also had a good operating environment in the project market. In Germany demand remained favourable.
- We received several large orders for projects exceeding EUR 10 million in Germany and Norway, and several multi-million contracts also in other countries.
- The actions taken to improve the profitability of project business progressed well. The overall project portfolio was reviewed in all divisions and cost estimates and provisions were revised. Most of the low-performing projects were completed.
- We also developed common project processes, introduced a common operating model and defined new authorisation limits for approving new agreements. In project selection, increasing attention is paid to profitability and risks, and each project phase is monitored more closely. We also developed a common process for sales and harmonised procurement-related practices, processes, and organisations. In divisions special expertise related to demanding projects such as large Design & Build projects will be centralised. In some of the divisions, this new structure was already adopted in 2014.
- Market outlook for 2015: Technical installation business is expected to be stable. Requirements for increased energy efficiency and better indoor conditions and tightening environmental legislation will be significant factors to support positive market development. Large new tenders for buildings and industry are expected to increase during the year. Positive signs can be seen in tendering activity, especially in the public and industrial sectors. Low interest rates and availability of financing are expected to support investments. The demand for design & build of total technical solutions is expected to develop favourably in the large and technically demanding projects.
Henninger Tower, Frankfurt am Main, Germany. Caverion is delivering a total technical solution for the new 40-storey residential building as a technical general contractor. Includes design & engineering, project management and project execution. Value of the deal: EUR 33 million. Read more
Deutsche Rentenversicherung Bund, Germany. Delivery of heating, sanitation, ventilation, cooling, security and safety as well as fire protection systems for the German statutory pension insurance scheme’s administrative building. Includes project execution and project management. Value of the deal: EUR 15.6 million. Read more
Wintershall office, Stavanger, Norway. Total delivery of all technical systems meeting the criteria for the BREEAM NOR standard/Excellent. Includes advisory services, design & engineering, project execution and project management. Value of the deal: EUR 11 million. Read more
Baxter, Krems, Austria. Delivery of building systems, including cleanroom technology, for the industry client Baxter’s production plant. Includes project management and project execution. Value of the deal: > EUR 10 million. Read more
Sør-Trøndelag College, Norway. Total delivery of building systems for the new technology building that is being constructed to meet the passive house standards. Includes design & engineering, project management and project execution. Value of the deal: EUR 9 million. Read more
Huddinge hospital, Stockholm, Sweden. Delivery of heating, sanitation, ventilation and air conditioning systems to the hospital’s new education centre. Includes advisory services, project management and project execution. Value of the deal: EUR 6.8 million. Read more
Puijo hospital, Kuopio, Finland. Delivery of the heating, ventilation, cooling and sanitation systems for the new Säde building. Includes design & engineering, project management and project execution. Value of the deal: EUR 4 million. Read more
Fortum’s nuclear plant, Loviisa, Finland. Installation of the steel structures, industrial piping and electricity and automation systems in the cooling towers. Includes project execution. Value of the deal: EUR 2 million. Read more
EUR 1,134 million)