Kvaerner keeps orders flowing in

Kvaerner Construction's orderbook at the end of June was 13 per cent higher than at the start of the year, said chief executive Keith Clarke last week.

Announcing the division's interim results, Clarke said: "We have had an excellent start to this financial year. The quality of the order book is strong and increased efficiency has increased our profit."

Profit before tax in the six months to 30 June was £8 million, well ahead of the wafer-thin figure of £400,000 in the comparable period last year. Turnover climbed steeply to £490 million (£390 million).

Clarke reported strong performances from Kvaerner's UK civils operation, with the UK building wing benefiting from major awards, particularly for design and build.

Internationally, Kvaerner Construction has strengthened its presence in Egypt with two large contracts. Kvaerner has lifted its shareholding in associate company Kvaerner Cementation India to 64 per cent.

In the steel sector, Kvaerner Cleveland Bridge is increasing its presence in Dubai where it is building a new fabrication facility. In Malaysia, the company has taken 100 per cent ownership of its fabrication facility.

In the Specialist Businesses sector, M&E subsidiary Kvaerner Rashleigh Weatherfoil produced "a strong performance", as did ceiling specialist Clark and Fenn and Richard Lees Steel Decking. A spokeswoman confirmed Kvaerner's desire to stay in the M&E sector. "Kvaerner Rashleigh Weatherfoil is one of our golden companies," she said. "We have no desire to shed it."

Two businesses previously in difficulty, Trollope Colls Elliott, the specialist joinery company, and the US subsidiary, Kvaerner Construction, are "turning towards profitability" as a result of action taken by strengthened management.

Kvaerner, the Anglo-Norwegian engineering and shipbuilding group, acquired the UK-based Trafalgar House in 1996. Kvaerner group's interim turnover of £3.1 billion (£2.6 billion) produced a 70 per cent fall in pre-tax profits, down from £63 to £21 million.