Lower first-quarter earnings for NCC

Lower first-quarter earnings for NCC

NCC's earnings for the first quarter, which is a seasonally weak period,
will be weaker this year than in the year-earlier period. The decline is
due to such factors as the weak business climate in 2009 when few
development projects were started and when tenders were subject to
severe price competition. Market conditions for 2011 are favorable.
Orders received during the first quarter are at a healthy level and the
order backlog increased approximately SEK 3 billion during the quarter. 
This news will be presented in CEO Olle Ehrlén's address to the Annual
General Meeting today, April 13.

In his address, Olle Ehrlén will give an account of operations in 2010,
but will also present the following comments regarding the market
scenario in 2011 and the early part of the year.

“The construction industry is late in the economic cycle and our order
backlog still contains a number of contracts signed during tough times.
As a result of upturn in the economy, we are experiencing cost pressure
in several markets and for several products. This situation had limited
effects during 2010 - but we noted its impact on margins in early 2011,
primarily for NCC Construction Sweden.

“Due to this factor, combined with another severe winter with a great
deal of snow, which resulted in higher production costs, as well as few
handovers of profit-generating development projects, we have had a
difficult start to 2011. However, NCC increased the number of
proprietary housing starts during 2010, which will have a positive
effect on earnings later this year.

“The market situation in 2011 is favorable. Orders received in the first
quarter were healthy. They were admittedly lower than in the
year-earlier period but exceeded worked-up revenues, whereby the order
backlog rose about SEK 3 billion during the quarter.”

The entire presentation will be available on NCC's website,
www.ncc.se/AGMmaterial (http://www.ncc.se/AGMmaterial) after the close
of the Annual General Meeting.

NCC's interim report for the first quarter of 2011 will be published on
May 5.

The information is such that NCC AB is obligated to publish pursuant to
the Securities Market Act. The information was submitted for publication
on April 13, 2011 at 8:00 a.m. CET.

For further information, please contact:
Ann-Sofie Danielsson, Chief Financial Officer, NCC AB, +46 (0)70-674 07
20.
Annica Gerentz, Senior Vice President Corporate Communications, tel. +46
(0)70-398 42 09.
Johan Bergman, Investor Relations Manager, tel. +46 (0)8-585 523 53, +46
(0)70-354 80 35

NCC media line: +46 (0)8-585 519 00, E-mail: press@ncc.se (press@ncc.se)