Divisions
HOCHTIEF Americas Division
| (EUR million) | H1 2010 |
H1 2009 (restated)* |
Percentage change |
Q2 2010 |
Q2 2009 (restated)* |
Full year 2009 (restated)* |
|---|---|---|---|---|---|---|
| New orders | 3,380.1 | 3,438.2 | –1.7 | 1,753.7 | 1,544.5 | 5,752.9 |
| Work done | 3,092.5 | 3,547.7 | –12.8 | 1,727.8 | 1,784.8 | 6,729.7 |
| Order backlog | 8,893.6 | 8,212.8 | 8.3 | 8,893.6 | 8,212.8 | 7,098.3 |
| Divisional sales | 2,931.5 | 3,497.2 | –16.2 | 1,644.4 | 1,759.3 | 6,614.4 |
| External sales | 2,931.5 | 3,497.2 | –16.2 | 1,644.4 | 1,759.3 | 6,614.4 |
| Operating earnings (EBITA) | 55.3 | 52.6 | 5.1 | 30.8 | 26.4 | 110.1 |
| Profit before taxes | 49.1 | 42.1 | 16.6 | 27.6 | 21.0 | 93.5 |
| Capital expenditure | 60.3 | 16.4 | 267.7 | 42.8 | 7.3 | 21.9 |
| Net assets | 622.7 | 488.5 | 27.5 | 622.7 | 488.5 | 494.0 |
| Employees | 7,470 (End H1 2010) | 8,943 (End H1 2009) | –16.5 | 7,470 (End Q2 2010) | 8,943 (End Q2 2009) | 8,500 (2009 average) |
The HOCHTIEF Americas division delivered a solid second quarter. New orders in the first half of the year were just slightly down on the prior-year period at EUR 3.38 billion. This includes positive exchange rate effects in the amount of EUR 57.5 million resulting from the appreciation of the US dollar. Work done fell short of the prior-year figure by EUR 455.2 million or 12.8 percent. The decline reflected weaker new orders in US building construction business in the preceding months due to the global financial crisis. Thus divisional and external sales also fell short of the prior-year levels. By contrast, the order backlog was once again very high, reaching EUR 8.89 billion. This figure includes a positive exchange rate effect of EUR 1.17 billion.
Both operating earnings and profit before taxes increased substantially year on year. Profit before taxes was up 16.6 percent on the prior year, at EUR 49.1 million, partly due to positive exchange rate effects of EUR 1 million and mainly to improvements in operations.
The increase in capital expenditure is attributable to the acquisition of E.E. Cruz. Despite the addition of around 140 employees to the division through this acquisition, the total number of employees fell sharply compared with the prior year. This was due primarily to the sale of the majority of our interests in HOCHTIEF do Brasil at the end of 2009.
Turner once again reasserted its position as the country’s number one general builder in the second quarter. Our projects include building an 844-seat concert hall at Stanford University in California. The university will be able to use the new EUR 55 million hall from 2013.
Turner has also secured a further public sector contract. Together with a consortium partner, the company is to build a new hotel for the Franklin County Convention Facilities Authority in Columbus, Ohio. The four-star, 532-room hotel linked directly to the Greater Columbus Convention Center will be completed to green building standards by 2012. The contract is worth EUR 77 million.
Turner, the US market leader in sports facility construction, has been selected to renovate and expand PGE Park in Portland, Oregon. Home to the Portland Timbers soccer team, the stadium is to gain a sports training and rehabilitation facility, covered stands and a playing field to FIFA standards. The contract is worth EUR 23 million.
In civil engineering, Flatiron secured a major new contract to build a ring road in Saskatchewan, Canada, together with a partner. Flatiron accounts for EUR 75 million of the EUR 165 million contract. In addition to the seven-kilometer ring road around the City of Saskatoon, the contract also includes work on a bridge, a number of railway grade separations, and sound walls.
In addition, Flatiron and a joint venture partner won the competitive bidding for a North Carolina Department of Transportation contract. We are to build a new eight-lane bridge over the Yadkin River near Charlotte and widen a threemile stretch of the road. The contract is worth a total of EUR 114 million.
HOCHTIEF has further expanded its position in the US infrastructure market with the targeted acquisition of contractors E.E. Cruz. The company specializes in heavy construction projects in the New York metropolitan area. It was integrated into the Group as a joint subsidiary of Flatiron and Turner with retroactive effect as of January 1, 2010. The three companies will extend their position together in the award of coming capital investment contracts.
HOCHTIEF Americas outlook
Given the strong order backlog and the new projects expected we continue to anticipate an increase in profit before taxes for the HOCHTIEF Americas division for fiscal 2010 compared with the prior year.