HOCHTIEF Asia Pacific Division
| (EUR million) | H1 2010 | H1 2009 | Percentage change |
Q2 2010 | Q2 2009 | Full year 2009 |
|---|---|---|---|---|---|---|
| New orders | 7,928.8 | 4,116.0 | 92.6 | 6,897.6 | 2,329.3 | 12,418.5 |
| Work done | 5,908.2 | 4,567.0 | 29.4 | 3,235.4 | 2,575.2 | 9,645.2 |
| Order backlog | 27,083.4 | 18,095.6 | 49.7 | 27,083.4 | 18,095.6 | 22,132.7 |
| Divisional sales | 5,062.2 | 3,756.7 | 34.8 | 2,589.4 | 1,997.0 | 7,771.3 |
| External sales | 5,062.0 | 3,756.5 | 34.8 | 2,589.3 | 1,996.9 | 7,771.1 |
| Operating earnings (EBITA) | 320.4 | 261.4 | 22.6 | 197.7 | 166.0 | 535.6 |
| Profit before taxes | 247.4 | 213.1 | 16.1 | 151.6 | 141.9 | 432.9 |
| Capital expenditure | 522.2 | 342.0 | 52.7 | 379.5 | 214.8 | 782.2 |
| Net assets | 3,003.9 | 2,175.1 | 38.1 | 3,003.9 | 2,175.1 | 2,592.7 |
| Employees | 45,344 (End H1 2010) | 40,074 (End H1 2009) | 13.2 | 45,344 (End Q2 2010) | 40,074 (End Q2 2009) | 40,131 (2009 average) |
New orders in the HOCHTIEF Asia Pacific division grew substantially in the first half of 2010 compared with the prioryear period. This mainly reflected new orders which as expected included several large-scale contracts in the second quarter. Adjusted for exchange rates, new orders came to EUR 6.27 billion, EUR 2.15 billion higher than the comparative prior-year figure. Tracking strong performance in infrastructure construction and contract mining, work done increased by 29.4 percent (2.3 percent on an exchange rate-adjusted basis). The very high order backlog compared with the prior-year period grew partly as a result of the strong level of new orders and partly due to the buoyant Australian dollar. On exchange rate-adjusted figures, the increase compared with June 30, 2009 came to EUR 4.38 billion. External sales grew in line with work done by 34.8 percent to EUR 5.06 billion (exchange rate-adjusted: up 6.6 percent to EUR 4 billion).
Earnings performance remained solid with increases in both operating earnings (by 22.6 percent) and profit before taxes (by 16.1 percent). This includes over EUR 60 million in positive exchange rate effects. A significant portion was used for cautious valuation purposes in the infrastructure and building construction business with regard to activities of associated companies. The sustainability of earnings reflects the advantages resulting from the diversity of markets and geographies in the division, which consequently more than made up for a slowdown in the Australian property market.
The EUR 522.2 million in capital expenditure notably reflects an increased need for mining equipment, participation by Leighton Holdings in a rights issue by Devine Ltd., a listed associate company, and an increase in Leighton’s stake in Devine to 49.7 percent.
During the second quarter of 2010, Leighton companies were awarded a number of major new contracts for infrastructure projects. The Tulla Sydney Alliance, which includes Thiess, is upgrading a 9.7-kilometer section of the M80 Ring Road in Melbourne, Australia. The alliance will receive some EUR 437.3 million for its services, the majority of which will go to Thiess.
Also in Melbourne, a John Holland alliance is upgrading a section of railway line. The project, which will include the construction of 12 kilometers of new track and the laying of around 18,000 concrete sleepers, is worth EUR 451 million overall. The company’s share is expected to be more than EUR 208 million. Together with partners, Leighton Contractors
was awarded a construction contract by rail operator Queensland Rail. The contract for the line is worth EUR 254 million. Leighton’s share is about EUR 229 million.
Thiess Services signed a contract to upgrade and maintain the electrical distribution network in Perth and southwest regional Western Australia. The contract, which is to run over a maximum period of five years, will be worth up to EUR 221 million. The company was also awarded a contract to remediate a stretch of river bed in the south arm of the Hunter River in New South Wales. The project is worth almost EUR 283 million. Thiess also entered into a consortium with the solar technology company Silex Systems to develop one of Australia’s first solar photovoltaic power stations.
In the resources sector, Leighton companies recorded further successes with mining contracts: Thiess will continue coal mining operations at the South Walker Creek Mine in Queensland for another three years, for which it will receive EUR 154 million. Leighton Contractors was awarded a threeyear, EUR 119 million contract extension at the Woodie Woodie manganese mine. Leighton Asia’s contract to provide coal mining services at the MSJ mine in Indonesia has been extended for another six years. The contract is worth some EUR 772 million. In Mongolia, Leighton Asia secured an additional volume of EUR 642 million with a second follow-on contract at the Ukhaa-Khudag mine, which will produce up to ten million metric tons of coal per year by 2011. We also secured the contract to develop and operate the Khushuut coal mine in western Mongolia.
HOCHTIEF Asia Pacific outlook
Based on the high order backlog, excellent market position and good prospects for the business segments, the HOCHTIEF Asia Pacific division continues to expect profit before taxes to increase on the prior-year level in fiscal 2010.