HOCHTIEF Construction Services Asia Pacific Division
|(EUR million)||Q1-Q3 2007||Q1-Q3 2006||Percentage change||Q3 2007||Q3 2006||Full Year 2006|
|Operating earnings (EBITA)||305.2||191.9||59.0||87.2||55.1||277.4|
|Profit before taxes||283.3||170.9||65.8||75.2||48.9||262.2|
(End Q3 2007)
| 26006 |
(End Q3 2006)
|7.0|| 27839 |
(End Q3 2007)
| 26006 |
(End Q3 2006)
| 25499 |
The HOCHTIEF Construction Services Asia Pacific division reported another very solid performance in the third quarter of 2007.
New orders rose by 32.4 percent over the prior-year period to EUR 6.54 billion. Work done was 18.5 percent higher at EUR 5.44 billion, and the order backlog was up 35 percent over the previous year's level, for further significant growth. With an increase of 3.6 percent to EUR 4.6 billion, external sales reached an impressive level. The reason for the strong increase in work done compared with sales growth is that more and more work is being done in joint ventures which are not fully consolidated. This is not shown in the sales figures.
Operating earnings (plus 59 percent) and profit before taxes (plus 65.8 percent) both increased substantially over the corresponding prior period. The strong level of earnings growth reflects the increase in work done and margin expansion, both of which are outcomes of our strong positioning coupled with highly favorable market conditions at present.
Capital expenditure was substantially increased during the period due to Leighton taking a 45 percent stake in Al Habtoor-Leighton.
Dubai-based Al Habtoor Engineering is a highly regarded builder, responsible for constructing many of the region's iconic projects including the seven-star Burj Al Arab hotel in Dubai. Leighton is merging its operations in the Gulf region with Al Habtoor Engineering which will make Al Habtoor- Leighton one of the region's leading contractors.
In the United Arab Emirates, Leighton International was awarded a contract worth over EUR 400 million to construct a link road on Saadiyat Island in Abu Dhabi.
Contract mining continued to provide a significant number of new work opportunities. Leighton Contractors won a five-year mining contract worth around EUR 320 million at the Sonoma coal mine in Queensland. Thiess was awarded an extension to its existing contract to provide mining services at the South Walker Creek mine, also in Queensland. The contract is worth approximately EUR 215 million. Leighton International secured a three-year extension to its surfacemining contract at the MSJ coal mine in Indonesia worth around EUR 91 million.
The division's infrastructure activities also continued to reap success. John Holland was awarded two major sewerage construction projects in Melbourne worth around EUR 290 million in total. The job includes installing eight kilometers of tunnel in the city's suburbs. Leighton Contractors won an approximately EUR 120 million contract to construct a new access road to Brisbane Airport. At Townsville in North Queensland, Thiess received the construction contract for Stage 4 of the Lavarack Barracks Redevelopment, having successfully delivered Stages 2 and 3. This follow-up contract to the redevelopment project is worth roughly EUR 130 million. Work on two other major projects North-South Bypass Tunnel and Gateway Bridge is on schedule.
Leighton Contractors' specialist telecommunications subsidiary Visionstream secured a new two-year contract so far worth around EUR 140 million to deliver technical network access and associated services to Telstra.