HOCHTIEF Development Division
| (EUR million) | Q1-Q3 2007 | Q1-Q3 2006 | Percentage change | Q3 2007 | Q3 2006 | Full Year 2006 |
|---|---|---|---|---|---|---|
| New orders | 1,286.6 | 837.8 | 53.6 | 541.7 | 314.5 | 1,265.8 |
| Work done | 892.2 | 703.0 | 26.9 | 359.5 | 271.4 | 1,076.2 |
| Order backlog | 2,368.1 | 2,061.0 | 14.9 | 2,368.1 | 2,061.0 | 2,017.0 |
| External sales | 875.6 | 693.1 | 26.3 | 348.9 | 271.2 | 1.016.7 |
| Operating earnings (EBITA) | 10.7 | 6.5 | 64.6 | 3.7 | -0.4 | 38.8 |
| Profit before taxes | 18.0 | 13.1 | 37.4 | 6.4 | 3.0 | 45.4 |
| Capital expenditure | 13.1 | 12.3 | 6.5 | 5.1 | 1.9 | 19.4 |
| Net assets | 698.8 | 798.1 | -12.4 | 698.8 | 798.1 | 653.8 |
| Employees | 5430
(End Q3 2007) | 5014 (End Q3 2006) | 8.3 | 5430 (End Q3 2007) | 5014 (End Q3 2006) | 4887 (2006 average) |
The HOCHTIEF Development division sustained its favorable development in the third quarter of 2007 and surpassed its prior-year figures for new orders, work done and earnings.
Compared with the previous year, new orders grew substantially, by 53.6 percent. This positive trend was fueled by several new projects at home and abroad for HOCHTIEF Projektentwicklung as well as by the start-up company HOCHTIEF Property Management. In the third quarter, HOCHTIEF PPP Solutions added the Frankfurt schools project to the order intake. Measured against the previous year, work done and external sales increased in every operational unit, most markedly in the case of HOCHTIEF Projektentwicklung and HOCHTIEF PPP Solutions.
Operating earnings and profit before taxes are higher than the prior-year figures overall. This outcome is notably attributable to the improved returns posted by HOCHTIEF Facility Management and the sustained upward earnings trend at HOCHTIEF Projektentwicklung. High initial costs for acquisitions in infrastructure projects in Germany and abroad continue to exert pressure on the earnings of HOCHTIEF PPP Solutions
HOCHTIEF PPP Solutions
| (EUR million) | Q1-3 2007 | Q1-3 2006 |
Per- centage change |
Q3 2007 | Q3 2006 |
Full Year 2006 |
|---|---|---|---|---|---|---|
| External sales | 135.2 | 130.8 | 30.3 | 50.1 | 54.4 | 138.5 |
| Profit before taxes | -14.8 | -11.2 | -32.1 | -7.5 | -3.7 | -6.2 |
In September, HOCHTIEF PPP Solutions, together with a partner, secured the contract to design, finance, build and operate a 45-kilometer section of the A4 federal highway between Gotha and Eisenach. HOCHTIEF is to play the lead role. This public-private partnership (PPP) project is worth about EUR 300 million. It is one of the road widening projects put out to tender by the Federal Ministry of Transport, Building and Urban Affairs under its "A model" program. The concession is to run for a period of 30 years. The financial close was in October.
In the public buildings segment, HOCHTIEF PPP Solutions added two new orders to its schools portfolio in the reporting period. In Frankfurt am Main, the company is to build or refurbish four schools and then operate them for 20 years on the basis of a PPP contract. The contract is worth some EUR 248 million, of which around EUR 106 million is earmarked for the building work. We are joining forces with partners to finance, build and operate two schools in West Lothian, Scotland'a project worth in the region of EUR 90 million. The contract volume over the entire period of 30 years is more than EUR 400 million. HOCHTIEF PPP Solutions' most recent project success is the order placed by the City of Cologne to build and operate a non-selective secondary school in the city's Rodenkirchen district. The budget for the new building, which HOCHTIEF Facility Management will operate for 25 years, is EUR 50 million. The contract volume is about EUR 125 million.
In the UK, building work has been completed on the Wright Robinson Sports College in Manchester. The new building was handed over to the school community at the beginning of September. Teaching also got under way in September in the Cork School of Music after HOCHTIEF PPP Solutions finished the complex eight weeks ahead of schedule. HOCHTIEF Facility Management has been commissioned to operate both of these educational establishments.
The company is now responsible for a total of 89 schools in Germany, the UK and Ireland, where more than 60,000 students and their teachers are benefiting from our services.
