HOCHTIEF Europe division
| (EUR million) | Q1-Q3 2009 | Q1-Q3 2008 (restated)* |
Percentage change | Q3 2009 | Q3 2008 (restated)* |
Full Year 2008 (restated)* |
|---|---|---|---|---|---|---|
| New orders | 2,440.7 | 2,482.2 | -1.7 | 388.0 | 663.1 | 3,283.3 |
| Work done | 2,048.1 | 2,249.2 | -8.9 | 667.5 | 830.9 | 3,238.5 |
| Order backlog | 3,933.4 | 3,824.8 | 2.8 | 3,933.4 | 3,824.8 | 3,559.6 |
| Divisional sales | 1,752.4 | 1,758.9 | -0.4 | 574.8 | 621.2 | 2,552.8 |
| External sales | 1,644.1 | 1,683.0 | -2.3 | 537.0 | 612.6 | 2,398.3 |
| Operating earnings (EBITA) | 16.6 | (47.4) | - | 3.9 | (13.0) | (30.3) |
| Profit before taxes | 15.1 | (50.2) | - | 5.2 | (24.1) | (34.9) |
| Capital expenditure | 69.4 | 35.2 | 97.2 | 16.2 | 18.6 | 53.5 |
| Net assets | 543.6 | 442.0 | 23.0 | 543.6 | 442.0 | 512.9 |
| Employees | 9,995 (End Q3 2009) |
9,318 (End Q3 2008) |
7,3 | 9,995 (End Q3 2009) |
9,318 (End Q3 2008) |
9,380 (2008 average) |
The HOCHTIEF Europe division is showing durability in times of general market restraint.
In the first nine months of 2009, new orders were down by EUR 41.5 million or a slight 1.7 percent compared with the figure for the prior-year period. In the third quarter, private-sector reluctance to place orders as a result of the financial crisis showed through. Work done as well as divisional and external sales remained below the prioryear levels in the first nine months and the third quarter. This decline is primarily the expected result of the restructuring of building construction operations in Germany. Even our increasing activities outside the country were not enough to offset this development. The order backlog grew by 2.8 percent year on year, with international projects accounting for more than half of the orders. Despite the decline in new orders deliberately allowed for, the division has a forward order book of 17 months overall.
HOCHTIEF Europe continued to focus on profitable segments and maintained its strict criteria for accepting new projects. Consequently, operating earnings and profit before taxes kept on rising steadily and sustainably.
The increase in capital expenditure was mainly due to additions of technical plant and equipment for our largescale project in Qatar.
The HOCHTIEF Europe division also continued its successful international operations in the third quarter. HOCHTIEF Polska, for example, is building a new terminal for Wrocław Airport including technical and auxiliary facilities in a contract worth approximately EUR 58 million. In addition, the company is extending the Silesian Stadium in Chorzów for EUR 35 million. The new stadium, which is to meet UEFA and FIFA standards, will be used as an official venue in the 2012 UEFA European Football Championship in Poland.
In the Czech Republic, HOCHTIEF CZ is upgrading the Benešov-Votice railway network near Prague by the start of 2012. The project, which is worth EUR 15.6 million, also includes the construction of an approximately 600-meterlong tunnel.
In Russia, HOCHTIEF is taking over approval planning for the airport operator Sheremetyevo International Airport, as well as the preparatory work for building Vladivostok Airport.
As before, we are supporting the client on the basis of the PreFair business model, whereby cooperation later feeds into the actual construction contract.
Together with partners, HOCHTIEF UK was awarded the contract for an ambitious infrastructure project in the County of Kent, which will include passing a motorway under the Ramsgate to Canterbury railway line. Our share of the project totals more than EUR 35 million.
In the last quarter, the focus in Germany was on the projects of our profitable FormArt property development business. In the inner city of Aschaffenburg, for instance, a park and office complex is being revitalized. The project is to be completed by fall 2010 and sold to a final investor.
HOCHTIEF Europe outlook
In light of the financial crisis, further possible capacity adjustments cannot be ruled out altogether. For the current fiscal year, the division expects to make a positive contribution to earnings. We continue to anticipate a one percent pretax return on sales.