Divisions
HOCHTIEF Americas Division
| (EUR million) | Q1-Q3 2009 | Q1-Q3 2008 | Percentage change | Q3 2009 | Q3 2008 | Full Year 2008 |
|---|---|---|---|---|---|---|
| New orders | 4,798.8 | 6,268.4 | -23.4 | 1,360.6 | 2,381.1 | 7,743.3 |
| Work done | 5,230.6 | 5,863.5 | -10.8 | 1,682.9 | 2,108.8 | 8,117.6 |
| Order backlog | 7,697.3 | 9,024.8 | -14.7 | 7,697.3 | 9,024.8 | 8,397.9 |
| Divisional sales | 5,137.4 | 5,800.9 | -11.4 | 1,640.2 | 2,112.8 | 8,045.1 |
| External sales | 5,137.4 | 5,800.9 | -11.4 | 1,640.2 | 2,112.8 | 8,045.1 |
| Operating earnings (EBITA) | 86.3 | 79.3 | 8.8 | 33.7 | 33.6 | 102.8 |
| Profit before taxes | 72.5 | 63.6 | 14.0 | 30.4 | 25.8 | 76.9 |
| Capital expenditure | 19.8 | 32.3 | -38.7 | 3.4 | 9.4 | 37.0 |
| Net assets | 499.1 | 485.7 | 2.8 | 499.1 | 485.7 | 465.3 |
| Employees | 9,045 (End Q3 2009) |
10,386 (End Q3 2008) |
-12,9 | 9,045 (End Q3 2009) |
10,386 (End Q3 2008) |
10,752 (2008 average) |
The HOCHTIEF Americas division has held its own despite a persistently difficult operating environment. New orders for the first nine months were EUR 1.47 billion (23.4 percent) down on the very high comparative figure for 2008. Thirdquarter new orders were markedly weaker than the strong comparative period as a result of securing fewer large-scale contracts. Work done, divisional sales and external sales also fell. As expected, the order backlog did not attain the record figure at the end of the prior-year period but still remained at a very high level.
Operating earnings improved by EUR 7 million in the first nine months compared with the prior-year period, while third-quarter operating earnings were on a par with 2008. Profit before taxes likewise increased (by EUR 8.9 million) in the first nine months and exceeded the prior-year figure by EUR 4.6 million in the third quarter alone. The gains in the earnings figures largely related to a rise in the average US dollar exchange rate over the first nine months.
The number of employees decreased, reflecting lower construction output due to the current market situation.
Our US subsidiary Turner secured a large number of attractive public building contracts in the third quarter of 2009. These include several contracts for justice facilities, among them a new EUR 41 million court building in Marietta, Georgia. Under a contract worth a total of EUR 77 million, the company is renovating a 1964 courthouse in Chicago designed by Bauhaus architect Mies van der Rohe.
Education buildings again featured prominently in Turner’s capability portfolio through the third quarter of 2009. Contracts awarded in this segment included two projects in Queens, New York. For a total of EUR 63 million, Turner is to manage the renovation and addition to one school and the construction of a second. Both projects emphasize sustainability and are designed to green building standards.
Turner also signed the contracts to build two sets of military housing quarters: The US Marine Corps awarded our subsidiary a design-build contract for two groups of residences in Camp Pendleton, California. Quarters for 2,800 marines are scheduled for completion by 2011. The contracts are for a combined total of EUR 147 million, EUR 88 million of which is accounted for by Turner.
Turner has underscored its leadership in the healthcare buildings segment with two new projects. In Atlanta, Georgia, Turner secured the contract for a new office building on the campus of the Center for Disease Control and Prevention. The EUR 66 million-plus complex is targeted to achieve LEED Gold certification. Turner has the same goal in managing construction of a medical office building for the University of Kansas Hospital, Kansas City. Slated for completion in 2011, the building will house treatment and exam areas for 18 clinical departments. The contract is worth EUR 39 million.
Our American civil engineering subsidiary Flatiron also sustained a healthy business trend, securing a series of new highway projects. In California, the HOCHTIEF subsidiary is reconstructing and widening a bridge on Interstate 880 for EUR 41 million. Flatiron is also constructing new lanes along Interstate 80 under a EUR 15 million contract.
HOCHTIEF Americas outlook
In light of the strong trend of recent months, we now expect HOCHTIEF Americas division profit before taxes to exceed the prior-year figure.