Interim Management Report
Orders and work done
Group order books remained strong through the first quarter. This provides a sound basis ensuring the Group's stability, also in the financial crisis.New orders
At EUR 4.38 billion, first-quarter new orders were 16.9 percent down on the comparative prior-year figure. Much of the difference related to the HOCHTIEF Europe division, which – including a number of change orders placed at the beginning of the year – secured new contracts worth EUR 1.21 billion in the first quarter of 2008 alone. This accounted for most of the decrease in Germany (31.6 percent). The lower figure on the international side was mainly attributable – aside from a drop in international new orders at HOCHTIEF Europe – to an exchange rate-induced reduction at HOCHTIEF Asia Pacific.Group work done
Work done was 3.4 percent down on the comparative prioryear figure, at EUR 4.76 billion for the quarter ending March 31, 2009. Adjusted for exchange rate changes, the total was EUR 4.87 billion, close to the figure for the first quarter of 2008 when the financial crisis had not yet taken effect.Order backlog
The order backlog grew by EUR 2.2 billion from the prioryear quarter to reach an absolute total of EUR 31.35 billion. The increase reflects substantially higher new orders (up EUR 2.92 billion) relative to work done in the last twelve months. The order backlog corresponds to a forward order book of more than 19 months.Financial review
Earnings
The HOCHTIEF Group generated sales of EUR 4.4 billion in the first quarter of 2009, an increase of 15.8 percent on the comparative prior-year figure (EUR 3.8 billion).This outcome was largely driven by above-average growth in the HOCHTIEF Asia Pacific division, where sales rose by 41.7 percent to EUR 1.76 billion (Q1 2008: EUR 1.24 billion). This was even after a EUR 314.5 million adverse exchange rate effect due to weakness of the Australian dollar against the euro. The beginning of 2009 thus saw Leighton keep up its exceptionally strong sales trend from previous periods. The HOCHTIEF Americas division sales marginally increased from their already high prior-year level to EUR 1.74 billion (Q1 2008: EUR 1.73 billion). This included a positive impact from changes in the US dollar/euro exchange rate. Despite the difficult economic environment, the HOCHTIEF Europe division achieved sales growth of 8.4 percent. First-quarter sales at HOCHTIEF Europe went up from EUR 494.1 million in the prior year to EUR 535.6 million in the current year. The division mainly profited here from the strength of the international business. HOCHTIEF Real Estate division sales climbed sharply to EUR 151.5 million (Q1 2008: EUR 108.8 million). The main factor here consisted in revenues from a number of real estate development projects. Sales in the HOCHTIEF Services division came to EUR 154.4 million, only slightly down on the prior-year quarter (Q1 2008: EUR 160.6 million).
HOCHTIEF maintained strong earnings growth at the start of 2009 despite the persistently harsh economic environment. Operating earnings (EBITA) improved by 7.7 percent relative to the prior year, to EUR 142.1 million (Q1 2008: EUR 131.9 million). Our operating divisions contributed to this compelling overall earnings performance to varying degrees. Pride of place goes to the healthy development of HOCHTIEF Europe. Through successful restructuring and adjustments, the division has achieved turnaround and confirmed the trend that began to emerge in the fourth quarter of 2008. With operating earnings of EUR 5 million— after a EUR 13.5 million operating loss in the prior-year quarter—HOCHTIEF Europe is back in the black.
