HOCHTIEF Asia Pacific Division
| (EUR million) | Q1 2010 |
Q1 2009 |
Percentage change |
Full year 2009 |
|---|---|---|---|---|
| New orders | 1,031.2 | 1,786.7 | –42.3 | 12,418.5 |
| Work done | 2,672.8 | 1,991.8 | 34.2 | 9,645.2 |
| Order backlog | 22,341.4 | 16,445.7 | 35.8 | 22,132.7 |
| Divisional sales | 2,472.8 | 1,759.7 | 40.5 | 7,771.3 |
| External sales | 2,472.7 | 1,759.6 | 40.5 | 7,771.1 |
| Operating earnings (EBITA) | 122.7 | 95.4 | 28.6 | 535.6 |
| Profit before taxes | 95.8 | 71.2 | 34.6 | 432.9 |
| Capital expenditure | 142.7 | 127.2 | 12.2 | 782.2 |
| Net assets | 2,992.3 | 2,313.5 | 29.3 | 2,592.7 |
| Employees | 44,203 (End Q1 2010) | 38,303 (End Q1 2009) | 15.4 | 40,131 (2009 average) |
The HOCHTIEF Asia Pacific division reported another strong result for the first quarter. New orders were down on the very high figure for the prior-year period, which had included an unusually large single project worth approximately EUR 1.2 billion in the Indonesian contract mining business. Work done was up by 34.2 percent on the prior year due to strong performance in infrastructure construction and contract mining. On an exchange rate adjusted basis, the increase was 3.4 percent. The order backlog rose to EUR 22.34 billion, an increase of 35.8 percent over the prioryear quarter (adjusted for exchange rate effects: 4.2 percent). Divisional sales grew in line with work done by 40.5 percent to EUR 2.47 billion.
Accordingly, operating earnings and profit before taxes increased significantly by 28.6 percent (adjusted for exchange rate effects: 0.5 percent) and 34.6 percent (adjusted for exchange rate effects: 3.7 percent), respectively.
Capital expenditure of EUR 142.7 million included Leighton Holdings’ participation in the capital increase of the listed associate Devine Ltd. In addition, its stake in this company was increased to 49.7 percent.
Leighton’s subsidiaries won numerous new projects in the reporting period. In contract mining, order books are strong thanks to sustained demand for resources, particularly from Asia. Thiess secured a EUR 521 million, 10-year followon contract at the Curragh North mine in Queensland. In addition, the company was awarded a twelve-month contract extension worth EUR 90 million for the Meandu coal mine, also in Queensland. Leighton Asia signed a six-year contract for mining of ore at the Toka Tindung gold mine in Indonesia, worth approximately EUR 83 million.
Leighton also notched up successes in the infrastructure segment. The Hong Kong government continued its major expansion program and awarded Leighton Asia a contract to construct a 7.6-kilometer section of the rail link from Guangzhou to Hong Kong. The contract for the Tse Uk Tsuen to Shek Yam section is worth more than EUR 311 million. The construction company Macmahon, in which the HOCHTIEF subsidiary Leighton has a stake, acts as subcontractor. Macmahon’s subcontract is worth EUR 77 million.
In a joint venture, Leighton Asia also secured a EUR 156 million contract to design and build a new hospital on Lantau Island in Hong Kong.
Leighton Properties and Leighton Contractors have signed a EUR 64 million contract to sell the South Tower of the HQ development in Brisbane, Queensland, to an investor from Switzerland.
HOCHTIEF Asia Pacific outlook
Prospects for new large-scale infrastructure projects in the Asia-Pacific region remain good, thanks in part to national infrastructure programs. Market opportunities are expected above all from hydro construction, transportation infrastructure and education projects, as well as the expansion of the broadband network in Australia. Moreover, there is still great potential in the resources sector, driven by strong demand in Asia.
Based on the high order backlog, strong market position, and good prospects for its business areas, the HOCHTIEF Asia Pacific division still expects profit before taxes to increase on the prior-year level in fiscal 2010.