HOCHTIEF is still staying very true to course in fiscal 2008. In the second quarter, the figures again clearly demonstrate that the Group is forging ahead at a dynamic pace. For example, in the first half of this year, we have increased consolidated profit before taxes to EUR 292.2 million – equivalent to almost 61 percent up on the prior-year figure. As a result of this trend, we are raising our forecast for the year.
All corporate divisions are riding the crest of success. Our strategy of covering the entire life cycle of infrastructure projects, real estate and facilities and shaping our activities by way of selective portfolio management is paying dividends. With our four modules of development, construction, services, and concessions and operation, we have positioned ourselves perfectly to meet the growing demand for services from a single source. At the same time, sustained, integrated solutions and long-term success continue to gain significantly in importance – also evidenced by the introduction of the German sustainable building certificate to which we are firmly committed.*
In our development module, we have again made good headway. The second quarter saw the start of several projects, including an office building in Düsseldorf. With the Lipowy Office Park in Warsaw, we have once again succeeded in fully letting a project before its completion. Here, Poland's biggest single lease agreement was signed – proof positive not only of the office complex's appeal but also our skill in devising sought-after projects.
Our construction module is also on a positive track. We won a number of new orders internationally. For instance, Turner is building new, large-scale healthcare and educational facilities in the USA, while Flatiron was awarded new transportation infrastructure contracts, including the construction of a steel girder bridge in Canada.
Our two high-performance US companies work closely together wherever building construction and civil engineering
In the Asia-Pacific region, Leighton's compelling performance continues with a number of major projects. The high-volume contracts won in the second quarter include an expressway in New South Wales, Australia. A consortium including Leighton subsidiaries Thiess and John Holland has become the preferred bidder for Australia's largest road infrastructure project in Brisbane worth over EUR 2.9 billion, comprising Airport Link, the Northern Busway as well as an airport fly-over. Financial close was reached in July.
Leighton's activities in the Arabian Gulf are also enjoying major success. In Abu Dhabi, our subsidiary is building six tourism projects as part of a joint venture. The Al Habtoor Leighton Group was awarded the contract to build the Trump Tower complex in Dubai for almost EUR 510 million, similarly as part of a joint venture. These and other largescale projects reflect the huge potential this market has a market in which we established a vantage position for ourselves early on.
In Europe, we are pursuing the path we have embarked on: Following the organizational restructuring and sharper focusing of our German building construction business, we have made great strides in our operational performance. Having significantly reduced general contractor business, we are now focusing on business where we can stand out in ways other than just the price. We have also introduced new criteria for a fair distribution of risks. In this context, we are once again adjusting resources as part of a final restructuring step in our German building construction business. Overall, however, HOCHTIEF will continue to grow this year, too. We are countering the worldwide shortage of skilled personnel with selective human resources management measures and are offering our staff a diverse range of in-house further development options. The aim is to deploy people in areas where we are able to generate profitable business – such as in project development, services and concessions, or in non-German construction business that allows higher margins to be achieved.
In the services module, we are operating in a growth market. By supporting clients with our expertise and allowing them to focus on their core business, we are making a valuable economic contribution. Take, for instance, the Mercedes-Benz plant in Bremen where HOCHTIEF Facility Management won the contract to take charge of technical facility management.
