HOCHTIEF Services Division
| (EUR million) | Q1-Q3 2009 | Q1-Q3 2008 | Percentage change | Q3 2009 | Q3 2008 | Full Year 2008 |
|---|---|---|---|---|---|---|
| New orders | 410.0 | 538.9 | -23.9 | 106.9 | 126.8 | 753.5 |
| Work done | 483.6 | 509.5 | -5.1 | 163.6 | 180.1 | 709.4 |
| Order backlog | 1,418.9 | 1,622.7 | -12.6 | 1,418.9 | 1,622.7 | 1,560.0 |
| Divisional sales | 483.6 | 509.4 | -5.1 | 163.6 | 179.6 | 709.5 |
| External sales | 470.4 | 504.6 | -6.8 | 158.5 | 178.5 | 683.1 |
| Operating earnings (EBITA) | 14.5 | 16.3 | -11.0 | 5.3 | 6.1 | 26.8 |
| Profit before taxes | 13.1 | 13.1 | - | 4.9 | 5.0 | 22.9 |
| Capital expenditure | 3.2 | 5.3 | -39.6 | 0.8 | 2.2 | 11.1 |
| Net assets | 132.5 | 207.6 | -36.2 | 132.5 | 207.6 | 176.7 |
| Employees | 5,614 (End Q3 2009) |
5,711 (End Q3 2008) |
-1.7 | 5,614 (End Q3 2009) |
5,711 (End Q3 2008) |
5,651 (2008 average) |
Despite the effects of the financial crisis, the HOCHTIEF Services division held third-quarter earnings in 2009 on a par with the comparative prior-year period.
New orders were a marked 23.9 percent down on the prior-year figure, which was bolstered by large contract awards. Looking after margin quality remains a priority at HOCHTIEF Services in the current difficult financial climate. Both work done and external sales were slightly down in the period under review compared with the same period of 2008. The order backlog dropped by 12.6 percent year on year. This partly reflected negative exchange rate effects at international subsidiaries, most of all with regard to major projects in the UK.
It was not possible to match the prior-year level on operating earnings, primarily due to the drop in new business. Profit before taxes was held constant from the prioryear period. This reflected better net interest income and improved receivables management.
As a result of a systematic reduction in receivables, net assets decreased by 36.2 percent on the end of the prior- year period.
The public infrastructure segment featured strongly in new contracts secured by HOCHTIEF Facility Management during the third quarter. These included a contract to supply the entire electrotechnical equipment for Duisburg’s Mercator Tunnel and then maintain the technical installations for five years.
In Munich, the company received a contract from HOCHTIEF Projektentwicklung to operate the city’s central bus station (ZOB) for the coming two years. Starting right away, HOCHTIEF’s facility managers see to it that systems stay fault-free, look after security in the building and tend the infrastructure. HOCHTIEF Facility Management had already advised the project’s developers at its sister company during the design phase. This included analyzing and optimizing incidental costs in advance of operation—a key factor enabling timely negotiation of rental agreements.
The service provider additionally remains in charge of Hamburg’s Color Line Arena. Our portfolio of sports facilities has now been supplemented with a further Hamburg venue, the Volksbank Arena. HOCHTIEF Facility Management ensures optimum operation of all building systems and amenities, guaranteeing an outstanding visitor experience
at both stadiums. Our experts are responsible for all systems, providing electricity, running the air conditioning and taking care of the arena lighting.
HOCHTIEF Energy Management likewise sustained its successful trend. Under an energy performance contracting arrangement, the company is to cut annual energy costs at Staatstheater Hannover by 26 percent. The two parties signed a contract to this effect for the next ten years. HOCHTIEF Energy Management will also ensure carbon emissions are reduced by over 1,000 metric tons a year.
HOCHTIEF Services outlook
The market for facility and energy management services still holds potential, especially in outsourcing. However, several of our industrial clients have been forced to introduce short-time working. The HOCHTIEF Services division therefore continues to forecast healthy pretax profit for fiscal 2009, but this is likely to fall short of the prior-year figure.