HOCHTIEF Asia Pacific division
| (EUR million) | Q1-Q3 2009 | Q1-Q3 2008 | Percentage change | Q3 2009 | Q3 2008 | Full Year 2008 |
|---|---|---|---|---|---|---|
| New orders | 9,386.4 | 9,622.7 | -2.5 | 5,270.4 | 3,830.3 | 12,651.0 |
| Work done | 6,979.5 | 6,517.5 | 7.1 | 2,412.5 | 2,171.7 | 8,638.9 |
| Order backlog | 21,144.5 | 17,035.2 | 24.1 | 21,144.5 | 17,035.2 | 16,194.2 |
| Divisional sales | 5,763.6 | 5,355.4 | 7.6 | 2,006.9 | 1,780.8 | 6,884.8 |
| External sales | 5,763.4 | 5,355.2 | 7.6 | 2,006.9 | 1,780.7 | 6,884.5 |
| Operating earnings (EBITA) | 389.1 | 443.5 | -12.3 | 127.7 | 127.2 | 427.5 |
| Profit before taxes | 310.5 | 346.1 | -10.3 | 97.4 | 83.3 | 327.2 |
| Capital expenditure | 461.0 | 953.5 | -51.7 | 119.0 | 340.8 | 1,005.2 |
| Net assets | 2,390.0 | 1,993.4 | 19.9 | 2,390.0 | 1,993.4 | 2,081.5 |
| Employees | 39.254 (End Q1-Q3 2009) |
40,763 (End Q1-Q3 2008) |
-3,7 | 39,254 (End Q3 2009) |
40,763 (End Q3 2008) |
37,076 (2008 average) |
The HOCHTIEF Asia Pacific division performed well in the first nine months of 2009. During this period, new orders fell by 2.5 percent year on year due to a EUR 769 million adverse exchange rate effect resulting from the weaker Australian dollar compared with the prior-year period. On an exchange rate adjusted basis, new orders were 5.5 percent up on the previous year. Work done and external sales increased (by 7.1 percent and 7.6 percent respectively) in the reporting period due to strong order intake in the infrastructure and contract mining segments in 2008 and the first half of 2009. The very high order backlog compared with the prior-year period is attributable primarily to the large volume of new projects in the third quarter of 2009. The substantial year-on-year increase was also underpinned by a favorable exchange rate effect in the amount of approximately EUR 1.4 billion at the balance sheet date.
Both operating earnings and profit before taxes reflected the repercussions of the financial crisis, which has affected commercial real estate development in Australia and the building construction sector in Dubai in particular. The markets in Abu Dhabi and Qatar showed an encouraging trend, while the contract mining business remained largely stable. Adjusted for exchange rate effects, operating earnings declined by 4.9 percent and profit before taxes by 2.5 percent year on year.
Capital expenditure was significantly down on the prioryear figure following last year’s heavy investment in financial assets.
Net assets rose sharply year on year due to the increased volume of business.
The Leighton subsidiaries were awarded numerous projects in the reporting period, including a major contract in Australia: As part of a consortium, Thiess is to finance, design and build one of the world’s largest seawater desalination plants, including an 86-kilometer pipeline, and subsequently operate it for a period of 30 years. This plant project is worth EUR 2.1 billion.
John Holland consolidated its position in the healthcare properties segment: In Perth, the company is to redevelop and modernize the Joondalup Health Campus under a contract worth a total of EUR 158 million.
The division also performed well in the transportation infrastructure segment. A consortium including John Holland, for example, is to operate Melbourne’s passenger train
franchise for an initial period of eight years. John Holland expects its share of the contract to be worth around EUR 95 million a year. In addition, the company was awarded the contract to construct a EUR 119 million stretch of freeway. Also in Melbourne, Thiess is part of a joint venture contracted to upgrade a section of the M80 Ring Road. In Brisbane, Leighton Contractors is part of a consortium expanding a busway network for a total of EUR 167 million.
The resources market is gaining momentum. Thiess received a EUR 282 million follow-on contract for Barrow Island, where the company is carrying out preparatory work ahead of the development of gas fields. At the Peak Downs coal mine in Queensland, Leighton was awarded a three-year contract extension worth EUR 172 million.
Business performance was strong at an international level, too. In India, Leighton International is working together with partners on a new IT park near the city of Chennai. The project is worth EUR 165 million. In Hong Kong, Leighton Asia received a EUR 233 million contract for the construction of a sewage conveyance system: Leighton Asia holds an 80 percent stake in a joint venture that is to design and build this sewage tunneling system. The project is part of the government’s economic stimulus program. Al Habtoor Leighton has been pursuing new projects in the Gulf states. It has a 50 percent stake in a joint venture that is to build the St. Regis Hotel and Residences for just under EUR 345 million. In Qatar, Al Habtoor Leighton is to construct two water supply networks in a project worth a total of EUR 144 million.
HOCHTIEF Asia Pacific outlook
The outlook for the division remains positive based on its high order backlog and the prospect of further contracts from the economic stimulus programs in Australia and Asia. At the same time, the Chinese economy is picking up again, once more boosting demand for raw materials. We now expect profit before taxes to rise above the prior-year figure.