The six airports in our concessions portfolio also show robust performance. All report impressive traffic growth and strong earnings. This is the result of both ongoing improvements in the range of flights on offer and the systematic expansion of non-aviation business.
In the Asia-Pacific region, we again acquired some valuable contract mining orders. March 2008 saw us enter the Indian mining market, where we were awarded a contract worth around EUR 580 million for the Chitarpur mine in north eastern India.
As you can see, we continue to evolve. The Group is alive and pulsating. We have also brought this to bear at an organizational level by adapting our corporate structure effective January 1, 2008. We report in line with this new structure for the first time in this quarterly report.*
At EUR 5.27 billion, new orders as of March 31, 2008 were 33.6 percent higher year on year. The increase was due primarily to large contracts in the Asia-Pacific region, where we were awarded new projects worth more than EUR 1.5 billion in March alone. At EUR 0.84 billion, new orders in Germany were on a par with the previous year.
Due to growth across all divisions, work done increased by 19.6 percent in the first quarter to EUR 4.93 billion. HOCHTIEF Asia Pacific accounted for more than 45 percent of this growth and HOCHTIEF Americas for 36 percent. The 22.9 percent increase in Germany was driven mainly by our HOCHTIEF Concessions, HOCHTIEF Real Estate and HOCHTIEF Services divisions.
The Group's order backlog increased by 17.4 percent to EUR 29.15 billion. Compared with the prior-year quarter, unfavorable exchange rate effects reduced order backlog as of March 31 by EUR 2.19 billion. Adjusted for these effects, order backlog increased by 26.2 percent over the first quarter of 2007 to EUR 31.34 billion. The Group has a forward order book of almost one and a half years.
Our key earnings data illustrate the good start to 2008. Operating earnings skyrocketed 83.4 percent from EUR 71.9 million to EUR 131.9 million, while profit before taxes rose by 56.8 percent from EUR 65.9 million to EUR 103.3 million. HOCHTIEF's consolidated net profit grew at an even faster pace, more than tripling year on year from EUR 9.6 million to EUR 32.1 million.
Measured against the previous year, capital expenditure increased by just over EUR 100 million in the period under review to reach EUR 332.5 million (previous year: EUR 231.8 million). Purchases of intangible assets and property, plant and equipment rose by EUR 62.1 million, from EUR 102.6 million to EUR 164.7 million, due primarily to investments in our HOCHTIEF Asia Pacific division's still rapidlyexpanding and capital-intensive mining business. Financial investments also continued to increase, rising from EUR 129.2 million to EUR 167.8 million, almost all of which was attributable to the expansion of Leighton's business portfolio.
Group forecast
Provided that 2008 does not bring a crisis-scale economic downturn, international financial and commodities markets are not affected long-term by turmoil such as that caused by the US subprime crisis and the situation in areas of political tension does not worsen, we expect:- new orders and the order backlog to remain at a high level but fall short of the prior-year figures;
- Group sales to top the record level achieved in 2007;
- pretax profit to reach the high level achieved in 2007, and
- consolidated net profit to be above the prior-year figure.
Dear shareholders, we are taking our Group forward in a responsible and purposeful manner. In fiscal 2008, HOCHTIEF is set to continue its track record of success. We are pleased to have your confidence and trust, and are committed to making daily improvements on your behalf.
Dr.-Ing. Herbert Lütkestratkötter
