|
contents | business | |||||||||
| Hochtief publishes its 2013 nine-month report  German builder Hochtief said that it is in a strong position at the end of the first nine months of 2013: The Group generated profit before taxes of EUR 705.8 million (double the level for the comparable period in 2012) and a net profit of EUR 150.4 million (versus EUR 89.8 million). Adjusted for the impact from the disposals of the airports and services businesses (completed in the third quarter and now deconsolidated from January 1, 2013), as well as restructuring and other one-off items the Group produced an operating profit before taxes of EUR 415.2 million and a net profit of EUR 142.4 million, consistent with our full-year guidance. All areas contributed to this success with each operational division substantially improving performance.The Group's order backlog stood at EUR 43.5 billion at the end of the first nine months, representing a solid forward order book of 18 months. Hochtief thus looks ahead with confidence to the remainder of the year and consequently reaffirms its guidance for 2013. Key figures: January to September 2013 Hochtief sustained strong earnings performance through the year to date and made profit before taxes of EUR 705.8 million in the first three quarters (Q1-3/2012: EUR 350.9 million). This is after the deduction of provisions to cover planned restructuring expenses for the reorganization of the Europe business. Excluding one-off items, profit before taxes was EUR 415.2 million. Consolidated net profit came to EUR 150.4 million, representing an increase of 67.4% (Q1-3/2012: EUR 89.8 million*) or EUR 142.4 million on an operational basis, excluding one-off effects. Operational earnings (EBITA) came to EUR 1.01 billion in the first nine months of 2013, almost doubling the figure for the prior-year period (Q1-3/2012: EUR 521.5 million). Alongside progress in the operating business, the significant increase also reflected one-time items relating to the sale of non-core activities. Hochtief secured new orders of EUR 20.19 billion in the first nine months of 2013. Adjusted for exchange rate effects and the disposal of the services business, new orders were only approximately 3% lower than the comparative prior-year figure. Looked at in isolation, the third quarter of 2013 shows a marked increase: The Group recorded new orders of EUR 8.59 billion between July and September 2013, up 45.4% on the prior-year quarter. On an exchange rate adjusted basis, work done was up 5.1% at EUR 21.38 billion as of the September 30 reporting date. The order backlog stood at EUR 43.5 billion as of September 30, 2013. Adjusting for exchange rate effects (around EUR 5.1 billion) and divestments (approximately EUR 2.9 billion, primarily relating to the services business) this represents a like-for-like increase of 2.2% year-on-year. At EUR 18.4 billion, sales in the reporting period almost matched the record figure attained in the previous year (Q1-3/2012: EUR 18.51 billion). Operating sales growth was partly offset by exchange rate effects, which had an impact of EUR 1.16 billion. Hochtief currently generates 92.5% of sales (Q1-3/2012: 93.2%) on international markets. New European structure Substantial progress was made during the reporting period with the restructuring of Hochtief Solutions, the subsidiary that represents the European division. This division will comprise four operational companies: Infrastructure, Building, PPP, and Engineering. Combining lean structures and well-defined responsibilities with efficient processes and entrepreneurial thinking, Hochtief aims to significantly improve competitiveness and profitability in Europe. The Group has signed a collective agreement for the restructuring measures with the Hochtief works council and the trade union IG BAU. All parties concerned are working toward the goal of eliminating the need for redundancies by seeking mutual agreements with the employees affected. The reorganization of Hochtief Solutions is expected to deliver annual cost savings of at least EUR 40 to 60 million. The Group estimates close to EUR 100 million restructuring costs for the Hochtief Europe division. Group outlook For 2013, Hochtief confirms that new orders, work done, and the order backlog will normalize, in line with the Group's expectations. The increased profit guidance for 2013 announced in the report for the first quarter of the year is again confirmed. The Group expects operational earnings of between EUR 580 million and EUR 660 million and consolidated net profit of between EUR 160 million and EUR 200 million. This guidance does not include the respective earnings contributions from Hochtief AirPort and the Service Solutions business of Hochtief Solutions. Financial close was reached for both transactions during the third quarter. The non-operational one-off effects (including from divestments and restructuring charges) are excluded from the operational profit guidance. write your comments about the article :: © 2013 Construction News :: home page |