Marcelino Fernández Verdes

Marcelino Fernández Verdes

German contractor Hochtief reversed last year’s first half net loss of €50.6 million and returned to net profit of €126.2 million for the first six months of 2013.

The result was boosted by asset sales as it seeks to streamline its business.

Revenues stood at €12.6 billion at the end of the first half, up 5% year-on-year, fuelled by gains in the company’s Americas and Europe divisions.

However, the order backlog at 30 June, 2013, amounted to €45.3 billion, down 14.4% year-on-year. Hochtief said this was due to negative exchange rates effects, mainly relating to the Australian and US dollar.

Hochtief – which itself is owned by Spanish contractor ACS – said its strategy of disposing non-core assets was going according to plan.

This year it has sold its airports business for €1.1 billion and its Service Solutions business for €250 million, while its Australian subsidiary Leighton sold its telecommunications business for €475 million in the second quarter.

Leighton – in which Hochtief owns a 56.4% stake – also reported improved results for the first half. Revenues were up 4% year-on-year to AU$11.5 billion (€7.89 billion), while net profit soared 218% to AU$366 million (€251 million). This jump was fuelled by the telecommunications sale.

Hochtief CEO Marcelino Fernández Verdes said, “We are well on course to implement our strategy and position Hochtief as a global infrastructure group.”

Looking ahead, Hocthief forecast net profit of between €160 million and €200 million for the full-year. It said this guidance did not include any earnings from the assets it has sold this year.

Newsletter

Delivered directly to your inbox World Construction Week features the pick of the breaking news stories, product launches, show reports and more!

Sign up for free

Newsletter

Delivered directly to your inbox World Construction Week features the pick of the breaking news stories, product launches, show reports and more!

Go to newsletters