Hochtief third quarter profits slow
By Steve Skinner17 November 2008
Hochtief recorded third quarter pre-tax profits of € 123 million, down -24% on the € 161 million reported for the same period last year. Overall sales in the third quarter were up +14% from € 4,3 billion in 2007 to € 4,9 billion this year.
The Hochtief Americas division recorded third quarter sales of € 2,1 billion, up +12% on the € 1,8 billion reported last year, while pre-tax profits for the division rose by +81% to € 25,8 million from € 14,2 million last year.
The Asia Pacific division also increased sales in the quarter by +23% to € 1,7 billion from € 1,4 billion in 2007. Pre-tax profits for the division also rose from € 75 million in 2007 to € 83 million this year, a +10% increase.
Hochtief Europe saw a -6% decline in sales from € 659 million in the third quarter of 2007 to € 619 million in the corresponding period this year. Further to a decline in sales, pre-tax profits for the quarter fell from € 2 million in 2007 to a loss of (€ 23,9 million) this year, a -91% fall.
“We maintained our track record of superb performance and quality throughout the quarter,” said Dr Herbert Lütkestratkötter, Hochtief chairman. “The loss in our European division was the result of the overheads incurred in completing loss-making projects already underway and of restructuring expenses.
“We are in the process of shoring-up our German construction business as much as possible and that will cost money this year,” continued Dr Lütkestratkötter. “In 2009 we expect the division to be back in the black and by 2010 we are aiming for a +3% return for the division.
“Overall, the financial crisis has not had any sustained effects on our operational business. We believe in our strategy and continue to be confident about the future,” said Dr Lütkestratkötter.