Hochtief dismisses long term recession as profits rise

Hochtief reported record 2008 sales of € 19,1 billion, up +16% on the € 16,4 billion recorded 12 months earlier. Pre-tax profits for the year also increased +3,7% to € 520 million, up from € 501 million.

"We are currently working on the assumption that international financial and capital markets will re-stabilise from 2010 and there will not be a sustained global recession," said Dr Herbert Lütkestratkötter, chairman of the Board.

"Achieving such good results in 2008 despite the turbulence in the world economy is a distinct sign of Hochtief's strength," said Dr Lütkestratkötter. "We have a forward order book equivalent to some one-and-a-half years' work and are clearly positioned for further growth."

Divisions

Hochtief Americas recorded a successful year with subsidiary Turner retaining its position as the number one general builder in the US while extending its position in the education and healthcare segments. Subsidiary Flatiron also performed well and cooperated with Turner on a number of projects including the construction of a new € 182 million terminal at Sacramento airport.

Hochtief Asia Pacific, led by subsidiary Leighton, secured a number of large scale contracts in infrastructure, building and contract mining. Through associate Al Habtoor Leighton Group in the Arabian region the company also reported notable divisional success.

The European division of the Group benefitted from growth in Eastern Europe and Russia as well as in Germany and returned to operational profit in the fourth quarter.

Hochtief Real Estate sustained its strong performance in 2008 with Hochtief Projektenwicklung commencing construction on 13 new projects in Central and Eastern Europe. Hochtief Property Management won the contract to manage the Aurelis portfolio in Germany comprising 24 million m² of land and 2 million m² of building space and in so doing became Germany's biggest property manager.