The Americas division focused among other things on Flatiron's integration into the Group and its collaboration with Turner and HOCHTIEF PPP Solutions. The Supervisory Board dealt on a regular basis with the development of the business and the progress being made on the networking front, which exemplifies the cross-selling potential within the Group. It also focused on the effects of the subprime-triggered financial market crisis on Turner's US construction business and its markets and market segments, which nevertheless remain in robust health and on a growth path. Another issue in the spotlight was the provision of bonds as security, particularly for public-sector clients"a practice vital to our business operations. The Supervisory Board devoted special attention to the situation at HOCHTIEF do Brasil and the losses on the construction of small hydroelectric power stations as a result of bad weather.
For the division as a whole, it can be said that the US-led economic crisis has so far had very little impact on the business of Turner and Flatiron; on the contrary, it offers opportunities and a bright outlook for growth, both in the segments of the construction market for healthcare and commercial properties and in the civil engineering market as a result of the infrastructure programs planned by the US government and the related plans in the concessions segment for toll roads and PPP projects.
In the Asia Pacific division, discussions centered on the strong performance sustained by Leighton, which matched the operating records set in 2007 and invested heavily in its infrastructure and contract mining businesses. Another main topic of discussion was the general business trend in the Australian and Asian construction and commodity markets. This led to the stock issue at Leighton Holdings Limited, which is to be used to finance growth initiatives such as expansion into selected Asian and Arab countries, the internationalization of the contract mining business and entry into the Australian market for residential real estate development projects. The Supervisory Board also
The Supervisory Board welcomed the formation of the new Concessions division, which combines the airport and PPP business segments.
The Supervisory Board received regular information on the performance of the individual airport holdings and looked in particular at the possible effects of a drop in passenger numbers in response to the economic crisis. The assumption of responsibility for operations at Budapest Airport and the latter's financial performance received especially close attention. HOCHTIEF AirPort ranks among the leading airport managers worldwide and has strengthened its position as a creator of value for the entire Group.
At HOCHTIEF PPP Solutions, discussions focused on the company's entry into the US PPP market and the benefits in this context of its collaboration with Flatiron. Active portfolio management has already proven its worth as a core element of the business strategy, paving the way for HOCHTIEF PPP Solutions to post its first operating profit.
In the Real Estate division – which, following the restructuring, comprises the project development and property management businesses – discussions centered on the activities of aurelis and the solid results from this participating interest, the successful expansion strategy being pursued in new markets (Switzerland, Russia) and product segments (nursing care facilities and healthcare properties) and strict project selection in response to the shocks to the market brought on by the financial crisis. The Supervisory Board also concerned itself with HOCHTIEF Property Management, now one of Germany's leading businesses, with trends in the rental and investment markets as well as with the impact of the economic environment on individual projects.
