Orders and work done at the HOCHTIEF Group were again marked by record levels of new orders, work done and order backlog. This is the fifth year in a row that the prior-year figures have been exceeded – impressive proof of HOCHTIEF's ability to continuously perform at its best.
This new record figure in 2008 was again driven by the expanding markets in the Asia-Pacific region. In the HOCHTIEF Asia Pacific division, new orders increased by a further AUD 5.07 billion (29.7 percent) compared with 2007 thanks to new large-scale projects.
The HOCHTIEF Americas division remained at the exceptional level of the previous year. The decline at our US subsidiary Turner was more than offset since, in contrast to
The HOCHTIEF Europe division continued to consolidate the business in Germany in the reporting year (down EUR 0.26 billion or 16.6 percent). New orders fell substantially in Russia compared with 2007 (down EUR 0.39 billion or 77.5 percent). These decreases in Germany and Russia were more than offset by increased new orders in Western Europe (up EUR 0.70 billion). Of particular note here was the increase in Greece (up EUR 0.62 billion), due to the major Maliakos-Kleidi and Elefsina-Patras-Tsakona toll road projects.
At the end of 2008, the HOCHTIEF Real Estate division faced challenges in particular from the financial crisis. New orders dropped significantly in the property development business segment (down EUR 0.30 billion or 36.1 percent). In the current market environment, the start of new property development projects is checked with particular care in view of outstanding real estate sales.
In the HOCHTIEF Services division, new orders in 2007 were shaped especially by an extremely large-scale project for schools in the UK. Since no comparable project was won in 2008, international business accordingly saw a decrease in new orders (down EUR 0.30 billion or 82.4 percent). Development was decidedly more positive in Germany
The vast majority of the HOCHTIEF Concessions division's holdings are not fully consolidated. The high volume of new orders of the Al Habtoor Leighton Group is also not included due to equity-method consolidation. Thus these statistics do not include some of the high-volume new orders.
Overall, HOCHTIEF's new orders in Germany decreased as projected compared with 2007 (especially in building construction) (down EUR 0.64 billion or 20.1 percent). By contrast, the international segment recorded an increase of 11.9 percent. Internationally posted new orders now account for a total of 89.9 percent.
The rise resulted primarily from solid contributions from Leighton's infrastructure and contract mining projects in the Asia-Pacific region and building construction business in the USA, where Turner, as the leading provider, played a significant part in the increase. Within Europe, work done increased again at HOCHTIEF Europe (up 12.9 percent), HOCHTIEF Real Estate (up 56.2 percent) and HOCHTIEF Services (up 21.8 percent). While HOCHTIEF Europe's growth was generated almost exclusively on international markets, work done at HOCHTIEF Real Estate and HOCHTIEF Services increased both in Germany and internationally in 2008.
This was the second year in a row that work done increased in Germany. The absolute figure of EUR 2.82 billion represents a rise of 17.2 percent (2007: EUR 2.41 billion). By way of long-term service and concession agreements, HOCHTIEF Concessions and HOCHTIEF Services contributed substantially to the increase. At EUR 1.58 billion,
The share of Group work done attributable to international business, namely 87 percent, clearly illuminates once again the Group's international orientation.
Despite huge growth of 15.3 percent, Group work done in 2008 fell short of new orders by EUR 3.64 billion. Accordingly, the order backlog grew further.
Whereas the order backlog in Germany declined by 8.2 percent in 2008 compared with 2007, the order books for international business were much better filled (up 5.2 percent). The increase in the backlog was principally attributable to Leighton's extremely good business performance.
Based on the current annual work done figure, the Group has a forward order book of almost one and a half years.
