The effective tax rate was 34.2 percent and thus stayed at a low level. There was a moderate rise compared with the prior year (2007: 32 percent), the effective tax rate having been reduced in fiscal 2007 by extraordinary items in the airports segment.
Profit after taxes, at EUR 342.2 million, was slightly up on the high prior-year figure of EUR 341 million. The amount attributed to consolidated net profit grew even more strongly. Consolidated net profit rose by a significant 24.4 percent or EUR 34.4 million, from EUR 140.7 million in 2007 to EUR 175.1 million in 2008. In contrast, the minority interest dropped sharply. The minority interest was EUR 167.1 million, a fall of EUR 33.2 million or 16.6 percent from the prioryear figure (2007: EUR 200.3 million). This change was driven by a shift in divisional earnings contributions compared with the prior year. The minority interest was reduced by both an increase in earnings at Group companies with little or no minority share of equity and a decrease at Group companies in which minority stockholders hold a large share.
With the presented results, and despite the financial crisis, we have attained in full the increased forecast for the Group published in our interim report as of September 30, 2008. Group sales, profit before taxes and consolidated net profit are – as predicted – above the figures for 2007.
Cash flow
Consolidated statement of cash flows
HOCHTIEF's operating activities generated another strong positive cash flow of EUR 266.1 million in 2008. This was nonetheless down on the prior year (2007: EURStatement of Cash Flows for the HOCHTIEF Group (Summary)*
| (EUR million) | 2008 | 2007 |
|---|---|---|
| Net cash provided by operating activities | 266.1 | 609.3 |
| Net cash used for investment activities | (901,3) | (1,554.6) |
| Net cash provided by financing activities | 1,046.1 | 1,035.2 |
| Net cash increase in cash cash and equivalents | 410.9 | 89.9 |
| Cash and cash equivalents of year-end | 1,787.7 | 1,402.5 |
609.3 million), mainly due to a further rise in net cash tied up in working capital. The main factor at play here was growth in the operating business and the resulting rise in trade receivables. Aside from the HOCHTIEF Real Estate division, the HOCHTIEF Asia Pacific division recorded a particularly large increase in receivables.
HOCHTIEF undertook very substantial capital expenditure on property, plant and equipment and financial assets in 2008, once again exceeding the EUR 1 billion mark. As expected, however, at EUR 1.16 billion, total capital expenditure fell short of the prior-year record (2007: EUR 1.77 billion). Purchases of intangible assets and property, plant and equipment accounted for EUR 645.5 million of the 2008 total (2007: EUR 703.2 million). The main focus of capital expenditure was once again on property, plant and equipment at Leighton. Carrying out large infrastructure projects and the asset-intensive contract mining business necessitated a capital outlay of EUR 538.7 million (2007: EUR 638.3 million) in the HOCHTIEF Asia Pacific division.
After a record level of investment spending on financial assets in the prior year, HOCHTIEF concentrated in the year under review on targeted additions and scaled back expenditure to a normalized level. At EUR 510.5 million, investment outlay on financial assets was therefore well down on the prior year (2007: EUR 1.07 billion). The lion's share was again accounted for by investment at Leighton in infrastructure project companies and in the interest acquired during 2007 in the Gulf construction company Al
