A N N U A L R E P O R T A N D A C C O U N T S - CMVM

Management Report of the Board of Directors - Financial Year 2008
In this regard, a very positive factor is Teixeira Duarte
Group’s Orders Portfolio for the construction sector, which
has reached a significant overall amount of EUR 2,018,575
thousand, allowing the Group to assure good activity levels,
especially in such an unfavourable context as the current one.
The fact that this sector represents the Group’s core business
and the activity developed by the Parent Company that
supports and/or heads, with articulated operations, the activity
of its investee companies and of the Groups and Consortiums,
imposes, not only for that reason, but also due to regulatory
impositions, that the activity framework is defined and a
general analysis of the performance of “TEIXEIRA DUARTE -
Engenharia e Construções, S.A.” is provided, followed by a
description of the operations in the internal and external
markets, specifying, in the first case, the activities by
companies and groupings and, in the second, by countries.
IV.1.1. - “TEIXEIRA DUARTE - Engenharia e Construções,
S.A.” - GENERAL ANALYSIS
“TEIXEIRA DUARTE - Engenharia e Construções, S.A.”
operating profit was EUR 640,841 thousand, which is
considered quite positive, especially taking into account that,
in a year of great difficulties in this sector, it reflects a 32.6%
increase compared to the amount achieved last year.
Main Economic and Financial indicators of
“TEIXEIRA DUARTE - Engenharia e Construções, S.A.”
Growth %
2004 2005 2006 2007 2008 2008/2007
Employees 1,756 1,684 1,676 1,722 1,816 5.5%
Sales/Service Provision 390,357 339,127 392,711 453,023 592,930 30.9%
Operating Profit 367,338 343,988 419,885 483,206 640,841 32.6%
EBITDA 24,816 20,624 5,926 20,416 43,952 115.3%
EBITDA/Turnover 6% 6% 2% 5% 7% 64.5%
Net Results 29,860 66,357 49,301 56,935 (196,358) -
Total Net Assets 770,724 937,279 917,365 1,188,826 1,083,200 (8.9%)
Equity 251,295 311,908 337,593 382,896 206,919 (46.0%)
Total Liabilities 519,429 625,371 579,772 805,930 876,301 8.7%
Bank Indebtedness 332,073 409,900 357,180 476,739 423,352 (11.2%)
EBTIDA/Bank Indebtedness 7% 5% 5% 4% 11% 183.4%
Financial Autonomy 33% 33% 37% 32% 19% (40.7%)
General Liquidity 239% 238% 237% 293% 124% (57.8%)
Teixeira Duarte is structured on solid ground, with different
Operation Centres and Central Directorates (see the
organisation chart attached to this document), which interact and
create compensation mechanisms leading to the rationalisation
and optimisation of resources, boosting a growing improvement
of productivity rates so that, in an integrated manner, having a
technically demanding operation, with more consistency and
good use of the commercial function in the current conjuncture.
In the year under review, the Company followed the development
of Public and Private Sector activities, having participated in
the Tenders that were launched, proving, with regard to Public
Concession Tenders and Private Public Partnerships, great
technical and financial capacity, insofar as it has been able, on
one hand, to deploy the required financial resources for the
undertakings in question and, on the other hand, to meet the
required nature, dimension and complexity of the works with
an adequate and technically well-prepared labour force.
In relation to the previous year, the desired changes in the
internal market did not take place, with the deterioration of
bidding prices in the tenders launched, a trend that has been
reinforced in an ongoing manner for the past few years.
Despite this fact, the Company’s commercial activity has been
strengthened so that it can technically respond, in a sustained
manner, to the new tenders, which, although fewer, are, due to
their nature, more demanding and complex. Thus, the different
Central Directorates for Price Quotations, Studies and Projects
contributed significantly to Teixeira Duarte’s participation in the
most important tenders launched in Portugal.
In parallel, in the external markets where the Company
operates, a regular and intensive commercial activity has
been developed, with the study and follow-up of the
opportunities considered to be relevant, leading to its
participation in several tenders.
Thus, the joint effort of the Company’s different sectors, from
the Technical-Commercial to the Production one, led to the
submission of 816 bids, for an overall sum of EUR 6,031,626
million, of which 70 were in association and amounted to EUR
2,659,588 thousand.
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