ONE ROOF

66 Annual Report 2009
Operating earnings and profit before taxes well
up on the prior year
HOCHTIEF achieved outstanding earnings figures in
spite of the global economic downslide in the year under
review. Operating earnings/EBITA rose compared
with the prior year (EUR 652.9 million) by 17.5 percent
to EUR 767.2 million. The quality of Group earnings is
underscored by the fact that all operating divisions
contributed positively to the total. The HOCHTIEF Group
profited especially from the improved earnings situation
in the HOCHTIEF Europe division. Focusing on highearnings
market segments and turning away from the
ruinous competition on price in the German building
construction market paid off here. After posting a EUR
30.3 million loss in the prior year, HOCHTIEF Europe
was comfortably back in the black with operating earnings
of EUR 26.7 million in 2009. With EUR 535.6 million,
the HOCHTIEF Asia Pacific division delivered a
contribution to operating earnings in fiscal 2009 that
was both exceptionally strong and represented a
marked 25.3 percent improvement on the prior year
(EUR 427.5 million). The financial crisis also made itself
felt here, however, impacting on the project development
business in Australia and the building construction
market in Dubai. In contrast, demand for commodities
picked up toward the year-end to produce a stable
earnings contribution from the contract mining segment.
The HOCHTIEF Americas division did well in a difficult
business environment and likewise raised operating
earnings, posting EUR 110.1 million in 2009 compared
with EUR 102.8 million in the prior year. Our strategy of
placing the business of the HOCHTIEF Americas division
on a broader footing and of entering the US civil
engineering market with the Flatiron acquisition has delivered
results. It has also been possible to cushion the
impact of the difficulties in the US general building sector
thanks to Turner’s specialized range of services in
the education, healthcare and green building market
segments. The appreciation of the US dollar relative
to the euro also had a positive effect on HOCHTIEF
Americas earnings. International air transport saw a
sharp drop in cargo and passenger numbers as a re-
sult of the economic crisis. Investor and lender reticence
in the provision of long-term structured finance also
held back growth in the market for PPP projects. This
affected the earnings performance of the HOCHTIEF
Concessions division, whose operating earnings remained
comfortably positive at EUR 113.9 million but
were down on the prior year (EUR 145.7 million). The
real estate investment and office rental market was overshadowed
by the overall economic trend and registered
a marked fall in transaction volumes. The HOCHTIEF
Real Estate division performed in line with our expectations
and attained operating earnings of EUR 53.2 million
(2008: EUR 59.2 million). The HOCHTIEF Services
division generated good operating earnings of EUR 19
million, but fell short of the EUR 26.8 million prior-year
figure due to short-time working and caution with regard
to capital expenditure on the part of several industrial
clients.
Net income from participating interests was EUR
229.8 million in fiscal 2009 compared with EUR 306
million in the prior year. Much of the decrease was accounted
for by the HOCHTIEF Asia Pacific division,
where net income from participating interests relating
to jointly controlled entities at Leighton was significantly
down on the very high prior-year levels. Overall, the
HOCHTIEF Asia Pacific division earned net income
from participating interests of EUR 97.9 million, down
from EUR 159.2 million in the prior year. HOCHTIEF’s
airport holdings were not able to fully break free from
the impacts of the economic downturn in 2009. Net
income from participating interests in the HOCHTIEF
Concessions division came to EUR 98.1 million, below
the comparative prior-year figure (EUR 119.2 million). It
is necessary to note in this regard that the prior-year
figure was boosted by the special dividend received
from Sydney Airport. In the HOCHTIEF Real Estate division,
net income from participating interests was dominated
by aurelis Real Estate. Due to the difficult market
situation, net income from participating interests in that
division fell to EUR 10.3 million (2008: EUR 20.2 million).