Germany's Hochtief 2Q Results Hit By Problems At Leighton
August 17 2011 - 1:54AM
Dow Jones News
German construction company Hochtief AG (HOT.XE) Wednesday said
it still expects net profit for the full year to be above the 2010
level, as consolidated second-quarter net profit dropped to EUR13.8
million from EUR54.1 million in the same period a year earlier as
"problems at subsidiary Leighton Holdings Ltd. (LEI.AU) continued
to take their toll on earnings performance."
MAIN FACTS:
-"Of course we are not satisfied with these results," Hochtief
Chief Executive Frank Stieler said in a statement, but added that
aside from Asia Pacific operations, all divisions performed
strongly in the first half-year.
-External sales increased on the year to EUR5.46 billion from
EUR5.08 billion in the second quarter of 2010.
-Order intake fell on the year to EUR7.63 billion from EUR9.47
billion.
-Profit before taxes fell to EUR10.2 million from EUR181 million
in the second quarter of 2010, ahead of the EUR400,000 pretax loss
a Dow Jones Newswires poll of seven analysts had expected.
-Earnings before interest, tax and amortization, or EBITA,
dropped to EUR54 million from EUR239.2 million in the same period a
year earlier.
-For 2011, the company still expects new orders, work done, and
the order backlog to be below the prior year, and for sales to be
broadly on a par with 2010.
-Hochtief still expects profit before taxes to be about half the
prior-year figure,
-The company backed its guidance for pretax profit of
approximately EUR1 billion and consolidated net profit of about
EUR500 million in 2012, and pretax profit of over EUR1 billion and
consolidated net profit of around EUR450 million from the operating
business in 2013.
-Frankfurt Bureau, Dow Jones Newswires; 49-69-29725-500