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Sat August 17 2019

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Strong first half for Hochtief

24 Jul German construction contractor Hochtief is expecting to see its profits grow by as much as 30% this year after a strong first half.

Hochtief made an operating profit of €296m in the first six months of 2019, up 25% on the previous year.

Sales of €12.0bn were up 7% year-on-year and Hochtief ended June 2019 with a net cash position of €1.3bn.

New orders secured during the six months were worth €14.6bn, an increase of €1.7bn year-on-year.

One of the most significant new orders received in the second quarter was the Cross River Rail PPP project in Brisbane, which involves several group companies. Flatiron has also taken on a rail contract – the Redlands Passenger Rail project in California. Elsewhere in North America, Turner has been awarded the redevelopment of the 2 Penn Plaza building in New York while in Germany Hochtief is responsible for the Heinrich Campus office building in Düsseldorf.

“We have increased sales by over €800m in the first six months of 2019. The greater proportion of our activities coming from our construction management, services and concessions including Abertis is driving an improved risk profile and enhancing the visibility of our profits and cash flow”, said CEO Marcelino Fernández Verdes.

“As we move into the second half of the year, which tends to be stronger due to sector seasonality, we are on track to achieve our FY 2019 guidance – backed by a solid order book and the positive outlook for our three divisions.”

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