Due to the reduction of the profit forecast of its Australian subsidiary Leighton, HOCHTIEF has reduced its own forecast for the current business year 2011. Depending on the volume and result of the share divestment in HOCHTIEF Concessions, the Management Board of HOCHTIEF expects a reduction of the group profit before tax to half of last year‘s group profit before tax. The consolidated net group profit is expected to exceed last year‘s consolidated net profit.
The HOCHTIEF profit forecasts for the business years 2012 and 2013 are still not affected.
The adverse effects on the profits of Leighton are in particular caused by a loss expected for the road project Airport Link in Brisbane, a significantly reduced profit expectation for the construction project Victoria Desalination Plant close to Melbourne as well as a write-down of the book value of Leighton‘s holding in the Habtoor Leighton Group and a provision for not yet recovered receivables at Habtoor Leighton Group.
Leighton made an announcement in this respect to its shareholders this morning after it had completed the announced review of its profit forecast.
In addition, Leighton has announced a capital increase with subscription rights in the amount of AUD 757 million. The proceeds from the capital increase are supposed to be used to improve Leighton‘s balance sheet ratio, provide financial flexibility for growth and support investment grade credit rating metrics.
HOCHTIEF will participate in this capital increase corresponding to the percentage of its shareholding in Leighton