The macroeconomic situation has caused delays in the sale of the airport activities. HOCHTIEF is still in close negotiations and is confident of being able to seal the transaction in the near future. It is nonetheless possible that this will no longer happen in 2011 as previously announced. HOCHTIEF is also reviewing the assessment of potential risks for individual PPP road contracts in Greece and Chile. This relates to the HOCHTIEF Concessions and HOCHTIEF Europe divisions.
The Group therefore supplements its guidance for 2011 as follows:
Under the assumption that the airport transaction can be successfully concluded in 2011, HOCHTIEF confirms its previous guidance for 2011. The Group then expects profit before taxes to exceed half the prior-year figure and consolidated net profit to be above its prior-year level. This still applies if the above-mentioned review results in additional provisioning.
If the sale of the airport activities no longer takes place in 2011, HOCHTIEF still expects strong operating earnings (EBITA) of some EUR 100 million - despite the losses incurred at Leighton in the first half of the year. However, there would then be a loss before taxes in the low double-digit millions of euros and a consolidated net loss of approximately EUR 100 million. This still applies if the above-mentioned review results in additional provisioning.
In light of the increasingly uncertain macroeconomic environment, HOCHTIEF is revising its guidance for 2012 as follows:
The Group now expects profit before taxes and consolidated net profit significantly higher than the current record set in 2010. These will include the planned extraordinary items resulting from the sale of the interests in aurelis Real Estate and all earnings effects from the airports sale in 2012.
The Group is retaining its previous guidance for 2013 unchanged:
HOCHTIEF expects to attain pretax profit in excess of EUR 1 billion and consolidated net profit of around EUR 450 million for 2013, purely out of the operating business.
All planning is based on the assumption that there will be neither a further marked slowdown in the global economy or disruptions in the financial markets, nor actions by specific governments that materially affect HOCHTIEF’s business.