Hochtief Becomes Profitable As Sales Rise

FRANKFURT--German construction company Hochtief AG (HOT.XE) said Wednesday it swung to a net profit in the second quarter, helped by one-offs, as sales rose.

Net profit was 82.7 million euros ($109.8 million), after a EUR15.7 million loss a year earlier. Leighton Holdings Ltd. (LEI.AU), majority-owned by Hochtief, sold a stake in telecommunications assets, which boosted earnings after provisions for the Elbe Philharmonic Hall in Hamburg depressed them last year. Operational earnings rose to EUR397.8 million from EUR229.9 million.

Sales increased to EUR7.11 billion from EUR6.44 billion amid a large order backlog at the Asia-Pacific business. Order intake, however, declined to EUR6.06 billion from EUR8.65 billion.

Hochtief adjusted its full-year guidance for the sale of its service solutions business. The company now sees operational pre-tax earnings at EUR580 million to EUR660 million and a net profit of EUR160 million to EUR200 million.

Non-operational effects, such as one-offs related to agreed divestments and costs of restructuring measures, are not included in this operational guidance and will have a significant positive effect. The guidance also excludes the contributions from the airport and service solutions units.

Write to Friedrich Geiger at [e-mail]

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