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Hochtief Reports Full-year Loss; Sees Profit In 2012 Below 2010 Levels

German construction company Hochtief AG (HOCFF.PK) reported Wednesday a loss for full year 2011, citing a difficult macroeconomic environment and problems related to large-scale infrastructure projects in Australia. The company expects to report profit in 2012, but below 2010 level. Based on full-year results, the company decided not to distribute dividend for fiscal 2011.

Frank Stieler, chairman of the executive board of the company said, "We managed to position HOCHTIEF as a strong player in the expansion of energy and transportation infrastructure in spite of all the challenges. We are confident the way is now clear for new successes with this strategy."

Hochtief also said it plans to enter the US renewable energy market.

For the full year 2011, the company's consolidated net loss was 160.3 million euros, compared to a net profit of 288 million euros reported last year. On a per share basis, loss was 2.18 euros, compared to earnings of 4.31 euros per share a year earlier.

Pre-tax loss was 127 million euros, in comparison with a pre-tax profit of 756.6 million euros a year ago.

The company said year 2011 results reflected negative non-recurring items and inherited issues.

External sales for the year grew 15.5 percent to 23.28 billion euros from 20.16 billion euros in the previous year.

New orders declined 14.4 percent to 25.37 billion euros, while order backlog was 44.62 billion euros, up 2 percent from the preceding year.

For 2012, the company expects new orders to normalize somewhat below the prior-year level and sees order backlog and sales to normalize at a level beneath the 2011 record.

Since the company reported loss for the full year, the board decided not to distribute dividend for fiscal 2011.

In Frankfurt's Xetra, Hochtief shares are currently trading at 52.20 euros, down 5.38 percent.

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by RTT Staff Writer

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