Hochtief profits up

Hochtief announced first quarter profits of €72 million, representing a 19% increase on the same period a year ago.

The company’s new orders were also up, 31% year-on-year to €6.2 billion.

Marcelino Fernández Verdes, chairman of the executive board, said, “We are sustaining our positive forward momentum.”

Hochtief’s revenues, however, were down 13% year-on-year in the first quarter of 2016 to €4.414 billion.

All the company’s divisions delivered improvements in the first quarter. Its Americas region increased new orders by 36% to €3.6 billion, which is a record figure for a first quarter. Its operational net profit also rose 30% to €31 million.

Asia Pacific, meanwhile, improved its margins and cash flow, with new orders more than doubling to €2.3 billion.

Europe maintained its positive trend, generating an operational net profit of €4 million, compared to no profit in the first quarter of 2015.

Hochtief said it expected its operational net profit to be between €300 and 360 million, which would be an increase of around 15 to 35%.

Verdes added, “Hochtief is now well positioned to take advantage of organic and market growth opportunities.”

Meanwhile, Hochtief has been awarded a €200 million contract for the construction of Mercedes Platz in Berlin, Germany.

Mercedes Platz will be built in front of the Mercedes Benz Arena, and the company said it should become the vibrant heart of the dynamically growing urban quarter adjacent to the East Side Gallery.

The project comprises offices, restaurants, bars, hotels, a cinema and a music club for up to 4,000 people.

Construction will begin in June this year, and is expected to be completed in 2018.