However, the results from this reporting year are comparable with prior-year figures only to a limited extent because HOCHTIEF AirPort recognized nonrecurring effects of EUR 37.8 million in 2007 – these stemmed from changes resulting from the German corporate tax reform – as well as a special dividend arising from the refinancing of Sydney Airport totaling EUR 47.1 million. In 2008, HOCHTIEF AirPort recognized nonrecurring effects of EUR 33.7 million from the payment of a final contingent purchase price from HOCHTIEF AirPort Capital and a special dividend from Sydney. Adjusted for these nonrecurring effects, HOCHTIEF AirPort's operating earnings amounted to EUR 89.4 million in the reporting year, an increase of seven percent over the previous year. At EUR 22.6 million, HOCHTIEF PPP Solutions' operating earnings exceeded the prior-year figure by EUR 5.6 million. Contributing to this result were success fees from the awarding of the Maliakos-Kleidi and Elefsina- Patras-Tsakona toll road projects and the improvement of the project result for the Offenbach schools project.
Profit before taxes amounted to EUR 109.6 million. At HOCHTIEF AirPort, sustainable operating profit before taxes adjusted for nonrecurring items rose by EUR 2.4 million over the prior-year figure. HOCHTIEF PPP Solutions generated a result slightly higher than in the previous year.
Capital expenditure in fiscal 2008 amounted to EUR 27.7 million, far below the prior-year figure of EUR 131.3 million which had included acquisition of the investment in Budapest Airport and raising the stake in Sydney Airport by HOCHTIEF AirPort.
Outlook
The division expects a year without notable growth. HOCHTIEF Concessions is continually analyzing and optimizing the cost structures of the airport holdings and PPP projects.The aviation segment is under pressure due to the financial crisis. Since the airlines are trying to pass on the cost pressure they are experiencing to airports, at least in part, it is essential for HOCHTIEF AirPort to reinforce the competitiveness of its airport holdings for the long term and to develop additional growth potential.
HOCHTIEF PPP Solutions will concentrate on its existing competencies and expand these activities regionally, for example, in the USA where the market promises robust growth.
The key condition that must be in place for the projected further expansion of business activities is the availability of structured, long-term financing. The prerequisite here is that the financial markets begin functioning again"a development which is difficult to forecast.
On the whole, the HOCHTIEF Concessions division anticipates profit before taxes in 2009 to be far below the prioryear figure due to the nonrecurring items in 2008.
