HOCHTIEF Anual report 2008
 

HOCHTIEF Europe Division

Under the leadership of HOCHTIEF Construction, the HOCHTIEF Europe division draws together the Group"s portfolio of construction and construction-related services in Europe, focusing mainly on building construction, civil and structural engineering in selected countries in Western and Eastern Europe. Moreover, HOCHTIEF Construction also develops high-quality residential real estate. Outside of Europe, the company operates as a general contractor for large-scale projects. In addition, we offer numerous innovative business models and services along the entire construction value chain.

Additional restructuring measures introduced

In the year under review, the division continued to restructure its German building construction operations, a process begun in 2007, and launched additional measures to increase profitability. For instance, return targets for new projects were lifted, and pricing was adjusted strategically. The goal is to compensate HOCHTIEF Europe for the concrete value added created for its clients through innovative technologies and services. For this reason, service and solution packages of varying scope are now offered at different prices.

HOCHTIEF Europe's strategy of focusing our turnkey construction business on the partnership-based PreFair business model, optimizing risk management and boosting return on investment targets clearly increased the quality of earnings in the building construction business in Germany. Thanks to the "Subguard"* insurance model tried and tested at HOCHTIEF's subsidiary Turner, we are also protected from subcontractor default.

Boost for international business

The international business saw above-average growth rates, for example, thanks to projects in Greece, Eastern Europe and South Africa. Development in the civil engineering and infrastructure construction segments in particular was extraordinarily positive during the past fiscal year.

Enhanced cooperation throughout the Group

HOCHTIEF Construction is developing additional attractive sales and earnings potential through continually enhanced cooperation with other Group companies. For example, the company works in partnership with HOCHTIEF PPP Solutions on public-private partnership (PPP) projects. This is underscored by numerous orders received in 2008, such as the construction of the Maliakos-Kleidi and Elefsina- Patras-Tsakona freeways in Greece. HOCHTIEF Construction, HOCHTIEF PPP Solutions and HOCHTIEF Facility Management have also become firmly established as a seasoned team for public building construction projects based on the PPP model.

Further progress in real estate development business

HOCHTIEF Construction has become established as one of the leading residential real estate developers in Germany with the FormArt brand. This unit concentrates on first-rate residential properties in exclusive locations. During the year under review, a large number of projects were completed and the construction of new residential buildings begun.

Sustainable growth potential

As an innovative, profitability-focused company, HOCHTIEF< Construction identifies new, high-growth segments at an early stage and establishes itself in these markets. Renewable energies and sustainable construction are among these segments. We therefore further expanded our operations in areas such as the market for offshore wind plants. Together with HOCHTIEF PPP Solutions, we are one of the top companies in the geothermal market. In addition, HOCHTIEF is already the market leader in sustainable construction.


 
HOCHTIEF Anual report 2008 | Copyright 2009 HOCHTIEF