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FRANKFURT — German construction company and airport operator Hochtief AG said Friday that second quarter net profit fell 6 percent but that the order backlog increased to an all-time high despite the economic crisis.
It also said it expects to match last year's earnings in 2009, sending shares in the company up sharply.
The Essen-based company said the net profit of euro44 million ($63 million) for the April-June period compared with a profit of euro47 million in the second quarter of 2008.
Divisional sales for the period fell 9 percent to euro4.8 billion from euro5.3 billion in the second quarter a year ago.
However, the order backlog, rose 6 percent to an all-time high of euro33.1 billion from euro32 billion a year earlier. Work done, a preliminary measure of revenue, rose about 2 percent to euro5.4 billion from euro5.3 billion.
Hochtief remains "rock steady through the crisis and stands on very sound foundations," the company said in its report.
"All divisions are contributing toward consolidated net profit," said chief executive Herbert Luetkestratkoetter. "Our financing is secure for the long term."
For the full year, the company said "the group is working on the assumption that the international financial and capital markets will normalize again from 2010, that no ongoing recessionary slowdown will occur in the global economy."
Hochtief said it expected new orders, the order backlog and group sales to be somewhat below 2008 levels but that pretax and net profit would reach 2008 levels. In 2008, the company reported net profit of euro175 million on sales of euro19.4 billion.
Hochtief, which is involved in large construction projects like office buildings and schools, owns the construction subsidiaries Turner and Flatiron in the U.S. and Leighton in Australia.
Regarded as a steady income business, Hochtief also has stakes in airports including Duesseldorf, Germany; Tirana, Albania; and Sydney, Australia.
Investors liked the results and outlooks, sending shares of Hochtief more than 8 percent higher to euro47.80 in Frankfurt morning trading.
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