Profits Down 73% At Hochtief CZ

Prague, June 21 (CTK) – Net profit of Hochtief CZ construction company sank by 73 percent to Kc30m last year, while in the previous year it more than doubled, and sales increased by 1 percent to Kc5.14bn, spokesman Michal Talian told CTK today.


The results reflected the impacts of the highly competitive market, low selling prices in public contracts and minimum profit margins from the past years, said board member Jorg Mathew.


This impact of the previous period is typical for construction. Tenders and implementation of projects usually take many months or even years so the current results are copying the situation from the past time, he added.


Among larger projects which the company launched last year are reconstruction of the Negrelli Viaduct in Prague, modernisation of the Ceske Budejovice airport and construction of part of D3 motorway near Cadca, Slovakia, made by Hochtief Slovakia subsidiary.


Completed projects include construction of Povazsky Chlmec motorway tunnel in Slovakia, a part of newly built bypass of Zilina.


The number of the company’s employees grew by almost 100 to 1,092 as of the end of last year.


German construction group Hochtief has been operating on the Czech market since 1999 when it bought VSB company.


Metrostav, the leader on the domestic building market, raised sales by 11.4 percent to Kc19.6bn last year and its net profit dropped by 20.7 percent to Kc392.9m.