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EANS-News: ANDRITZ GROUP: Favorable business development in 2010

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  Corporate news transmitted by euro adhoc. The issuer/originator is solely
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Annual Reports/annual result/Financial Figures/Balance Sheet

Graz (euro adhoc) - Graz, March 8, 2011. International technology Group ANDRITZ showed favorable business development in the 2010 business year: - Sales amounted to 3,553.8 MEUR, which is 11.1% higher than the reference figure for 2009 (3,197.5 MEUR). With the exception of the METALS business area, where sales dropped significantly compared to 2009 due to the continuing difficult market environment in the international steel industry, all business areas were able to achieve a significant increase in sales compared to 2009. - The Group´s order intake rose by 23.4% to 4,131.9 MEUR (2009: 3,349.3 MEUR) - the highest level in the company´s history. This increase was mainly attributable to the HYDRO, PULP & PAPER, and ENVIRONMENT & PROCESS business areas. - The order backlog as of December 31, 2010 reached 5,290.9 MEUR, an increase of 19.3% compared to the previous year´s reference figure (December 31, 2009: 4,434.5 MEUR). - The EBITA amounted to 257.6 MEUR and was thus 57.0% higher than the reference figure for the previous year (2009: 164.1 MEUR), which was impacted by restructuring measures that were necessary due to the global economic crisis. Thus, profitability (EBITA margin) increased to 7.2% (2009: 5.1%). - The net income of the Group (excluding non-controlling interests) amounted to 179.6 MEUR (+85.5% vs. 2009: 96.8 MEUR). - The balance sheet structure as of December 31, 2010 continued to be solid: The total assets increased to 4,035.8 MEUR (December 31, 2009: 3,309.3 MEUR). The equity ratio was 19.7% (December 31, 2009: 20.0%). The liquid funds (cash and cash equivalents plus marketable securities) as of December 31, 2010 amounted to 1,594.7 MEUR (December 31, 2009: 1,082.1 MEUR). The net liquidity (liquid funds plus fair value of interest rate swaps minus financial liabilities) increased to 1,177.0 MEUR (December 31, 2009: 677.9 MEUR). - At the coming Annual General meeting, the Executive Board will propose to increase the dividend to 1.70 EUR per share (2009: 1.00 EUR).

Outlook for the 2011 business year: ANDRITZ expects a favorable market environment overall in 2011. Wolfgang Leitner, President & CEO of ANDRITZ AG, comments: `The positive market situation should continue for the HYDRO, PULP & PAPER, and ENVIRONMENT & PROCESS business areas. I also anticipate good project activity for both segments within FEED & BIOFUEL, however only the METALS business area should continue to face a more subdued economic environment.´

On the basis of these expectations, the high order backlog of almost 5.3 billion EUR and the recent receipt of some large orders, the ANDRITZ GROUP expects sales in 2011 to increase substantially compared to 2010; net income is also expected to rise.

- End -

Key figures of the ANDRITZ GROUP at a glance

(Acc. to IFRS)      Unit       2010      2009     +/-  Q4 2010  Q4 2009      +/-
Sales               MEUR    3,553.8   3,197.5  +11.1%  1,095.0    867.3   +26.3%
 HYDRO              MEUR    1,579.2   1,378.0  +14.6%    491.5    390.6   +25.8%
 PULP & PAPER       MEUR    1,105.3     903.3  +22.4%    337.6    232.1   +45.5%
 METALS             MEUR      340.2     473.4  -28.1%     93.9    121.5   -22.7%
 ENVIRONMENT &
 PROCESS            MEUR      375.4     322.6  +16.4%    129.8     94.9   +36.8%
 FEED & BIOFUEL     MEUR      153.7     120.2  +27.9%     42.2     28.2   +49.6%

Order intake        MEUR    4,131.9   3,349.3  +23.4%    896.1    794.4   +12.8%
 HYDRO              MEUR    1,870.1   1,693.9  +10.4%    328.7    315.4    +4.2%
 PULP & PAPER       MEUR    1,388.4     923.0  +50.4%    312.5    318.6    -1.9%
 METALS             MEUR      302.7     296.2   +2.2%    106.0     34.5  +207.2%
 ENVIRONMENT &
 PROCESS            MEUR      424.3     305.4  +38.9%    113.4     73.6   +54.1%
 FEED & BIOFUEL     MEUR      146.4     130.8  +11.9%     35.5     52.3   -32.1%

Order backlog (as
(of end of period)  MEUR    5,290.9   4,434.5  +19.3%  5,290.9  4,434.5   +19.3%

EBITDA              MEUR      307.3     218.2  +40.8%    105.2     71.5   +47.1%
EBITDA margin       %           8.6       6.8     -        9.6      8.2      -

EBITA               MEUR      257.6     164.1  +57.0%     92.7     62.1   +49.3%
EBITA margin        %           7.2       5.1     -        8.5      7.2      -

Earnings Before
Interest and Taxes
(EBIT)              MEUR      245.5     147.1  +66.9%     89.2     60.0   +48.7%

Financial result    MEUR        2.4       2.6   -7.7%     -1.4     -4.1   +65.9%

Earnings Before
Taxes (EBT)         MEUR      247.9     149.6  +65.7%     87.8     55.9   +57.1%

Net income (excl.
(non-controlling
interests)          MEUR      179.6      96.8  +85.5%     65.0     37.2   +74.7%

Cash flow from
operating
activities          MEUR      704.5     345.7 +103.8%    210.3      1.6    n.a.

Investment in
fixed tangible and
intangible assets   MEUR       68.8      70.5   -2.4%     32.1     19.1   +68.1%

Employees (as of
(end of period)     -        14,655    13,049  +12.3%   14,655   13,049   +12.3%

The ANDRITZ GROUP The ANDRITZ GROUP is a global market leader for supply of systems and services to the hydropower, pulp and paper, metals, and other specialized industries (solid/liquid separation, feed and biofuel). The Group is headquartered in Graz, Austria, and has a staff of approximately 14,700 employees worldwide. ANDRITZ operates over 120 production sites, service and sales companies all around the world.

Annual reports and financial reports The annual reports and annual financial reports of the ANDRITZ GROUP are available online and as PDF for download at the ANDRITZ website (www.andritz.com). Print versions can be requested by phone (+43 316 6902 2722) or e-mail (investors@andritz.com).

Disclaimer Certain statements contained in this press release constitute `forward-looking statements.´ These statements, which contain the words `believe´, `intend´, `expect´, and words of a similar meaning, reflect the Executive Board´s beliefs and expectations and are subject to risks and uncertainties that may cause actual results to differ materially. As a result, readers are cautioned not to place undue reliance on such forward-looking statements. The company disclaims any obligation to publicly announce the result of any revisions to the forward-looking statements made herein, except where it would be required to do so under applicable law.

end of announcement                               euro adhoc
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Further inquiry note:

Dr. Michael Buchbauer
Head of Group Treasury, Corporate Communications & Investor Relations
Tel.: +43 316 6902 2979
Fax: +43 316 6902 465
mailto:michael.buchbauer@andritz.com

Branche: Machine Manufacturing
ISIN: AT0000730007
WKN: 632305
Index: WBI, ATX Prime, ATX
Börsen: Wien / official market

Original content of: Andritz AG, transmitted by news aktuell

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