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EANS-News: ANDRITZ GROUP: satisfactory business development in Q2/H1 2012

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  Corporate news transmitted by euro adhoc. The issuer/originator is solely
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quarterly report


Graz (euro adhoc) - Graz, August 7, 2012.  International technology Group
ANDRITZ showed satisfactory business development in Q2/H1 2012:
 - Sales of the ANDRITZ GROUP amounted to 1,252.1 MEUR in the second quarter of
   2012, which is an increase of 15.1% compared to last year's reference period
   (Q2 2011: 1,087.4 MEUR). Particularly the PULP & PAPER business area noted a
   sharp rise in sales. In the first half of 2012, sales of the Group reached
   2,437.8 MEUR (+21.2% vs. H1 2011: 2,011.1 MEUR).

 - The order intake, in the second quarter of 2012 at 1,193.2 MEUR and in the 
   first half of 2012 at 2,554.4 MEUR, reached a satisfactory level overall - 
   even though it was significantly below the very high reference figures of 
   last year (-39.7% vs. Q2 2011: 1,978.5 MEUR and -29.9% vs. H1 2011: 3,644.5
   MEUR), which included two large PULP & PAPER orders (a 350 MEUR order booked
   in Q1 2011 and a 750 MEUR order booked in Q2 2011). In the SEPARATION and 
   FEED & BIOFUEL business areas in particular, the order intake developed very 
   favorably in the second quarter of 2012.
 
 - The order backlog as of June 30, 2012 amounted to 6,935.9 MEUR, thus 
   increasing slightly compared to the reference value as of December 31, 2011 
   (6,683.1 MEUR: +3.8%).

 - EBITA in the second quarter of 2012, at 83.1 MEUR, rose by 10.1% compared to
   last year's reference figure (Q2 2011: 75.5 MEUR). EBITA margin, at 6.6%, 
   was lower than in the second quarter of 2011 (6.9%). This is mainly 
   attributable to PULP & PAPER (execution of large orders) and SEPARATION
   (expenses for regional expansion). In the first half of 2012, the EBITA 
   increased to 155.6 MEUR (+18.2% vs. H1 2011: 131.6 MEUR); the EBITA margin,
   at 6.4%, was practically unchanged compared to last year's reference figure
   (H1 2011: 6.5%).

 - Net income (excluding non-controlling interests) increased by 22.8% compared
   to the previous year's reference period to 108.7 MEUR (H1 2011: 88.5 MEUR).

 - The net worth position and capital structure as of June 30, 2012 remained 
   solid. The equity ratio was at 20.3% (December 31, 2011: 20.6%). Liquid 
   funds amounted to 1,631.2 MEUR (December 31, 2011: 1,814.5 MEUR) and the
   net liquidity to 1,205.0 MEUR (December 31, 2011: 1,400.6 MEUR). This 
   decline is mainly due to the purchase of approximately 25% of the shares in 
   Schuler AG (slightly less than 150 MEUR).

Commenting on the expectations for the 2012 business year, President and CEO
Wolfgang Leitner says: "In spite of the increasing uncertainty with regard to
the economic development in our main end customer industries as well as in China
and South America, we currently still see sufficient project activity in the
majority of the markets that we serve."

On the basis of these expectations and given the very high order backlog of
slightly less than 7 billion EUR as of June 30, 2012, the ANDRITZ GROUP expects
an increase in sales in 2012 in comparison with the previous year's figures. The
net income is also expected to rise compared to last year. If, however, the
global economy continues to suffer more severe setbacks in 2012, this could have
a negative impact on the sales and earnings developments of the ANDRITZ GROUP,
making it impossible to achieve the sales and earnings targets set.

- End -

Key financial figures of the ANDRITZ GROUP at a glance


(Acc. to IFRS; in MEUR)  H1 2012   H1 2011   +/-      Q2 2012   Q2 2011   +/-
Sales                    2,437.8   2,011.1   +21.2%   1,252.1   1,087.4   +15.1%
 HYDRO                     807.0     805.1    +0.2%     403.6     440.6    -8.4%
 PULP & PAPER*           1,163.7     794.2   +46.5%     600.2     420.9   +42.6%
 SEPARATION*               200.5     179.1   +11.9%     110.5      97.8   +13.0%
 METALS                    176.7     162.1    +9.0%      87.3      91.0    -4.1%
 FEED & BIOFUEL             89.9      70.6   +27.3%      50.5      37.1   +36.1%

Order intake             2,554.4   3,644.5   -29.9%   1,193.2   1,978.5   -39.7%
 HYDRO                   1,113.2   1,097.1    +1.5%     515.7     513.2    +0.5%
 PULP & PAPER*             981.2   2,053.7   -52.2%     451.8   1,236.2   -63.5%
 SEPARATION*               259.4     237.0    +9.5%     135.3     112.5   +20.3%
 METALS                    111.3     183.1   -39.2%      47.0      78.4   -40.1%
 FEED & BIOFUEL             89.3      73.6   +21.3%      43.4      38.2   +13.6%

Order backlog
(as of end of period)    6,935.9   7,249.0    -4.3%   6,935.9   7,249.0    -4.3%

EBITDA                     184.7     157.0   +17.6%      98.2      88.3   +11.2%
EBITDA margin               7.6%      7.8%      -        7.8%      8.1%      -

EBITA                      155.6     131.6   +18.2%      83.1      75.5   +10.1%
EBITA margin                6.4%      6.5%      -        6.6%      6.9%      -

Earnings Before Interest
and Taxes (EBIT)           143.1     123.1   +16.2%      76.4      71.1    +7.5%

Financial result             6.7       4.0   +67.5%       3.3       1.0  +230.0%

Earnings Before 
Taxes (EBT)                149.8     127.1   +17.9%      79.7      72.1   +10.5%

Net income 
(excluding non-
controlling interests)     108.7      88.5   +22.8%      58.2      51.5   +13.0%

Cash flow from
operating activities       119.4     206.8   -42.3%      88.2      55.7   +58.3%

Investment in fixed
tangible and intangible
assets                      34.5      23.5   +46.8%      15.0      13.2   +13.6%

Employees
(as of end of period)     17,420    16,119    +8.1%    17,420    16,119    +8.1%

* At the beginning of 2012, there was a minor product shift from the SEPARATION
to the PULP & PAPER business area. Comparison figures for 2011 have been
adjusted accordingly in both business areas.

The ANDRITZ GROUP
International technology Group ANDRITZ is a globally leading supplier of plants,
equipment, and services for hydropower stations, the pulp and paper industry,
solid-liquid separation in the municipal and industrial sectors, the steel
industry, and the production of animal feed and biomass pellets. In addition,
ANDRITZ offers technologies for certain other sectors including automation,
pumps, machinery for nonwovens and plastic films, steam boiler plants, biomass
boilers and gasification plants for energy generation, flue gas cleaning plants,
plants for the production of panelboards (MDF), thermal sludge utilization, and
torrefaction plants. The publicly listed company is headquartered in Graz,
Austria, has a staff of approximately 17,400 employees, and operates over 180
production sites as well as service and sales companies all around the world.

Annual and financial reports
Annual reports and financial reports of the ANDRITZ GROUP are available at
www.andritz.com as online and pdf versions. Printed copies can be requested at 
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.


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

end of announcement                               euro adhoc 
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company:     Andritz AG
             Stattegger Straße 18
             A-8045 Graz
phone:       +43 (0)316 6902-0
FAX:         +43 (0)316 6902-415
mail:         welcome@andritz.com
WWW:      www.andritz.com
sector:      Machine Manufacturing
ISIN:        AT0000730007
indexes:     WBI, ATX Prime, ATX, ATX five
stockmarkets: official market: Wien 
language:   English

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