EANS-Adhoc: ANDRITZ GROUP: significant drop in earnings in the first quarter of 2013
--------------------------------------------------------------------------------
ad-hoc disclosure transmitted by euro adhoc with the aim of a Europe-wide
distribution. The issuer is solely responsible for the content of this
announcement.
--------------------------------------------------------------------------------
Financial Figures/Balance Sheet/quarterly report
30.04.2013
Note: The Schuler Group was included in the ANDRITZ GROUP's consolidated
financial statement as of March 1, 2103.
Graz, April 30, 2013. International technology Group ANDRITZ announces ad hoc
that the financial figures for the first quarter of 2013 are significantly below
the financial analysts' consensus expectations.
While sales, at 1,163.8 MEUR, remained practically unchanged compared to the
previous year's reference figure (-1.8% vs. Q1 2012: 1.185,7 MEUR), the EBITA of
the ANDRITZ GROUP amounted to 14.2 MEUR, which is a significant decline of 80.4%
compared to the first quarter of 2012 (72.5 MEUR). While the HYDRO and METALS
business areas (including the first-time consolidation of Schuler) noted
satisfactory earnings, PULP & PAPER shows a loss in the amount of -23.7 MEUR.
The reasons for the earnings drop in PULP & PAPER are substantial cost overruns
related to the supply of production technologies and equipment for a pulp mill
in South America. Thus, a provision in the mid-double-digit million euros range
was made. ANDRITZ believes, however, that a substantial amount of additional
costs is caused by factors outside the company's responsibility and will uphold
this claim vigorously within all available legal options.
The SEPARATION business area also noted a considerable deterioration of
earnings, mainly due to additional costs related to technical problems in the
course of a market launch of a new product series in China.
The net income of the Group amounted to 4.1 MEUR and was significantly below the
level for the previous year's reference period (-91.9% vs. Q1 2012: 50.5 MEUR).
The order intake, at 1,288.3 MEUR (thereof 96.0 MEUR from Schuler), was 5.4%
lower than in the first quarter of 2012 (1,361.2 MEUR). The order backlog as of
March 31, 2013 increased compared to the end of last year by 18.6% to 7,844.3
MEUR (December 31, 2012: 6,614.8 MEUR), with Schuler contributing 1,125.9 MEUR.
Due to the first-time consolidation of Schuler, the total assets of the Group
increased significantly to 5,893.8 MEUR as of March 31, 2013 (December 31, 2012:
5,161.0 MEUR). Thus, the equity ratio declined to 15.8% (December 31, 2012:
20.0%). The liquid funds amounted to 1,750.4 MEUR (December 31, 2012: 2,047.8
MEUR) and the net liquidity to 884.9 MEUR (December 31, 2012: 1,285.7).
On the basis of the development during the first quarter of 2013, and in
consideration of the current order backlog and the consolidation of the Schuler
Group as of March 1, 2013, the ANDRITZ GROUP expects an increase in sales in the
2013 business year compared to the previous year. However, due to the earnings
decline in PULP & PAPER as well as scheduled amortization of intangible assets
related to the acquisition of Schuler, the net income will be lower than the
previous year's reference figure.
Wolfgang Leitner, President and CEO of ANDRITZ AG: "The development of the first
quarter is very unsatisfactory. We believe that the provisions now made will be
sufficient, but cannot guarantee that there will be no need for further
financial provisions in the coming quarters. We will adopt an even more
selective approach in such large-scale projects and give even greater
consideration to the earnings/risk profile in future."
- End -
Key figures of the ANDRITZ GROUP at a glance*
Unit Q1 2013 Q1 2012 +/- 2012
Sales MEUR 1,163.8 1,185.7 -1.8% 5,176.9
HYDRO MEUR 381.2 403.4 -5.5% 1,836.8
PULP & PAPER MEUR 452.4 563.5 -19.7% 2,282.2
METALS MEUR 202.0 89.4 +126.0% 404.7
SEPARATION** MEUR 128.2 129.4 -0.9% 653.2
Order intake MEUR 1,288.3 1,361.2 -5.4% 4,924.4
HYDRO MEUR 574.2 597.5 -3.9% 2,008.4
PULP & PAPER MEUR 423.5 529.4 -20.0% 1,962.4
METALS MEUR 144.5 64.3 +124.7% 324.2
SEPARATION** MEUR 146.1 170.0 -14.1% 629.4
Order backlog (as
of end of period) MEUR 7,844.3 7,034.7 +11.5% 6,614.8
EBITDA MEUR 32.0 86.5 -63.0% 418.6
EBITDA margin % 2.7 7.3 - 8.1
EBITA MEUR 14.2 72.5 -80.4% 357.8
EBITA margin % 1.2 6.1 - 6.9
Earnings Before Int.
and Taxes (EBIT) MEUR 3.1 66.7 -95.4% 334.5
Financial result MEUR -1.1 3.5 -131.4% -2.8
Earnings Before
Taxes (EBT) MEUR 2.0 70.1 -97.1% 331.6
Net income (without
non-controlling
interests) MEUR 4.1 50.5 -91.9% 243.6
Cash flow from
operating activities MEUR -79.7 37.2 -314.2% 346.5
Capital expenditure MEUR 21.4 19.5 +9.7% 109.1
Employees (as of end
of period; without
apprentices) - 23,660 17,063 +38.7% 17,865
* The Schuler Group was included in the ANDRITZ GROUP's consolidated financial
statements as of March 1, 2013 and is allocated to the METALS business area.
There are no pro forma figures available for the previous year's reference
periods.
** The FEED & BIOFUEL business area was allocated to the SEPARATION business
area as of January 1, 2013. The reference figures for the previous year were
adjusted accordingly.
All figures according to IFRS. Due to the utilization of automatic calculation
programs, differences can arise in the addition of rounded totals and
percentages. MEUR = million euros.
The ANDRITZ GROUP
The ANDRITZ GROUP is a globally leading supplier of plants, equipment, and
services for hydropower stations, the pulp and paper industry, the metalworking
and steel industries, and solid/liquid separation in the municipal and
industrial sectors. In addition, ANDRITZ offers technologies for certain other
sectors including automation, the production of animal feed and biomass pellets,
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
biomass torrefaction plants. The publicly listed, international technology Group
is headquartered in Graz, Austria, and has a staff of around 23,700 employees.
ANDRITZ operates over 220 production sites as well as service and sales
companies all around the world.
Annual and financial reports
The annual reports and financial reports of the ANDRITZ GROUP are available
online and as PDF for download at www.andritz.com. Printed copies can be
requested by e-mail to 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:
Oliver Pokorny
Group Treasury, Corporate Communications & Investor Relations
Tel.: +43 316 6902 1332
Fax: +43 316 6902 465
mailto:oliver.pokorny@andritz.com
end of announcement euro adhoc
--------------------------------------------------------------------------------
issuer: 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
Original content of: Andritz AG, transmitted by news aktuell