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EANS-Adhoc: ANDRITZ: results for the first quarter of 2010

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  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.
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3-month report

07.05.2010

Graz, May 7, 2010. International technology Group ANDRITZ showed a satisfactory business development in the first quarter of 2010. Sales amounted to 732 MEUR (-7% vs. Q1 2009). Order intake amounted to 908 MEUR and thus declined by 7% compared to the very high reference value for the previous year, but was still significantly higher than the figures for the preceding quarters. Order backlog as of March 31, 2010 amounted to 4.7 billion EUR, which is an increase of 6% compared to the reference date for last year. In spite of the decline in sales, EBITA, at 43.7 MEUR, was at the same level as during last year´s reference period (Q1 2009: 43.7 MEUR). Thus, profitability (EBITA margin) increased to 6.0% (2009: 5.5%). Net income (excluding non-controlling interests) amounted to 29 MEUR (Q1 2009: 26 MEUR).

Sales declining, HYDRO business area remains strong Sales of the ANDRITZ GROUP amounted to 732.3 MEUR during the first quarter of 2010, thus 7.3% below the reference figure for the previous year (Q1 2009: 790.1 EUR). While the HYDRO business area achieved a significant increase in sales compared to last year´s reference quarter, sales in the other business areas declined - especially in METALS and ENVIRONMENT & PROCESS.

Solid development of order intake and order backlog Order intake of the ANDRITZ GROUP saw a solid development in the first quarter of 2010, amounting to 908.4 MEUR and thus declining by 7.4% compared to the very high reference value for the previous year, but still significantly higher than the figures for the preceding quarters. Order intake of the HYDRO business area was significantly below the very high reference value for last year, which had included some major orders; also the METALS business area saw a significant decline in order intake. In contrast, order intake of the PULP & PAPER business area developed very favorably, more than doubling the figure for last year´s reference period.

Order backlog of the ANDRITZ GROUP as of March 31, 2010 amounted to 4,724.3 MEUR, an increase of 5.8% compared to the reference date for last year (March 31, 2009: 4,464.0 MEUR).

Satisfactory earnings, increased profitability Despite the decline in sales, EBITA of the ANDRITZ GROUP, at 43.7 MEUR in the first quarter of 2010, remained stable compared to the reference value of last year (Q1 2009: 43.7 MEUR). While earnings in the HYDRO and the PULP & PAPER business areas rose significantly, the METALS and the ENVIRONMENT & PROCESS business areas in particular showed a decline in earnings.

EBITA margin of the Group increased to 6.0% and was thus higher than during the reference period for the last year (Q1 2009: 5.5%). In particular, the HYDRO and the PULP & PAPER business areas´ profitability developed very favorably.

Net income (excluding non-controlling interests) amounted to 28.9 MEUR, which is an increase of 12.5% compared to the reference figure of the previous year (Q1 2009: 25.7 MEUR).

Solid balance sheet structure, substantially higher liquidity Total assets increased to 3,538.0 MEUR as of March 31, 2010 (December 31, 2009: 3,309.3 MEUR); the equity ratio amounted to 19.0% (December 31, 2009: 20.0%).

Liquid funds (cash and cash equivalents plus marketable securities) amounted to 1,296.5 MEUR as of March 31, 2010 (December 31, 2009: 1,082.1 MEUR). Net liquidity (liquid funds plus fair value of interest rate swaps minus financial liabilities) increased to 897.7 MEUR, thus also substantially higher than at the end of last year (December 31, 2009: 677.9 MEUR).

Outlook for 2010 confirmed The ANDRITZ GROUP confirms its financial guidance made on the occasion of the release of the 2009 financial results in March 2010 concerning the expected development of the markets it serves and the business development for the 2010 financial year. President and CEO Wolfgang Leitner comments: "While we expect a favorable market environment for the HYDRO business area in the next few months, and the ENVIRONMENT & PROCESS and the FEED & BIOFUEL business areas should also develop satisfactorily, we assume that the very moderate investment activity in the METALS business area will continue in the coming quarters. In the PULP & PAPER business area, we do not expect any sustained improvement for the time being despite the good order intake in the first quarter."

Based on these expectations and the order backlog of more than 4.7 bn. EUR at the end of March 2010, the ANDRITZ GROUP expects sales in 2010 to remain unchanged or slightly up compared to 2009. The cost reductions resulting from the restructuring measures implemented in 2009 should positively impact the net income.

- End -

Key figures of the ANDRITZ GROUP at a glance

(Acc. to IFRS)             Unit      Q1 2010     Q1 2009       +/-       2009

Sales                      MEUR        732.3       790.1     -7.3%    3,197.5
 HYDRO                     MEUR        349.0       316.6    +10.2%    1,378.0
 PULP & PAPER              MEUR        217.0       233.7     -7.1%      903.3
 METALS                    MEUR         78.0       135.0    -42.2%      473.4
 ENVIRONMENT & PROCESS     MEUR         55.7        70.8    -21.3%      322.6
 FEED & BIOFUEL            MEUR         32.6        34.0     -4.1%      120.2

Order intake               MEUR        908.4       981.4     -7.4%    3,349.3
 HYDRO                     MEUR        391.4       574.2    -31.8%    1,693.9
 PULP & PAPER              MEUR        340.1       164.7   +106.5%      923.0
 METALS                    MEUR         42.7       123.6    -65.5%      296.2
 ENVIRONMENT & PROCESS     MEUR         89.2        84.3     +5.8%      305.4
 FEED & BIOFUEL            MEUR         45.0        34.6    +30.1%      103.8

Order backlog
(as of end of period)      MEUR      4,724.3     4,464.0     +5.8%    4,434.5

EBITDA                     MEUR         55.6        56.2     -1.1%      218.2
EBITDA margin              %             7.6         7.1       -          6.8

EBITA                      MEUR         43.7        43.7      0.0%      164.1
EBITA margin               %             6.0         5.5       -          5.1

Earnings Before Interest
and Taxes (EBIT)           MEUR         41.4        41.6     -0.5%      147.1

Financial result           MEUR          1.9        -4.2   +145.2%        2.6

Earnings Before
Taxes (EBT)                MEUR         43.3        37.4    +15.8%      149.6

Net income (excl. non-
controlling interests)     MEUR         28.9        25.7    +12.5%       96.8

Cash flow from
operating activities       MEUR        238.4        55.0   +333.5%      345.7

Investments in fixed
tangible and intangible
assets                     MEUR         13.9        22.9    -39.3%       70.5

Employees
(as of end of period)      -          13,370      13,600     -1.7%     13,049

The interim financial report for the first quarter of 2010 as well as the annual and financial reports of the ANDRITZ GROUP are available at www.andritz.com in online and pdf versions. Printed copies can be requested by telephone (+43 316 6902-2722), fax (+43 316 6902-465), or e-mail (investors@andritz.com).

The ANDRITZ GROUP The ANDRITZ GROUP is a globally leading supplier of plants and services for 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 13,400 employees worldwide. ANDRITZ operates over 120 production sites, service, and sales companies all around the world.

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 von: Andritz AG, übermittelt durch news aktuell

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