EANS-News: ANDRITZ GROUP: Results for Q2 2020 and H1 2020
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Mid Year Results/Mid Year Financial Report/Quarterly Report
Graz - July 31, 2020. International technology Group ANDRITZ showed largely
solid business development in the second quarter of 2020 in view of the very
challenging overall economic environment. While order intake fell sharply
compared to the previous year's reference period - primarily due to the weak
global economy, but also to structural weaknesses in the Hydro and Metals
Forming markets (Schuler) - sales, earnings (EBITA) and profitability increased
slightly.
Wolfgang Leitner, President and CEO of ANDRITZ AG: "All of our business areas
have been and still are being affected by the weakness of the global economy -
albeit to different extents. We introduced cost-saving measures at the right
time and were able to largely cushion the negative effects of the crisis as a
result. However, as investment activity will continue to be adversely affected
in the markets we serve and the structural weakness in the Hydro and Metals
Forming markets will probably persist, we will be taking further steps to adjust
our cost structures in the coming months in order to safeguard our ability to
compete in the long term."
The key financial figures developed as follows:
* In the second quarter of 2020, order intake at 1,183.8 MEUR was significantly
lower than in the previous year's reference period (-42.2% versus Q2 2019
2,047.1 MEUR), which included several larger orders in the Pulp & Paper and
Metals business areas. Considering the difficult general environment, Pulp &
Paper saw solid development, but still showed a decline compared to the very
high level of the previous year's reference period. Order intake fell sharply
in the Metals business area in particular, which was affected by the very weak
investment activity in both the automotive and steel industries. The Hydro
business area also suffered from the unchanged difficult conditions on the
global hydropower market. Order intake in the Separation business area saw
positive development. Order intake of the ANDRITZ-GROUP in the first half of
2020 amounted to 3,036.7 MEUR (-18.0% vs. H1 2019: 3,705.2 MEUR).
* The order backlog as of June 30, 2020 amounted to 7,396.6 MEUR and fell by
4.9% compared to the end of 2019 (7,777.6 MEUR).
* Sales increased in the second quarter of 2020 by 5.7% compared to the previous
year's reference period (Q2 2019: 1,573.2 MEUR) to reach 1,662.8 MEUR. This is
attributable to the Pulp & Paper business area, which saw a sharp increase in
sales due to processing of some larger orders and more than made up for the
decline in sales of the other business areas. Sales of the ANDRITZ GROUP in
the first half of 2020 amounted to 3,173.0 MEUR and increased by 3.6% compared
to the previous year's reference period (first half of 2019: 3,062.4 MEUR).
* The EBITA amounted to 104.2 MEUR in the second quarter of 2020 and increased
slightly more than sales. While the Pulp & Paper and Separation business areas
showed very favorable earnings development, earnings in the Metals business
area in particular continued to be very low due to processing of low-margin
orders and the under-absorption of capacities in the Metals Forming (Schuler)
segment. The Hydro business area also saw a decline in earnings and
profitability compared to the previous year's reference period. The EBITA of
the ANDRITZ GROUP amounted to 174.3 MEUR in the first half of 2020 and was
slightly below the level of the previous year's reference period (-1.8% versus
H1 2019 177.5 MEUR).
* The financial result in the second quarter of 2020 amounted to -8.9 MEUR,
improving significantly compared to the previous year's reference period (Q2
2019: -14.4 MEUR).
* As a result, net income (without non-controlling interests) increased in the
second quarter of 2020 to 53.4 MEUR (Q2 2019: 43.9 MEUR). In the first half of
2020, the net income (without non-controlling interests) amounted to 84.9 MEUR
(H1 2019: 77.5 MEUR).
OUTLOOK FOR 2020: Slight decline in sales and stable profitability
The markets served by ANDRITZ have been and continue to be affected by the
negative effects of the COVID-19 crisis. Many investment projects and order
awards have been slowed down by the customers or postponed until further notice.
In the coming months, ANDRITZ will continue the measures to reduce costs in the
short term that were implemented immediately after the COVID-19 crisis began and
also make adjustments to optimize cost structures in the medium term. This
concerns Hydro and Metals Forming in particular, both of which are affected by
continuing weakness of their markets served, which has been intensified by the
global economic slowdown. As a result, capacity adjustments are planned in both
areas, for which total provisions in the mid-/upper two-digit million euros
range are planned in the third quarter of 2020. These measures are aimed at
adapting the capacities and cost structures to a slightly lower business volume
in both business areas in the medium term.
Based on development of the order intake in the first half of 2020, the existing
order backlog of the Group as of the end of June and market expectations for the
current, second half of the year, ANDRITZ expects slightly lower sales from
today's perspective for the 2020 business year compared to 2019 (6,674 MEUR).
Profitability (EBITA margin based on the operating result (EBITA) as reported)
including the above mentioned provisions for capacity adjustment measures should
remain roughly at the same level as in the previous year (EBITA margin 2019
reported: approx. 5%) in spite of the decline in sales.
However, if the situation deteriorates further as the year progresses, further
financial provisions for additional capacity adjustments may be necessary in
individual business areas and could have a negative effect on the ANDRITZ
GROUP's earnings.
KEY FINANCIAL FIGURES AT A GLANCE
Unit H1 2020 H1 2019 +/- Q2 2020 Q2 2019 +/- 2019
Sales MEUR 3,173.0 3,062.4 +3.6% 1,662.8 1,573.2 +5.7% 6,673.9
- Pulp & Paper MEUR 1,595.6 1,310.3 +21.8% 882.3 707.6 +24.7% 2,869.5
- Metals MEUR 698.2 758.7 -8.0% 343.0 370.9 -7.5% 1,636.9
- Hydro MEUR 587.6 675.6 -13.0% 289.4 337.2 -14.2% 1,470.7
- Separation MEUR 291.6 317.8 -8.2% 148.1 157.6 -6.0% 696.8
Order intake MEUR 3,036.7 3,705.2 -18.0% 1,183.8 2,047.1 -42.2% 7,282.0
- Pulp & Paper MEUR 1,699.8 1,925.7 -11.7% 621.6 1,118.8 -44.4% 3,632.5
- Metals MEUR 488.1 809.8 -39.7% 126.6 461.7 -72.6% 1,582.2
- Hydro MEUR 492.4 601.8 -18.2% 246.9 287.9 -14.2% 1,350.2
- Separation MEUR 356.4 367.9 -3.1% 188.7 178.7 +5.6% 717.1
Order backlog (as of MEUR 7,396.6 7,724.2 -4.2% 7,396.6 7,724.2 -4.2% 7,777.6
end of period)
EBITDA MEUR 258.6 262.7 -1.6% 146.0 136.2 +7.2% 537.6
EBITDA margin % 8.2 8.6 - 8.8 8.7 - 8.1
EBITA MEUR 174.3 177.5 -1.8% 104.2 94.7 +10.0% 343.2
EBITA margin % 5.5 5.8 - 6.3 6.0 - 5.1
Earnings Before
Interest and Taxes MEUR 137.4 128.9 +6.6% 83.6 76.0 +10.0% 237.9
(EBIT)
Financial result MEUR -18.4 -20.8 +11.5% -8.9 -14.4 +38.2% -57.0
Earnings Before Taxes MEUR 119.0 108.1 +10.1% 74.7 61.6 +21.3% 180.9
(EBT)
Net income (without
non-controlling MEUR 84.9 77.5 +9.5% 53.4 43.9 +21.6% 127.8
interests)
Cash flow from MEUR 100.0 271.9 -63.2% 43.1 215.9 -80.0% 821.6
operating activities
Capital expenditure MEUR 59.9 62.0 -3.4% 30.0 36.6 -18.0% 157.1
Employees (as of end
of period; without - 27,828 29,616 -6.0% 27,828 29,616 -6.0% 29,513
apprentices)
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. EUR = euros.
- End -
ANDRITZ GROUP
International technology group ANDRITZ offers a broad portfolio of innovative
plants, equipment, systems and services for the pulp and paper industry, the
hydropower sector, the metals processing and forming industry, solid/liquid
separation in the municipal and industrial sectors, as well as animal feed and
biomass pelleting. The global product and service portfolio is rounded off with
plants for power generation, recycling, the production of nonwovens and
panelboard, as well as automation and digital solutions offered under the brand
name of Metris. The publicly listed group today has around 27,800 employees and
more than 280 locations in over 40 countries.
ANNUAL AND FINANCIAL REPORTS
Annual and Financial reports are available for download at the ANDRITZ web site
andritz.com, and printed editions can be requested free of charge 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:
Dr. Michael Buchbauer
Head of Group Finance
Tel.: +43 316 6902 2979
Fax: +43 316 6902 465
mailto:michael.buchbauer@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
ISIN: AT0000730007
indexes: ATX, WBI
stockmarkets: Wien
language: English
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