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Andritz AG

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

  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.
6-month report
09.08.2010
Graz, August 9, 2010.  International technology Group ANDRITZ showed 
a favorable business development in the first half of 2010. 
Especially in the second quarter, sales, earnings, and profitability 
rose substantially compared to the previous year´s reference figures;
order intake in the second quarter of 2010 reached the highest 
quarterly figure in the company´s history.
Rise in sales in the second quarter of 2010 In the second quarter of 
2010, sales of the ANDRITZ GROUP rose by 5.9%, to 829.9 MEUR (Q2 
2009: 784.0 MEUR). With the exception of METALS, all business areas 
recorded significant increases in sales. Thus, sales of the Group in 
the first half of 2010, at 1,562.2 MEUR, were only slightly below the
reference figure for the previous year (H1 2009: 1,574.1 MEUR).
Record levels in order intake and order backlog Order intake of the 
ANDRITZ GROUP in the second quarter of 2010 amounted to 1,395.3 MEUR,
which was the highest quarterly figure ever achieved in the company´s
history. Compared to the reference figure for the previous year (Q2 
2009: 731.3 MEUR), order intake almost doubled. Order intake rose in 
all business areas compared to the previous year´s reference figures,
with the HYDRO and PULP & PAPER business areas achieving substantial 
increases. In total, the order intake of the Group amounted to 
2,303.7 MEUR in the first half of 2010 and was thus 34.5% higher than
the previous year´s reference figure (H1 2009: 1,712.7 MEUR). With 
the exception of METALS, all business areas saw a rise in order 
intake.
The order backlog as of June 30, 2010 amounted to 5,384.9 MEUR and 
was thus higher than the figure for the previous year´s reference 
period (+22% vs. June 30, 2009: 4,426.9 MEUR), as well as exceeding 
the value for the end of 2009 (+21% vs. December 31, 2009: 4,434.5 
MEUR).
Favorable development in earnings and profitability EBITA of the 
ANDRITZ GROUP in the second quarter of 2010 amounted to 54.2 MEUR and
was thus many times higher than the very low reference figure for Q2 
2009 (12.8 MEUR), which was impacted by restructuring expenses of 
approximately 24 MEUR. Excluding these restructuring expenses, 
earnings increased by 46.1%. Profitability (EBITA margin) rose 
substantially in the second quarter of 2010, to 6.5% (Q2 2009: 1.6%; 
4.7% excl. restructuring expenses), with all business areas showing 
significant increases in earnings in absolute terms, as well as in 
profitability. The EBITA of the Group in the first half of 2010 
increased to 97.9 MEUR (H1 2009: 56.5 MEUR), while the EBITA margin 
was up to 6.3% (H1 2009: 3.6%; 5.1% excl. restructuring expenses).
The net income (excluding non-controlling interests) amounted to 67.3
MEUR in the first half of 2010 and was thus more than double the 
figure for the previous year´s reference period (H1 2009: 32.5 MEUR).
Unchanged solid net worth position and capital structure As of June 
30, 2010, the ANDRITZ GROUP showed an unchanged solid net worth 
position and capital structure: total assets rose to 3,750.1 MEUR 
(December 31, 2009: 3,309.3 MEUR), and the equity ratio amounted to 
19.6% (December 31, 2009: 20.0%).
Liquid funds (cash and cash equivalents plus marketable securities) 
as of June 30, 2010 amounted to 1,340.0 MEUR (December 31, 2009: 
1,082.1 MEUR). Net liquidity (liquid funds plus fair value of 
interest rate swaps minus financial liabilities) increased to 932.8 
MEUR (December 31, 2009: 677.9 MEUR); this rise is mainly due to 
receipt of advance payments for some large orders.
Outlook for the full year 2010 ANDRITZ expects solid project activity
in all business areas for the coming months and confirms the sales 
and earnings expectations for the 2010 business year published with 
the figures for the full year 2009: Sales of the ANDRITZ GROUP should
at least reach the level of 2009 or increase slightly, while net 
income should be impacted positively by the cost reductions resulting
from restructuring measures initiated in 2009. As Wolfgang Leitner, 
President and CEO of ANDRITZ AG, explains, ´The results for the first
half of 2010 are satisfactory - above all due to the positive 
development by all business areas in the second quarter - and have 
shown that we took the right measures at the right time, with a good 
sense of proportion, in the light of the general economic crisis. We 
are on the right course and optimistic that we can achieve our 
targets for the 2010 business year.´
- End -
Key figures of the ANDRITZ GROUP at a glance
(acc. to IFRS; in MEUR)    H1 2010   H1 2009     +/-  Q2 2010  Q1 2009      +/-
Sales                      1,562.2   1,574.1   -0.8%    829.9    784.0    +5.9%
 HYDRO                       706.7     650.4   +8.7%    357.7    333.8    +7.2%
 PULP & PAPER                479.3     465.8   +2.9%    262.3    232.1   +13.0%
 METALS                      162.1     243.6  -33.5%     84.1    108.6   -22.6%
 ENVIRONMENT & PROCESS       144.5     151.8   -4.8%     88.8     81.0    +9.6%
 FEED & BIOFUEL               69.6      62.5  +11.4%     37.0     28.5   +29.8%
Order intake               2,303.7   1,712.7  +34.5%  1,395.3    731.3   +90.8%
 HYDRO                     1,150.0   1,054.5   +9.1%    758.6    480.3   +57.9%
 PULP & PAPER                748.7     302.8 +147.3%    408.6    138.1  +195.9%
 METALS                      141.6     145.3   -2.5%     98.9     21.7  +355.8%
 ENVIRONMENT & PROCESS       181.9     153.0  +18.9%     92.7     68.7   +34.9%
 FEED & BIOFUEL               81.5      57.1  +42.7%     36.5     22.5   +62.2%
Order backlog
(as of end of period)      5,384.9   4,426.9  +21.6%  5,384.9  4,426.9   +21.6%
EBITDA                       123.2      89.2  +38.1%     67.6     33.0  +104.8%
EBITDA margin                 7.9%      5.7%     -       8.1%     4.2%      -
EBITA                         97.9      56.5* +73.3%     54.2     12.8* +323.4%
EBITA margin                  6.3%      3.6%*    -       6.5%     1.6%*     -
Earnings Before Interest
and Taxes (EBIT)              92.8      52.0  +78.5%     51.4     10.4  +394.2%
Financial result               3,6      -2.9 +224.1%      1.7      1.3   +30.8%
Earnings Before Taxes (EBT)   96.4      49.1  +96.3%     53.1     11.7  +353.8%
Net income (excl. non-
controlling interests)        67.3      32.5 +107.1%     38.4      6.8  +464.7%
Cash flow from
operating activities         338.9     117.6 +188.2%    100.5     62.6   +60.5%
Investments in
fixed tangible and
intangible assets             22.2      40.2  -44.8%      8.3     17.3   -52.0%
Employees
(as of end of period)       13,457    13,397   +0.4%   13,457   13,397    +0.4%
*including restructuring expenses
The interim financial report for the first half of 2010, as well as 
the annual and financial reports of the ANDRITZ GROUP, are available 
on the ANDRITZ website at www.andritz.com as an online and a pdf 
version. 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 13,500 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

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

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