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EANS-News: ANDRITZ GROUP: Good business development in the first quarter of 2011

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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, May 6, 2011. International technology Group ANDRITZ showed good business development in the first quarter of 2011 and increased all relevant key figures compared to last year´s reference period: -Sales of the ANDRITZ GROUP amounted to 923.7 MEUR, thus 26.1% higher than the reference figure for the previous year (Q1 2010: 732.3 MEUR). While sales of the PULP & PAPER and ENVIRONMENT & PROCESS business areas increased substantially compared to the first quarter of 2010, sales in the METALS business area declined slightly.

-Order intake developed very favorably. At 1,666.0 MEUR, it almost doubled compared to last year´s reference period (+83.4% vs. Q1 2010: 908.4 MEUR). Particularly the HYDRO, PULP & PAPER, and METALS business areas were able to increase order intake significantly.

-At 6,388.0 MEUR, order backlog as of March 31, 2011 reached a new record high and rose by 20.7% compared to the reference value as of the end of last year (December 31, 2010: 5,290.9 MEUR).

-EBITA in the first quarter of 2011, at 56.1 MEUR, increased by 28.4% compared to last year´s reference period (Q1 2010: 43.7 MEUR), rising slightly more than sales. Thus, profitability (EBITA margin) increased slightly to 6.1% (Q1 2010: 6.0%).

-Net income (excluding non-controlling interests) amounted to 37.0 MEUR (Q1 2010: 28.9 MEUR).

-The balance sheet structure as of March 31, 2011 remained solid. The equity ratio amounted to 17.1% (December 31, 2010: 19.7%). Liquid funds (cash and cash equivalents plus marketable securities) rose to 1,726.2 MEUR (December 31, 2010: 1,594.7 MEUR). The net liquidity (liquid funds plus fair value of interest rate swaps minus financial liabilities) increased to 1,312.0 MEUR (December 31, 2010: 1,177.0 MEUR).

Outlook for the 2011 business year President and CEO Wolfgang Leitner comments on the expected development of the markets served by ANDRITZ: `We expect good market environment and solid project activity to continue in all of the ANDRITZ GROUP business areas except METALS, where we anticipate project and investment activity to remain subdued, at least until the end of the year.´

On the basis of these expectations and the order backlog of approximately 6.4 billion EUR as of March 31, 2011, the ANDRITZ GROUP expects a significant increase in sales in 2011 compared to 2010. Net income is also expected to rise compared to the previous year.

- End -

Key figures of the ANDRITZ GROUP at a glance

(Acc. to IFRS)              Unit       Q1 2011     Q1 2010       +/-        2010
Sales                       MEUR         923.7       732.3    +26.1%     3,533.8
  HYDRO                     MEUR         364.5       349.0     +4.4%     1,579.2
  PULP & PAPER              MEUR         367.0       217.0    +69.1%     1,105.3
  METALS                    MEUR          71.1        78.0     -8.8%       340.2
  ENVIRONMENT & PROCESS     MEUR          87.6        55.7    +57.3%       375.4
  FEED & BIOFUEL            MEUR          33.5        32.6     +2.8%       153.7

Order intake                MEUR       1,666.0       908.4    +83.4%     4,131.9
  HYDRO                     MEUR         583.9       391.4    +49.2%     1,870.1
  PULP & PAPER              MEUR         811.1       340.1   +138.5%     1,388.4
  METALS                    MEUR         104.7        42.7   +145.2%       302.7
  ENVIRONMENT & PROCESS     MEUR         130.9        89.2    +46.7%       424.3
  FEED & BIOFUEL            MEUR          35.4        45.0    -21.3%       146.4

Order backlog
(as of end of period)       MEUR       6,388.0     4,724.3    +35.2%     5,290.9

EBITDA                      MEUR          68.7        55.6    +23.6%       307.3
EBITDA margin               %              7.4         7.6       -           8.6

EBITA                       MEUR          56.1        43.7    +28.4%       257.6
EBITA margin                %              6.1         6.0       -           7.2

Earnings Before Interest
and Taxes (EBIT)            MEUR          52.0        41.4    +25.6%       245.5

Financial result            MEUR           3.0         1.9    +57.9%         2.4

Earnings Before Taxes
(EBT)                       MEUR          55.0        43.3    +27.0%       247.9

Net income (excluding
non-controlling interests)  MEUR          37.0        28.9    +28.0%       179.6

Cash flow from
operating activities        MEUR         151.0       238.4    -36.6%       704.5

Investments in tangible
and intangible assets       MEUR          10.3        13.9    -25.9%        68.8

Employees
(as of end of period)       MEUR        15,856      13,370    +18.6%      14,655

The interim financial report for the first quarter of 2011 is available online and as download at www.andritz.com. Printed copies can be requested by telephone (+43 316 6902 2722), fax (+43 316 6902 465), or by 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 15,900 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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Contact:

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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