02.03.2006 – 08:01

Andritz AG

euro adhoc: Andritz AG
Annual Reports
Andritz: Record results in 2005 - Order Intake and Order Backlog reach record levels - Significant increase in Sales and Net Income - Proposal to increase dividend to 2.00 Euros per share

  Disclosure announcement transmitted by euro adhoc.
  The issuer is responsible for the content of this announcement.

02.03.2006

Graz, 2 March 2006. In 2005 international Andritz Group achieved its
best financial results in history.  Sales increased to 1,744.3 MEUR
(+17.8% vs. 2004).  Order Intake, at almost 2 bn. Euros, reached a
new record level (+7.5% vs. 2004), and Order Backlog as of 31
December 2005 amounted to approximately 1.7 bn (+17.8% vs. 2004),
thus providing a solid workload for 2006.  Net Income was
significantly increased to 80.2 MEUR (+48.5% vs. 2004).  At the
upcoming Annual General Meeting, the Managing Board will propose an
increase in the dividend to 2.00 EUR per share (2004: 1.40 EUR per
share).

Strong organic Sales growth Sales of the Andritz Group developed very
favorably in 2005.  As a result of the high Order Backlog as of the
end of last year, and the successful development of companies
acquired in 2004, Group Sales increased by 17.8% to 1,744.3 MEUR
(2004: 1,481.3 MEUR).  In particular, the Rolling Mills and Strip
Processing Lines and Environment and Process Business Areas increased
their Sales significantly compared to 2004.  First-time consolidated
companies contributed approximately 19.6 MEUR to the Group’s total
Sales in 2005.  Organic Sales growth of the Group therefore was
16.4%.

Significant increase in Earnings Due to higher Sales, EBITDA
(Earnings before Interest, Taxes, Depreciation, and Amortization of
goodwill) increased by 13.4%, to 130.9 MEUR in 2005 (2004: 115.4
MEUR).

Due to the ceasing of amortization of goodwill in compliance with the
stipulations by IFRS 3, EBIT surged over proportionally to 106.7 MEUR
(+40.2 %; 2004: 76.1 MEUR).

Order Intake and Order Backlog at record levels In 2005 Order Intake
of the Andritz Group reached a new record level.  At 1,974.6 MEUR, it
increased by 7.5% compared to the high level of 2004 (1,837.0 MEUR).
Once again, the Rolling Mills and Strip Processing Lines and
Environment and Process Business Areas were the main contributors to
this increase.  Order Intake of first-time consolidated companies
amounted to approximately 20 MEUR.

As a consequence of excellent Order Intake, the Group’s Order Backlog
reached a record level of 1,695.6 MEUR at the end of 2005
(31.12.2004: 1,439.2 MEUR).  This provides a solid workload for the
coming Quarters.

Balance sheet Due to the receipt of premature advance payments by
customers, Net liquidity (cash and cash equivalents minus
interest-bearing financial liabilities), at 383.9 MEUR as of
31.12.2005, increased significantly compared to the reference value
of last year (31.12.2004: 219.6 MEUR).  The equity ratio as of
31.12.2005 was 23.6% (31.12.2004: 24.0%).

Dividend At the upcoming Annual General Meeting, the Managing Board
will propose an increase in the dividend to 2.00 EUR per share (2004:
1.40 EUR per share).

Outlook Leading economic researchers expect the global economy to
continue to grow in 2006.  As a result, Andritz also expects a
satisfactory development of its relevant markets with good project
activity in all Business Areas.  "Based on these favorable economic
conditions and the high Order Backlog as of the end of 2005, we
expect Sales and Net Income to increase compared to 2005", says
Wolfgang Leitner, President and CEO of Andritz.

Key figures 2005 at a glance

(in MEUR, IFRS)                           2005           2004          Change
Order Intake                            1,974.6        1,837.0          +7.5%
Order Backlog as of 31.12.              1,695.6        1,439.2         +17.8%
Sales                                   1,744.3        1.481.3         +17.8%
EBITDA                                    130.9          115.4         +13.4%
EBITDA margin                              7.5%           7.8%            -
EBITA                                     107.0           92.8         +15.3%
EBITA margin                               6.1%           6.3%              -
Operating profit (EBIT)                   106.7           76.1         +40.2%
Earnings before Taxes (EBT)               110.0           76.6         +43.6%
Net Income                                 80.2           54.0         +48.5%
Cash flow from operating activities       237.3          208.0         +14.1%
Capex                                      26.7           29.4          -9.2%

Disclaimer Certain statements contained in this press release
constitute "forward-looking statements".  These statements, which
contain the words "believe", "intend", "expect" and words of similar
meaning, reflect the Management’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 02.03.2006 07:30:00

Further inquiry note:

Dr. Michael Buchbauer
Head of 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: Wiener Börse AG / official dealing