euro adhoc: Andritz AG
quarterly or semiannual financial statement
Andritz:
Results for the first half of 2008
- Increase in order intake, sales, and net income
- Order backlog, at over 4.6 bn Euros, provides solid basis for the coming
quarters
Disclosure announcement transmitted by euro adhoc. The issuer is responsible for the content of this announcement.
6-month report
01.08.2008
Graz, August 1, 2008. In the first half of 2008, international technology Group Andritz showed a favorable business development, with order intake, sales, and net income increasing compared to the reference period of last year. Order backlog, at over 4.6 billion Euros as of June 30, 2008, reached a new record high. For the full year 2008, the Andritz Group expects to achieve another record year with increases in sales and earnings compared to 2007.
Increase in sales During the first half of 2008, sales of the Andritz Group amounted to 1,650.0 MEUR, an increase of 7.4% compared to last year´s reference period (H1 2007: 1,537.0 MEUR). In particular, the Hydro Power and the Rolling Mills & Strip Processing Lines business areas were able to increase their sales significantly compared to the first half of last year.
Newly acquired companies, which were not included in the consolidated financial statements of the first half of 2007, added 52.1 MEUR to Group sales in the first half of 2008. Organic growth of the Andritz Group, therefore, amounted to 4.0% during the first half of 2008.
Order intake up, order backlog at record level Order intake of the Group developed favorably during the first half of 2008. At 2,128.7 MEUR, it surpassed the high level of last year´s reference period (H1 2007: 2,037.5 MEUR) by 4.5%. In particular, the Hydro Power and the Rolling Mills & Strip Processing Lines business areas increased their order intakes compared to the reference period of last year.
Order backlog as of June 30, 2008, at 4,619.5 MEUR, reached a record level and increased by 19.4% compared to the reference date of last year (June 30, 2007: 3,867.9 MEUR). Thus, the Andritz Group has a solid base for the business development during the coming quarters.
Earnings increased In the first half of 2008, the Group´s earnings before interest and taxes (EBIT) amounted to 98.8 MEUR. This is an increase of 17.1% compared to the first half of 2007 (84.4 MEUR), thus showing a stronger growth than sales. The Group´s EBIT margin improved to 6.0% in the first half of 2008 (H1 2007: 5.5%). In particular, the Pulp & Paper, the Hydro Power as well as the Rolling Mills & Strip Processing Lines business areas showed a favorable development of earnings.
Net income excluding minority interests amounted to 69.8 MEUR, exceeding last year´s reference value by 13.3% (H1 2007: 61.6 MEUR).
Solid balance sheet structure Total assets as of June 30, 2008 increased to 2,956.0 MEUR (December 31, 2007: 2,507.5 MEUR), mainly due to the first-time inclusion of the assets and liabilities of the businesses acquired from GE Energy in May/June 2008 as well as to the successful issue of a 150 MEUR corporate bond in February 2008 (replacing the corporate bond 2002-2008, which was redeemed in June 2008). The equity ratio as of June 30, 2008 amounted to 17.6% (December 31, 2007: 19.2%).
As of June 30, 2008, liquid funds amounted to 777.0 MEUR; net liquidity (liquid funds minus financial liabilities) was 366.4 MEUR, thus increasing significantly compared to the end of 2007 (December 31, 2007: 246.5 MEUR).
Outlook for the full year 2008 Project activity in all of Andritz´s relevant markets is at a satisfactory level. Based on the high order backlog as of the end of June 2008, the Andritz Group expects a solid business development during the coming quarters. Wolfgang Leitner, President and CEO of Andritz AG: "In all of our business areas, we see a good market environment. Based on the results for the first six months of the year, Andritz expects Group sales for the full year 2008 to increase to a good 3.5 billion Euros and profitability - EBITA margin - to increase compared to the financial year 2007."
Key figures of the Andritz Group for the first half of 2008 at a glance
in MEUR (IFRS) H1 2008 H1 2007 +/- Q2 2008 Q2 2007 +/- Order intake 2,128.7 2,037.5 +4.5% 933.0 1,006.5 -7.3% Order backlog (as of end of period) 4,619.5 3,867.9 +19.4% 4,619.5 3,867.9 +19.4% Sales 1,650.0 1,537.0 +7.4% 899.1 806.1 +11.5% EBITDA 1) 124.0 107.9 +14.9% 68.6 58.4 +17.5% EBIDA margin (%) 7.5 7.0 - 7.6 7.2 - EBITA 2) 101.9 87.4 +16.6% 57.6 47.6 +21.0% EBITA margin (%) 6.2 5.7 - 6.4 5.9 - Earnings before interest and taxes (EBIT) 98.8 84.4 +17.1% 56.0 46.0 +21.7% EBIT margin (%) 6.0 5.5 - 6.2 5.7 - Earnings before taxes (EBT) 100.5 87.7 +14.6% 57.0 47.1 +21.0% Net income 72.0 63.0 +14.3% 40.8 33.9 +20.4% Net income after deduction of minority interests 69.8 61.6 +13.3% 39.6 33.1 +19.6% Cash flow from operating activities 126.2 34.6 +264.7% -7.6 -5.1 -49.0% Capital expenditure 3) 27.7 23.1 +19.9% 13.8 12.3 +12.2% Employees (as of end of period) 12,949 10,946 +18.3% 12,949 10,946 +18.3%
1) EBITDA: Earnings before interest, taxes, depreciation, and amortization. 2) EBITA: Earnings before interest, taxes, amortization of identifiable assets acquired in a business combination and recognized separately from goodwill at the amount of 3,111 TEUR for H1 2008 (2,916 TEUR for H1 2007 and 5,967 TEUR for 2007) and impairment of goodwill (2007: 2,771 TEUR). 3) Capital expenditure: Additions to property, plant, and equipment and intangible assets.
The interim financial report for the first half of 2008 is available on the Andritz web site (www.andritz.com) both as an online and a PDF version. Printed versions can be requested by telephone (+43 316/6902-2722), fax (+43 316/6902-465) or e-mail (petra.wolf@andritz.com).
The Andritz Group The Andritz Group is a global market leader in the supply of customized plants, systems, and services for the pulp and paper industry, the hydropower industry, the steel industry, and other specialized industries (solid/liquid separation, feed, and biofuel). Headquartered in Graz, Austria, the Group has about 12,900 employees worldwide. It manufactures and sells its products and services globally.
Disclaimer: Certain statements contained in this report 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
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