euro adhoc: Andritz AG / quarterly or semiannual financial statement / Andritz: Favorable business development in Q1 2008 - Increase in sales and earnings - Order intake, at almost 1.2 billion Eur

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quaterly report

07.05.2008

Graz, May 7, 2008. The Andritz Group showed a favorable business
development during the first quarter of 2008. Sales amounted to 750.9
MEUR, an increase of 2.7% compared to the reference quarter of last
year (Q1 2007: 730.9 MEUR). The EBITA amounted to 44.3 MEUR, an
increase of 11.3% compared to the first quarter of 2007 (39.8 MEUR).
As a result, the profitability (EBITA margin) increased to 5.9% (Q1
2007: 5.4%). Net income excluding minority interests amounted to 30.2
MEUR, exceeding last year´s reference quarter by 6.0% (Q1 2007: 28.5
MEUR). Order intake, at 1,195.7 MEUR, reached the highest value ever
achieved in a quarter (Q1 2007: 1,031.0 MEUR). Order backlog as of
March 31, 2008 increased to the record level of 4,321.4 MEUR (March
31, 2007: 3,664.5 MEUR). Thus, the Andritz Group has a solid
visibility with regard to sales for the coming months.

Sales In the first quarter of 2008, sales of the Andritz Group
amounted to 750.9 MEUR, an increase of 2.7% compared to the reference
quarter of last year (Q1 2007: 730.9 MEUR). Several projects,
especially in the Pulp & Paper, Rolling Mills & Strip Processing
Lines and the Environment & Process business areas, have been in
their initial processing stages, thus making only low sales
contributions. The Hydro Power business area continued the positive
development of the last quarters and achieved a significant increase
in sales of more than a third (217.6 MEUR in Q1 2008 vs. 162.0 MEUR
in Q1 2007).

Earnings EBITA amounted to 44.3 MEUR, an increase of 11.3% compared
to the first quarter of 2007 (39.8 MEUR). Profitability (EBITA
margin) in the first quarter of 2008 increased to 5.9% (Q1 2007:
5.4%), with the Pulp & Paper and the Hydro Power business areas
showing a favorable margin development.

The financial result declined compared to the reference period of
last year; net income excluding minority interests amounted to 30.2
MEUR, exceeding last year´s reference quarter by 6.0% (Q1 2007: 28.5
MEUR).

Significant increase in order intake and order backlog Order intake
of the Group during the first quarter of 2008 developed very
favorably. At 1,195.7 MEUR, it was 16.0% higher compared to the very
high level of last year´s reference period (Q1 2007: 1,031.0 MEUR).
In particular, the Pulp & Paper, Hydro Power, and the Rolling Mills &
Strip Processing Lines business areas were able to increase their
order intakes considerably compared to the reference period of last
year. Organic growth of the order intake in the first quarter of 2008
was 9.3%.

Order backlog as of March 31, 2008 amounted to 4,321.4 MEUR, an
increase of 12.4% compared to the end of 2007 (December 31, 2007:
3,843.3 MEUR). Thus, the Andritz Group has a solid visibility with
regard to sales for the coming months.

Solid balance sheet structure As of March 31, 2008, the Andritz
Group´s total assets increased to 2,746.8 MEUR (December 31, 2007:
2,507.5 MEUR). This was mainly due to the issue of a public 150 MEUR
corporate bond (successfully placed in February 2008), which will
supersede the Andritz 100 MEUR corporate bond 2002-2008 that will
mature in June 2008. As a result, the equity ratio declined to 16.3%
(December 31, 2007: 19.2%). Net liquidity (cash and cash equivalents,
and marketable securities, minus financial liabilities) amounted to
303.1 MEUR as of March 31, 2008, thus higher compared to the level as
of the end of last year (December 31, 2007: 246.5 MEUR).

Outlook Project activity in all relevant markets for the Andritz
Group (pulp, hydropower, steel, environmental and feed technologies)
remains at a high level; in the pulping area, several large projects
are expected to be decided during the second half of 2008. In all
business areas, business has developed favorably, and - based on the
current economic environment - is expected to continue favorably
during the coming quarters.

Wolfgang Leitner, President and CEO of Andritz, is confident: "Based
on the results for the first quarter of 2008, the continued good
project activities in all of our business areas and the high order
backlog, we expect Group sales for the full year of 2008 to reach
approximately 3.5 billion Euros and profitability (EBITA margin) to
increase".

Results of the first quarter of 2008 at a glance

Andritz Group in MEUR (IFRS) Q1 2008 Q1 2007 +/- 2007
Order intake 1,195.7 1,031.0 +16.0% 3,749.5
Order backlog (as of end of period) 4,321.4 3,664.5 +17.9% 3,843.3
Sales 750.9 730.9 +2.7% 3,282.5
EBITDA1) 55.4 49.5 +11.9% 242.3
EBITDA margin 7.4% 6.8% - 7.4%
EBITA2) 44.3 39.8 +11.3% 201.3
EBITA margin 5.9% 5.4% - 6.1%
Earnings before interest
and taxes (EBIT) 42.8 38.4 +11.5% 192.6
EBIT margin 5.7% 5.3% - 5.9%
Earnings before taxes (EBT) 43.5 40.5 +7.4% 198.0
Net income 31.2 29.1 +7.2% 136.1
Net income after deduction
of minority interests 30.2 28.5 +6.0% 132.7
Cash flow from operating activities 133.8 39.7 +237.0% 33.1
Capital expenditure3) 13.9 10.8 +28.7% 57.0
Employees (as of end of period) 12,284 10,422 +17.9% 12,016

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 1,557 TEUR for
Q1 2008 (1,445 TEUR for Q1 2007 and 5,967 TEUR for 2007) and
impairment of goodwill (2007: 2,771 TEUR) 3)Additions to property,
plant, and equipment and intangible assets

- End -

The interim financial report for the first quarter 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 12,300
employees worldwide. It manufactures and sells its products and
services globally.

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 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
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ots Originaltext: Andritz AG
Im Internet recherchierbar: http://www.presseportal.de

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