EANS-Adhoc: Andritz AG / Results for H1 2009

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quarterly report

07.08.2009

Graz, August 7, 2009. International technology Group ANDRITZ showed a
satisfactory business development in the first half of 2009 in view
of the continuing difficult economic environment. Sales amounted to
1,574.1 MEUR, a slight decline of 4.6% compared to the reference
period of last year. Order intake, at 1,712.7 MEUR, reached a good
level, although it was below the over-proportionally high level of
the previous year's reference period. EBITA for the first half of
2009 amounted to 56.5 MEUR and was impacted by restructuring expenses
of approximately 24 MEUR linked to the prevailing economic crisis.
The ANDRITZ GROUP continues to expect its sales to decline by about
15% in the full year 2009 and its net income also to decrease versus
the financial year 2008.

Only slight decline in sales The ANDRITZ GROUP´s sales during the
first half of 2009 amounted to 1,574.1 MEUR, a slight decline of 4.6%
compared to the reference period of last year (H1 2008: 1,650.0
MEUR). While the HYDRO business areas´ sales increased, sales of the
other business areas, particularly those heavily impacted by the
difficult overall economic situation, PULP & PAPER and METALS,
declined substantially.

Good order intake, although below the over-proportionally high
reference figure for the previous year Order intake of the ANDRITZ
GROUP amounted to 1,712.7 MEUR during the first half of 2009, thus
significantly below the over-proportionally high level of last year´s
reference period (H1 2008: 2,128.7 MEUR). While the PULP & PAPER and
METALS business areas recorded a substantial decline in order intake,
the HYDRO business area was able to continue its positive development
and achieved an over-proportionally high order intake compared to the
previous year.

Order backlog as of June 30, 2009, at 4,426.9 MEUR, declined slightly
compared to the value on the reference date of last year (June 30,
2008: 4,619.5 MEUR); however, it was significantly up compared the
figure as of end of December 2008 (4,277.4 MEUR).

Earnings below reference figure for the previous year, mainly due to
restructuring expenses of approximately 24 MEUR in the second quarter
of 2009 The earnings development of the ANDRITZ GROUP in the first
half of 2009 was mainly impacted by restructuring expenses of
approximately 24 MEUR, relating primarily to capacity adjustments and
structural optimization - particularly in the PULP & PAPER business
area - necessary due to the prevailing global economic situation.
Excluding these restructuring expenses, the EBITA for the first half
of 2009 was 80.8 MEUR (H1 2008: 104.5 MEUR), equivalent to an EBITA
margin of 5.1% (H1 2008: 6.3%). The EBITA of the ANDRITZ GROUP after
deduction of these restructuring expenses amounted to 56.5 MEUR in
the first half of 2009.

Net income excluding minority interests of the ANDRITZ GROUP amounted
to 32.5 MEUR in the first half of 2009 (-53.4% vs. H1 2008: 69.8
MEUR).

Continuing solid balance sheet structure and high net liquidity The
ANDRITZ GROUP continued to show a solid balance sheet structure as of
June 30, 2009: total assets increased slightly, to 3,099.7 MEUR
(December 31, 2008: 3,086.3 MEUR); the equity ratio as of June 30,
2009 amounted to 18.4% (December 31, 2008: 18.7%).

Liquid funds (Cash and cash equivalents plus Marketable securities)
amounted to 845.8 MEUR as of June 30, 2009 (December 31, 2008: 821.8
MEUR). Net liquidity (Liquid funds plus Fair value of interest rate
swaps minus Financial liabilities) increased to 443.7 MEUR and was
thus higher than at the end of last year (December 31, 2008: 408.9
MEUR).

Outlook for full year 2009 ANDRITZ confirms its sales and earnings
guidance for the financial year 2009 published with the financial
figures for 2008 and expects sales to decline by approximately 15%
and the net income to decrease in comparison to 2008. Wolfgang
Leitner, President & CEO of ANDRITZ AG, says: "The difficult overall
economic environment, particularly in our PULP & PAPER and METALS
business areas, is continuing. Due to the lack of visibility with
regard to the further development of the financial and economic
crisis, we have continued with the necessary restructuring measures
initiated in 2008 and thus, from today´s perspective, are well
prepared to cope with this difficult economic environment."

- End -

Key figurs for the ANDRITZ GROUP at a glance

(IFRS; in MEUR) H1 2009 H1 2008* +/- Q2 2009 Q2 2008* +/-
Sales 1,574.1 1,650.0 -4.6% 784.0 899.1 -12.8%
HYDRO 650.4 490.6 +32.6% 333.8 273.0 +22.3%
PULP & PAPER 465.8 670.1 -30.5% 232.1 351.0 -33.9%
METALS 243.6 267.8 -9.0% 108.6 154.6 -29.8%
ENVIRONMENT & PROCESS 151.8 150.5 +0.9% 81.0 84.2 -3.8%
FEED & BIOFUEL 62.5 71.0 -12.0% 28.5 36.3 -21.5%

Order intake 1,712.7 2,128.7 -19,5% 731.3 933.0 -21.6%
HYDRO 1,054.5 769.2 +37.1% 480.3 377.0 +27.4%
PULP & PAPER 302.8 711.5 -57.4% 138.1 294.2 -53.1%
METALS 145.3 362.6 -59.9% 21.7 118.1 -81.6%
ENVIRONMENT & PROCESS 153.0 198.9 -23.1% 68.7 99.9 -31.2%
FEED & BIOFUEL 57.1 86.5 -34.0% 22.5 43.8 -48.6%

Order backlog
(as of end of period) 4,426.9 4,619.5 -4.2% 4,426.9 4,619.5 -4.2%

EBITDA 89.2 126.6 -29.5% 33.0 70.0 -52.9%
EBITDA margin 5.7% 7.7% - 4.2% 7.8% -

EBITA (excl. restructuring) 80.8 104.5 -22.7% 37.1 59.0 -37.1%
EBITA margin
(excl. restructuring) 5.1% 6.3% - 4.7% 6.6% -

EBITA (incl. restructuring) 56.5 104.5 -45.9% 12.8 59.0 -78.3%
EBITA margin
(incl. restructuring) 3.6% 6.3% - 1.6% 6.6% -

Operating result (EBIT) 52.0 101.4 -48.7% 10.4 57.4 -81.9%

Financial result -2.9 -0.9 -222.2% 1.3 -0.4 +425.0%

Earnings before taxes (EBT) 49.1 100.5 -51.1% 11.7 57.0 -79.5%

Net income
(after minorities) 32.5 69.8 -53.4% 6.9 39.6 -82.6%

Cash flow from operating
activities 117.6 126.2 -6.8% 62.6 -7.6 +923.7%

Investments in fixed tangible
and intangible assets 40.2 27.7 +45.1% 17.3 13.8 +25.4%

Employees
as of end of period 13,397 12,949 +3.5% 13,397 12,949 +3.5%

* restated

The interim financial report for the first half of 2009 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 pdf
version. Printed copies can be requested by telephone (+43 316
6902-2722), fax (+43 316 6902-465), or e-mail
(investors@andritz.com).

For further information please contact:
Dr. Michael Buchbauer,
Head of Group Treasury, Corporate Communications & Investor Relations
Phone: +43 (316) 6902-2979
michael.buchbauer@andritz.com

The ANDRITZ GROUP The ANDRITZ GROUP is a global market leader for
customized plants, process technologies, and services for the
hydropower, pulp and paper, metals, and other industries
(solid/liquid separation, feed and biofuel). The Group is
headquartered in Graz, Austria and has a staff of approximately
13,400 employees worldwide. ANDRITZ operates over 150 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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ots Originaltext: Andritz AG
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:

Dr. Michael Buchbauer

Head of Group Treasury & 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 dealing