EANS-Adhoc: ANDRITZ: results for the first quarter of 2010

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3-month report

07.05.2010

Graz, May 7, 2010. International technology Group ANDRITZ showed a
satisfactory business development in the first quarter of 2010. Sales
amounted to 732 MEUR (-7% vs. Q1 2009). Order intake amounted to 908
MEUR and thus declined by 7% compared to the very high reference
value for the previous year, but was still significantly higher than
the figures for the preceding quarters. Order backlog as of March 31,
2010 amounted to 4.7 billion EUR, which is an increase of 6% compared
to the reference date for last year. In spite of the decline in
sales, EBITA, at 43.7 MEUR, was at the same level as during last
year´s reference period (Q1 2009: 43.7 MEUR). Thus, profitability
(EBITA margin) increased to 6.0% (2009: 5.5%). Net income (excluding
non-controlling interests) amounted to 29 MEUR (Q1 2009: 26 MEUR).

Sales declining, HYDRO business area remains strong Sales of the
ANDRITZ GROUP amounted to 732.3 MEUR during the first quarter of
2010, thus 7.3% below the reference figure for the previous year (Q1
2009: 790.1 EUR). While the HYDRO business area achieved a
significant increase in sales compared to last year´s reference
quarter, sales in the other business areas declined - especially in
METALS and ENVIRONMENT & PROCESS.

Solid development of order intake and order backlog Order intake of
the ANDRITZ GROUP saw a solid development in the first quarter of
2010, amounting to 908.4 MEUR and thus declining by 7.4% compared to
the very high reference value for the previous year, but still
significantly higher than the figures for the preceding quarters.
Order intake of the HYDRO business area was significantly below the
very high reference value for last year, which had included some
major orders; also the METALS business area saw a significant decline
in order intake. In contrast, order intake of the PULP & PAPER
business area developed very favorably, more than doubling the figure
for last year´s reference period.

Order backlog of the ANDRITZ GROUP as of March 31, 2010 amounted to
4,724.3 MEUR, an increase of 5.8% compared to the reference date for
last year (March 31, 2009: 4,464.0 MEUR).

Satisfactory earnings, increased profitability Despite the decline in
sales, EBITA of the ANDRITZ GROUP, at 43.7 MEUR in the first quarter
of 2010, remained stable compared to the reference value of last year
(Q1 2009: 43.7 MEUR). While earnings in the HYDRO and the PULP &
PAPER business areas rose significantly, the METALS and the
ENVIRONMENT & PROCESS business areas in particular showed a decline
in earnings.

EBITA margin of the Group increased to 6.0% and was thus higher than
during the reference period for the last year (Q1 2009: 5.5%). In
particular, the HYDRO and the PULP & PAPER business areas´
profitability developed very favorably.

Net income (excluding non-controlling interests) amounted to 28.9
MEUR, which is an increase of 12.5% compared to the reference figure
of the previous year (Q1 2009: 25.7 MEUR).

Solid balance sheet structure, substantially higher liquidity Total
assets increased to 3,538.0 MEUR as of March 31, 2010 (December 31,
2009: 3,309.3 MEUR); the equity ratio amounted to 19.0% (December 31,
2009: 20.0%).

Liquid funds (cash and cash equivalents plus marketable securities)
amounted to 1,296.5 MEUR as of March 31, 2010 (December 31, 2009:
1,082.1 MEUR). Net liquidity (liquid funds plus fair value of
interest rate swaps minus financial liabilities) increased to 897.7
MEUR, thus also substantially higher than at the end of last year
(December 31, 2009: 677.9 MEUR).

Outlook for 2010 confirmed The ANDRITZ GROUP confirms its financial
guidance made on the occasion of the release of the 2009 financial
results in March 2010 concerning the expected development of the
markets it serves and the business development for the 2010 financial
year. President and CEO Wolfgang Leitner comments: "While we expect a
favorable market environment for the HYDRO business area in the next
few months, and the ENVIRONMENT & PROCESS and the FEED & BIOFUEL
business areas should also develop satisfactorily, we assume that the
very moderate investment activity in the METALS business area will
continue in the coming quarters. In the PULP & PAPER business area,
we do not expect any sustained improvement for the time being despite
the good order intake in the first quarter."

Based on these expectations and the order backlog of more than 4.7
bn. EUR at the end of March 2010, the ANDRITZ GROUP expects sales in
2010 to remain unchanged or slightly up compared to 2009. The cost
reductions resulting from the restructuring measures implemented in
2009 should positively impact the net income.

- End -

Key figures of the ANDRITZ GROUP at a glance

(Acc. to IFRS) Unit Q1 2010 Q1 2009 +/- 2009

Sales MEUR 732.3 790.1 -7.3% 3,197.5
HYDRO MEUR 349.0 316.6 +10.2% 1,378.0
PULP & PAPER MEUR 217.0 233.7 -7.1% 903.3
METALS MEUR 78.0 135.0 -42.2% 473.4
ENVIRONMENT & PROCESS MEUR 55.7 70.8 -21.3% 322.6
FEED & BIOFUEL MEUR 32.6 34.0 -4.1% 120.2

Order intake MEUR 908.4 981.4 -7.4% 3,349.3
HYDRO MEUR 391.4 574.2 -31.8% 1,693.9
PULP & PAPER MEUR 340.1 164.7 +106.5% 923.0
METALS MEUR 42.7 123.6 -65.5% 296.2
ENVIRONMENT & PROCESS MEUR 89.2 84.3 +5.8% 305.4
FEED & BIOFUEL MEUR 45.0 34.6 +30.1% 103.8

Order backlog
(as of end of period) MEUR 4,724.3 4,464.0 +5.8% 4,434.5

EBITDA MEUR 55.6 56.2 -1.1% 218.2
EBITDA margin % 7.6 7.1 - 6.8

EBITA MEUR 43.7 43.7 0.0% 164.1
EBITA margin % 6.0 5.5 - 5.1

Earnings Before Interest
and Taxes (EBIT) MEUR 41.4 41.6 -0.5% 147.1

Financial result MEUR 1.9 -4.2 +145.2% 2.6

Earnings Before
Taxes (EBT) MEUR 43.3 37.4 +15.8% 149.6

Net income (excl. non-
controlling interests) MEUR 28.9 25.7 +12.5% 96.8

Cash flow from
operating activities MEUR 238.4 55.0 +333.5% 345.7

Investments in fixed
tangible and intangible
assets MEUR 13.9 22.9 -39.3% 70.5

Employees
(as of end of period) - 13,370 13,600 -1.7% 13,049

The interim financial report for the first quarter of 2010 as well as
the annual and financial reports of the ANDRITZ GROUP are available
at www.andritz.com in online and pdf versions. Printed copies can be
requested by telephone (+43 316 6902-2722), fax (+43 316 6902-465),
or 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 13,400 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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ots Originaltext: Andritz AG
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:

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