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

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6-month report

09.08.2010

Graz, August 9, 2010. International technology Group ANDRITZ showed
a favorable business development in the first half of 2010.
Especially in the second quarter, sales, earnings, and profitability
rose substantially compared to the previous year´s reference figures;
order intake in the second quarter of 2010 reached the highest
quarterly figure in the company´s history.

Rise in sales in the second quarter of 2010 In the second quarter of
2010, sales of the ANDRITZ GROUP rose by 5.9%, to 829.9 MEUR (Q2
2009: 784.0 MEUR). With the exception of METALS, all business areas
recorded significant increases in sales. Thus, sales of the Group in
the first half of 2010, at 1,562.2 MEUR, were only slightly below the
reference figure for the previous year (H1 2009: 1,574.1 MEUR).

Record levels in order intake and order backlog Order intake of the
ANDRITZ GROUP in the second quarter of 2010 amounted to 1,395.3 MEUR,
which was the highest quarterly figure ever achieved in the company´s
history. Compared to the reference figure for the previous year (Q2
2009: 731.3 MEUR), order intake almost doubled. Order intake rose in
all business areas compared to the previous year´s reference figures,
with the HYDRO and PULP & PAPER business areas achieving substantial
increases. In total, the order intake of the Group amounted to
2,303.7 MEUR in the first half of 2010 and was thus 34.5% higher than
the previous year´s reference figure (H1 2009: 1,712.7 MEUR). With
the exception of METALS, all business areas saw a rise in order
intake.

The order backlog as of June 30, 2010 amounted to 5,384.9 MEUR and
was thus higher than the figure for the previous year´s reference
period (+22% vs. June 30, 2009: 4,426.9 MEUR), as well as exceeding
the value for the end of 2009 (+21% vs. December 31, 2009: 4,434.5
MEUR).

Favorable development in earnings and profitability EBITA of the
ANDRITZ GROUP in the second quarter of 2010 amounted to 54.2 MEUR and
was thus many times higher than the very low reference figure for Q2
2009 (12.8 MEUR), which was impacted by restructuring expenses of
approximately 24 MEUR. Excluding these restructuring expenses,
earnings increased by 46.1%. Profitability (EBITA margin) rose
substantially in the second quarter of 2010, to 6.5% (Q2 2009: 1.6%;
4.7% excl. restructuring expenses), with all business areas showing
significant increases in earnings in absolute terms, as well as in
profitability. The EBITA of the Group in the first half of 2010
increased to 97.9 MEUR (H1 2009: 56.5 MEUR), while the EBITA margin
was up to 6.3% (H1 2009: 3.6%; 5.1% excl. restructuring expenses).

The net income (excluding non-controlling interests) amounted to 67.3
MEUR in the first half of 2010 and was thus more than double the
figure for the previous year´s reference period (H1 2009: 32.5 MEUR).

Unchanged solid net worth position and capital structure As of June
30, 2010, the ANDRITZ GROUP showed an unchanged solid net worth
position and capital structure: total assets rose to 3,750.1 MEUR
(December 31, 2009: 3,309.3 MEUR), and the equity ratio amounted to
19.6% (December 31, 2009: 20.0%).

Liquid funds (cash and cash equivalents plus marketable securities)
as of June 30, 2010 amounted to 1,340.0 MEUR (December 31, 2009:
1,082.1 MEUR). Net liquidity (liquid funds plus fair value of
interest rate swaps minus financial liabilities) increased to 932.8
MEUR (December 31, 2009: 677.9 MEUR); this rise is mainly due to
receipt of advance payments for some large orders.

Outlook for the full year 2010 ANDRITZ expects solid project activity
in all business areas for the coming months and confirms the sales
and earnings expectations for the 2010 business year published with
the figures for the full year 2009: Sales of the ANDRITZ GROUP should
at least reach the level of 2009 or increase slightly, while net
income should be impacted positively by the cost reductions resulting
from restructuring measures initiated in 2009. As Wolfgang Leitner,
President and CEO of ANDRITZ AG, explains, ´The results for the first
half of 2010 are satisfactory - above all due to the positive
development by all business areas in the second quarter - and have
shown that we took the right measures at the right time, with a good
sense of proportion, in the light of the general economic crisis. We
are on the right course and optimistic that we can achieve our
targets for the 2010 business year.´

- End -

Key figures of the ANDRITZ GROUP at a glance

(acc. to IFRS; in MEUR) H1 2010 H1 2009 +/- Q2 2010 Q1 2009 +/-
Sales 1,562.2 1,574.1 -0.8% 829.9 784.0 +5.9%
HYDRO 706.7 650.4 +8.7% 357.7 333.8 +7.2%
PULP & PAPER 479.3 465.8 +2.9% 262.3 232.1 +13.0%
METALS 162.1 243.6 -33.5% 84.1 108.6 -22.6%
ENVIRONMENT & PROCESS 144.5 151.8 -4.8% 88.8 81.0 +9.6%
FEED & BIOFUEL 69.6 62.5 +11.4% 37.0 28.5 +29.8%

Order intake 2,303.7 1,712.7 +34.5% 1,395.3 731.3 +90.8%
HYDRO 1,150.0 1,054.5 +9.1% 758.6 480.3 +57.9%
PULP & PAPER 748.7 302.8 +147.3% 408.6 138.1 +195.9%
METALS 141.6 145.3 -2.5% 98.9 21.7 +355.8%
ENVIRONMENT & PROCESS 181.9 153.0 +18.9% 92.7 68.7 +34.9%
FEED & BIOFUEL 81.5 57.1 +42.7% 36.5 22.5 +62.2%

Order backlog
(as of end of period) 5,384.9 4,426.9 +21.6% 5,384.9 4,426.9 +21.6%

EBITDA 123.2 89.2 +38.1% 67.6 33.0 +104.8%
EBITDA margin 7.9% 5.7% - 8.1% 4.2% -

EBITA 97.9 56.5* +73.3% 54.2 12.8* +323.4%
EBITA margin 6.3% 3.6%* - 6.5% 1.6%* -

Earnings Before Interest
and Taxes (EBIT) 92.8 52.0 +78.5% 51.4 10.4 +394.2%

Financial result 3,6 -2.9 +224.1% 1.7 1.3 +30.8%

Earnings Before Taxes (EBT) 96.4 49.1 +96.3% 53.1 11.7 +353.8%

Net income (excl. non-
controlling interests) 67.3 32.5 +107.1% 38.4 6.8 +464.7%

Cash flow from
operating activities 338.9 117.6 +188.2% 100.5 62.6 +60.5%

Investments in
fixed tangible and
intangible assets 22.2 40.2 -44.8% 8.3 17.3 -52.0%

Employees
(as of end of period) 13,457 13,397 +0.4% 13,457 13,397 +0.4%

*including restructuring expenses

The interim financial report for the first half of 2010, 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 a pdf
version. 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 13,500 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