EANS-News: ANDRITZ GROUP: Good business development in the first quarter of 2011

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quarterly report

Graz (euro adhoc) - Graz, May 6, 2011. International technology
Group ANDRITZ showed good business development in the first quarter
of 2011 and increased all relevant key figures compared to last
year´s reference period: -Sales of the ANDRITZ GROUP amounted to
923.7 MEUR, thus 26.1% higher than the reference figure for the
previous year (Q1 2010: 732.3 MEUR). While sales of the PULP &
PAPER and ENVIRONMENT & PROCESS business areas increased
substantially compared to the first quarter of 2010, sales in the
METALS business area declined slightly.

-Order intake developed very favorably. At 1,666.0 MEUR, it almost
doubled compared to last year´s reference period (+83.4% vs. Q1
2010: 908.4 MEUR). Particularly the HYDRO, PULP & PAPER, and
METALS business areas were able to increase order intake
significantly.

-At 6,388.0 MEUR, order backlog as of March 31, 2011 reached a new
record high and rose by 20.7% compared to the reference value as
of the end of last year (December 31, 2010: 5,290.9 MEUR).

-EBITA in the first quarter of 2011, at 56.1 MEUR, increased by 28.4%
compared to last year´s reference period (Q1 2010: 43.7 MEUR), rising
slightly more than sales. Thus, profitability (EBITA margin)
increased slightly to 6.1% (Q1 2010: 6.0%).

-Net income (excluding non-controlling interests) amounted to 37.0
MEUR (Q1 2010: 28.9 MEUR).

-The balance sheet structure as of March 31, 2011 remained solid. The
equity ratio amounted to 17.1% (December 31, 2010: 19.7%). Liquid
funds (cash and cash equivalents plus marketable securities) rose
to 1,726.2 MEUR (December 31, 2010: 1,594.7 MEUR). The net
liquidity (liquid funds plus fair value of interest rate swaps
minus financial liabilities) increased to 1,312.0 MEUR (December
31, 2010: 1,177.0 MEUR).

Outlook for the 2011 business year President and CEO Wolfgang Leitner
comments on the expected development of the markets served by
ANDRITZ: `We expect good market environment and solid project
activity to continue in all of the ANDRITZ GROUP business areas
except METALS, where we anticipate project and investment activity to
remain subdued, at least until the end of the year.´

On the basis of these expectations and the order backlog of
approximately 6.4 billion EUR as of March 31, 2011, the ANDRITZ GROUP
expects a significant increase in sales in 2011 compared to 2010. Net
income is also expected to rise compared to the previous year.

- End -

Key figures of the ANDRITZ GROUP at a glance

(Acc. to IFRS) Unit Q1 2011 Q1 2010 +/- 2010
Sales MEUR 923.7 732.3 +26.1% 3,533.8
HYDRO MEUR 364.5 349.0 +4.4% 1,579.2
PULP & PAPER MEUR 367.0 217.0 +69.1% 1,105.3
METALS MEUR 71.1 78.0 -8.8% 340.2
ENVIRONMENT & PROCESS MEUR 87.6 55.7 +57.3% 375.4
FEED & BIOFUEL MEUR 33.5 32.6 +2.8% 153.7

Order intake MEUR 1,666.0 908.4 +83.4% 4,131.9
HYDRO MEUR 583.9 391.4 +49.2% 1,870.1
PULP & PAPER MEUR 811.1 340.1 +138.5% 1,388.4
METALS MEUR 104.7 42.7 +145.2% 302.7
ENVIRONMENT & PROCESS MEUR 130.9 89.2 +46.7% 424.3
FEED & BIOFUEL MEUR 35.4 45.0 -21.3% 146.4

Order backlog
(as of end of period) MEUR 6,388.0 4,724.3 +35.2% 5,290.9

EBITDA MEUR 68.7 55.6 +23.6% 307.3
EBITDA margin % 7.4 7.6 - 8.6

EBITA MEUR 56.1 43.7 +28.4% 257.6
EBITA margin % 6.1 6.0 - 7.2

Earnings Before Interest
and Taxes (EBIT) MEUR 52.0 41.4 +25.6% 245.5

Financial result MEUR 3.0 1.9 +57.9% 2.4

Earnings Before Taxes
(EBT) MEUR 55.0 43.3 +27.0% 247.9

Net income (excluding
non-controlling interests) MEUR 37.0 28.9 +28.0% 179.6

Cash flow from
operating activities MEUR 151.0 238.4 -36.6% 704.5

Investments in tangible
and intangible assets MEUR 10.3 13.9 -25.9% 68.8

Employees
(as of end of period) MEUR 15,856 13,370 +18.6% 14,655

The interim financial report for the first quarter of 2011 is
available online and as download at www.andritz.com. Printed copies
can be requested by telephone (+43 316 6902 2722), fax (+43 316 6902
465), or by 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 15,900 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