EANS-News: ANDRITZ GROUP: Favorable business development in the second quarter of 2011

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6-month report

Graz (euro adhoc) - Graz, August 9, 2011. International technology
Group ANDRITZ showed a good business development in the second
quarter of 2011 and increased all relevant key figures compared to
last year´s reference period.

- Sales of the ANDRITZ GROUP amounted to 1,087.4 MEUR in the second
quarter of 2011 and was thus 31.0% higher than the reference
figure for the previous year (Q2 2010: 829.9 MEUR). While sales of
FEED & BIOFUEL were unchanged, all other business areas noted a
substantial increase in sales. In the first half of 2011, sales of
the Group amounted to 2,011.1 MEUR, thus rising by 28.7% compared
to last year´s reference figure (H1 2010: 1,562.2 MEUR).

- The order intake in the second quarter of 2011, at 1,978.5 MEUR,
reached the highest quarterly figure in the company´s history and
rose by 41.8% compared to the high level of the previous year (Q2
2010: 1,395.3 MEUR). The PULP & PAPER and the ENVIRONMENT &
PROCESS business areas saw a substantial increase in order intake.
In the first half of 2011, Group order intake amounted to 3,644.5
MEUR (+58.2% vs. H1 2010: 2,303.7 MEUR).

- The order backlog as of June 30, 2011, at 7,249.0 MEUR, also
reached a new record level and increased by 37.0% compared to the
figure at the end of 2010 (December 31, 2010: 5,290.9 MEUR).

- The EBITA amounted to 75.5 MEUR in the second quarter of 2011
(+39.3% vs. Q2 2010: 54.2 MEUR) and rose considerably more than
sales. Thus, profitability (EBITA margin) increased to 6.9% (Q2
2010: 6.5%). The EBITA in the first half of 2011 rose to 131.6
MEUR (97.9 MEUR in H1 2010: +34.4%), while the EBITA margin
reached 6.5% (H1 2010. 6.3%).

- The net income (excluding non-controlling interests) reached 51.5
MEUR in the second quarter of 2011 (Q2 2010: 38.4 MEUR) and 88.5
MEUR in the first half of 2011 (H1 2010: 67.3 MEUR).

- The balance sheet structure as of June 30, 2011 remained solid. The
equity ratio amounted to 18.6% (December 31, 2010: 19.7%). Liquid
funds (cash and cash equivalents plus marketable securities plus
fair value of interest rate swaps and loans against borrowers´
notes) amounted to 1,697.4 MEUR (December 31, 2010: 1,617.6 MEUR).
Net liquidity (liquid funds minus financial liabilities) increased
to 1,264.2 MEUR and thus was higher than at the end of last year
(December 31, 2010: 1,177.0 MEUR).

Commenting on the outlook for the 2011 business year, President and
CEO Wolfgang Leitner says: `At present, we see a good market
environment and solid project activity. Only in the METALS business
area, the moderate project and investment activity is expected to
continue.´

Based on these expectations and the business results for the first
six months of this year, the ANDRITZ GROUP continues to expect a
substantial increase in sales and a rise in net income in the 2011
business year compared to the previous year. If however, the global
economy suffers a setback due to the Euro and US debt crises in the
coming months, this could have a negative impact on the business
development of the ANDRITZ GROUP.

- End -

Key figures of the ANDRITZ GROUP at a glance

(Acc. to IFRS; in MEUR) H1 2011 H1 2010 +/- Q2 2011 Q2 2010 +/-
Sales 2,011.1 1,562.2 +28.7% 1,087.4 829.9 +31.0%
HYDRO 805.1 706.7 +13.9% 440.6 357.7 +23.2%
PULP & PAPER 780.5 479.3 +62.8% 413.5 262.3 +57.6%
METALS 162.1 162.1 +/-0% 91.0 84.1 +8.2%
ENVIRONMENT & PROCESS 192.8 144.5 +33.4% 105.2 88.8 +18.5%
FEED & BIOFUEL 70.6 69.6 +1.4% 37.1 37.0 +0.3%

Order intake 3,644.5 2,303.7 +58.2% 1,978.5 1,395.3 +41.8%
HYDRO 1,097.1 1,150.0 -4.6% 513.2 758.6 -32.3%
PULP & PAPER 2,037.9 748.7 +172.2% 1,226.8 408.6 +200.2%
METALS 183.1 141.6 +29.3% 78.4 98.9 -20.7%
ENVIRONMENT & PROCESS 252.8 181.9 +39.0% 121.9 92.7 +31.5%
FEED & BIOFUEL 73.6 81.5 -9.7% 38.2 36.5 +4.7%

Order backlog
(as of end of period) 7,249.0 5,384.9 +34.6% 7,249.0 5,384.9 +34.6%

EBITDA 157.0 123.2 +27.4% 88.3 67.6 +30.6%
EBITDA margin 7.8% 7.9% - 8.1% 8.1% -

EBITA 131.6 97.9 +34.4% 75.5 54.2 +39.3%
EBITA margin 6.5% 6.3% - 6.9% 6.5% -

Earnings Before Interest
and Taxes (EBIT) 123.1 92.8 +32.7% 71.1 51.4 +38.3%

Financial result 4.0 3.6 +11.1% 1.0 1.7 -41.2%

Earnings Before
Taxes (EBT) 127.1 96.4 +31.8% 72.1 53.1 +35.8%

Net income (excluding
non-controlling interests) 88.5 67.3 +31.5% 51.5 38.4 +34.1%

Cash flow from
operating activities 206.8 338.9 -39.0% 55.7 100.5 -44.6%

Investments in tangible
and intangible assets 23.5 22.2 +5.9% 13.2 8.3 +59.0%

Employees
(as of end of period) 16,119 13,457 +19.8% 16,119 13,457 +19.8%

The interim financial report for the first half of 2011 as well as
all annual and financial reports of the ANDRITZ GROUP are available
at www.andritz.com as online and pdf versions. Printed copies can be
requested by phone (+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 16,100 employees worldwide. ANDRITZ operates
over 180 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.

Further inquiry note:
Dr. Michael Buchbauer
Head of Group Treasury, Corporte Communications & Investor Relations
Tel.: +43 316 6902 2979
Fax: +43 316 6902 465
mailto:michael.buchbauer@andritz.com

end of announcement euro adhoc
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company: Andritz AG
Stattegger Straße 18
A-8045 Graz
phone: +43 (0)316 6902-0
FAX: +43 (0)316 6902-415
mail: welcome@andritz.com
WWW: www.andritz.com
sector: Machine Manufacturing
ISIN: AT0000730007
indexes: WBI, ATX Prime, ATX, ATX five
stockmarkets: official market: Wien
language: English