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

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quarterly report

Graz (euro adhoc) - Graz, November 8, 2011. International technology
Group ANDRITZ achieved a significant increase in all relevant
financial key figures in the third quarter of 2011 compared to the
previous year´s reference period.

- Sales of the ANDRITZ GROUP amounted to 1,173.1 MEUR in the third
quarter of 2011, thus exceeding last year´s reference figure by
30.8% (Q3 2010: 896.6 MEUR). With the exception of the FEED &
BIOFUEL business area, all business areas recorded substantial
increases in sales. In the first three quarters of 2011, sales
rose to 3,184.2 MEUR, thus increasing by 29.5% compared to the
reference period of last year (Q1-Q3 2010: 2,458.8 MEUR).

- The order intake increased significantly, to 1,254.1 MEUR in the
third quarter of 2011 (+34.5% vs. Q3 2010: 932.1 MEUR), mainly due
to the booking of a large order in the HYDRO business area. Thus,
the order intake of the Group in the first three quarters of 2011
rose to 4,898.6 MEUR, surpassing the reference value of last year
by 51.4% (Q1-Q3 2010: 3,235.8 MEUR).

- The order backlog as of September 30, 2011 reached the all-time
high of 7,325.0 MEUR, thus up by 38.4% compared to the figure for
December 31, 2010 (5,290.9 MEUR).

- The EBITA in the third quarter of 2011, at 89.8 MEUR, was 34.0%
higher than last year´s reference value (Q3 2010: 67.0 MEUR) and
thus rose slightly more than sales. Profitability (EBITA margin)
amounted to 7.7% (Q3 2010: 7.5%). The EBITA in the first three
quarters of 2011 increased to 221.4 MEUR (164.9 MEUR in Q1-Q3
2010: +34.3%); the EBITA margin reached 7.0% (Q1-Q3 2010: 6.7%).

- The net income (excluding non-controlling interests) amounted to
62.0 MEUR in the third quarter of 2011 (Q3 2010: 47.3 MEUR) and
150.5 MEUR in the first three quarters of 2011 (Q1-Q3 2010: 114.6
MEUR).

- The balance sheet and capital structure showed an unchanged solid
financial position as of September 30, 2011. The equity ratio
amounted to 19.5% (December 31, 2010: 19.7%). The liquid funds
(cash and cash equivalents plus marketable securities plus fair
value of interest rate swaps plus loans against borrowers´ notes)
increased to 1,787.0 MEUR (December 31, 2010: 1,617.6 MEUR). The
net liquidity (liquid funds minus financial liabilities), at
1,330.4 MEUR, was also higher than at the end of last year (December
31, 2010: 1,177.0 MEUR).

President and CEO Wolfgang Leitner says about the outlook for the
2011 business year: "We currently see solid project activity in all
markets that ANDRITZ serves. Only in the METALS business area we
expect the moderate project activity to continue."

On the basis of these expectations and the business results in the
first nine months of the current year, the ANDRITZ GROUP confirms the
financial outlook for the business year 2011 and expects an increase
of sales to more than four billion Euros and a rise in the net income
compared to the previous year. However, if the global economy should
deteriorate further in the coming months, this may have a negative
impact on the Group´s earnings.

- End -

Key figures of the ANDRITZ GROUP at a glance

(According to IFRS;
in MEUR) Q1-Q3 2011 Q1-Q3 2010 +/- Q3 2011 Q3 2010 +/-
Sales 3,184.2 2,458.8 +29.5% 1,173.1 896.6 +30.8%
HYDRO 1,223.0 1,087.7 +12.4% 417.9 381.0 +9.7%
PULP & PAPER 1,273.1 767.7 +65.8% 492.6 288.4 +70.8%
METALS 263.4 246.3 +6.9% 101.3 84.2 +20.3%
SEPARATION 317.2 245.6 +29.2% 124.4 101.1 +23.0%
FEED & BIOFUEL 107.5 111.5 -3.6% 36.9 41.9 -11.9%

Order intake 4,898.6 3,235.8 +51.4% 1,254.1 932.1 +34.5%
HYDRO 1,812.7 1,541.4 +17.6% 715.6 391.4 +82.8%
PULP & PAPER 2,350.5 1,075.9 +118.5% 312.6 327.2 -4.5%
METALS 253.8 196.7 +29.0% 70.7 55.1 +28.3%
SEPARATION 373.7 310.9 +20.2% 120.9 129.0 -6.3%
FEED & BIOFUEL 107.9 110.9 -2.7% 34.3 29.4 +16.7%

Order backlog (as of
(end of period) 7,325.0 5,477.6 +33.7% 7,325.0 5,477.6 +33.7%

EBITDA 261.3 202.1 +29.3% 104.3 78.9 +32.7%
EBITDA margin 8.2% 8.2% - 8.9% 8.8% -

EBITA 221.4 164.9 +34.3% 89.8 67.0 +34.0%
EBITA margin 7.0% 6.7% - 7.7% 7.5% -

Earnings Before Interest
and Taxes (EBIT) 207.9 156.3 +33.0% 84.8 63.5 +33.5%

Financial result 7.1 3.8 +86.8% 3.1 0.2 +1,450%

Earnings Before
Taxes (EBT) 215.1 160.1 +34.4% 88.0 63.7 +38.1%

Net income
(excluding non-
controlling interests) 150.5 114.6 +31.3% 62.0 47.3 +31.1%

Cash flow from
operating activities 339.9 494.2 -31.2% 133.1 155.3 -14.3%

Investments in tangible
and intangible assets 41.7 36.7 +13.6% 18.2 14.5 +25.5%

Employees
(as of end of period) 16,692 14,267 +17.0% 16,692 14,267 +17.0%

The interim financial report for the first three quarters 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 may 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 16,700 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 Treasruy, Corporate 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