EANS-News: ANDRITZ GROUP: favorable business development in 2011

--------------------------------------------------------------------------------
Corporate news transmitted by euro adhoc. The issuer/originator is solely
responsible for the content of this announcement.
--------------------------------------------------------------------------------

Annual Reports

Graz (euro adhoc) - Graz, March 1, 2012. International technology
Group ANDRITZ showed very satisfactory business development in the
2011 business year, reaching record highs in order intake, sales, and
earnings.

Sales amounted to 4,596.0 MEUR (+29.3% vs. 2010: 3,553.8 MEUR). This
is mainly attributable to the PULP & PAPER business area, which
increased its sales by 67.9% to 1,855.9 MEUR (2010: 1,105.3 MEUR).
The HYDRO, SEPARATION, and METALS business areas also noted a sales
increase.

The order intake of the Group reached 5,706.9 MEUR (+38.1% vs. 2010:
4,131.9 MEUR). This was mainly due to the receipt of three large
orders in the PULP & PAPER and HYDRO business areas.

The order backlog as of end of 2011 amounted to 6,683.1 MEUR (+26.3%
vs. December 31, 2010: 5,290.9 MEUR).

The EBITA increased in line with sales by 28.7% to 331.5 MEUR (2010:
257.6 MEUR). Thus, the EBITA margin, at 7.2%, was unchanged compared
to 2010 (7.2%).

The net income of the Group (excluding non-controlling interests)
amounted to 230.7 MEUR (2010: 179.6 MEUR).

The balance sheet structure as of December 31, 2011 continued to be
solid: The equity ratio was 20.6% (December 31, 2010: 19.7%). Gross
cash (cash and cash equivalents plus marketable securities plus loans
against borrowers´ notes) amounted to 1,814.5 MEUR (December 31,
2010: 1,594.7 MEUR); the net liquidity (gross cash plus fair value of
interest rate swaps minus financial liabilities), at 1,400.6 MEUR,
was also significantly higher compared to previous year´s reference
figure (December 31, 2010: 1,177.0 MEUR).

At the coming Annual General Meeting, the Executive Board will
propose to increase the dividend to 2.20 EUR per share (2010: 1.70
EUR), corresponding with a payout ratio of almost 50%.

Wolfgang Leitner, President and CEO of ANDRITZ AG, says about the
expectations for the 2012 business year: "In spite of the uncertain
general economic conditions, we currently see solid project activity
overall in the markets we serve - apart from single major projects
that are difficult to forecast." On the basis of these expectations
and the high order backlog, the ANDRITZ GROUP expects an increase in
sales and net income in 2012 compared to 2011.

- End -

Important key financial figures of the ANDRITZ GROUP at a glance

(Acc. to IFRS; in MEUR) 2011 2010 +/- Q4 2011 Q4 2010 +/-
Sales 4,596.0 3,553.8 +29.3% 1,411.8 1,095.0 +28.9%
HYDRO 1,772.9 1,579.2 +12.3% 549.9 491.5 +11.9%
PULP & PAPER 1,855.9 1,105.3 +67.9% 582.8 337.6 +72.6%
SEPARATION 448.9 375.4 +19.6% 131.7 129.8 +1.5%
METALS 372.7 340.2 +9.6% 109.3 93.9 +16.4%
FEED & BIOFUEL 145.6 153.7 -5.3% 38.1 42.2 -9.7%

Order intake 5,706.9 4,131.9 +38.1% 808.3 896.1 -9.8%
HYDRO 2,096.2 1,870.1 +12.1% 283.5 328.7 -13.8%
PULP & PAPER 2,664.3 1,388.4 +91.9% 313.8 312.5 +0.4%
SEPARATION 468.6 424.3 +10.4% 94.9 113.4 -16.3%
METALS 318.6 302.7 +5.3% 64.8 106.0 -38.9%
FEED & BIOFUEL 159.2 146.4 +8.7% 51.3 35.5 +44.5%

Order backlog
(as of end of period) 6,683.1 5,290.9 +26.3% 6,683.1 5,290.9 +26.3%

EBITDA 386.2 307.3 +25.7% 124.9 105.2 +18.7%
EBITDA margin 8.4% 8.6% - 8.8% 9.6% -

EBITA 331.5 257.6 +28.7% 110.1 92.7 +18.8%
EBITA margin 7.2% 7.2% - 7.8% 8.5% -

Earnings Before
Interest and Taxes(EBIT) 312.7 245.5 +27.4% 104.8 89.2 +17.5%

Financial result 9.0 2.4 +275.0% 1.8 -1.4 +228.6%

Earnings Before
Taxes (EBT) 321.7 247.9 +29.8% 106.6 87.8 +21.4%

Net income
(excluding non-
controlling interests) 230.7 179.6 +28.5% 80.2 65.0 +23.4%

Cash flow from
operating activities 433.8 704.5 -38.4% 93.9 210.3 -55.3%

Investments in fixed
tangible and intangible
assets 77.0 68.8 +11.9% 35.3 32.1 +10.0%

Employees
(as of end of period) 16,750 14,655 +14.3% 16,750 14,655 +14.3%

The ANDRITZ GROUP International technology Group ANDRITZ is a
globally leading supplier of plants, equipment, and services for
hydropower stations, the pulp and paper industry, solid-liquid
separation in the municipal and industrial sectors, the steel
industry, and the production of animal feed and biomass pellets. In
addition, ANDRITZ offers technologies for certain other sectors
including automation, pumps, machinery for nonwovens and plastic
films, steam boiler plants, biomass boilers and gasification plants
for energy generation, flue gas cleaning plants, plants for the
production of panelboards (MDF), thermal sludge utilization, and
torrefaction plants. The publicly listed company is headquartered in
Graz, Austria, has a staff of approximately 16,700 employees, and
operates over 180 production sites as well as service and sales
companies all around the world.

Annual report and financial report The annual report and annual
financial report of the ANDRITZ GROUP are available online and as PDF
for download at the www.andritz.com. Print versions can be requested
by e-mail: investors@andritz.com.

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, Corporate Communications & Investor Relations
Tel.: +43 316 6902 2979
Fax: +43 316 6902 465
mailto:michael.buchbauer@andritz.com

end of announcement euro adhoc
--------------------------------------------------------------------------------

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