EANS-News: ANDRITZ GROUP: satisfactory business development in Q2/H1 2012

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quarterly report

Graz (euro adhoc) - Graz, August 7, 2012. International technology
Group ANDRITZ showed satisfactory business development in Q2/H1 2012:
- Sales of the ANDRITZ GROUP amounted to 1,252.1 MEUR in the second
quarter of 2012, which is an increase of 15.1% compared to last
year's reference period (Q2 2011: 1,087.4 MEUR). Particularly the
PULP & PAPER business area noted a sharp rise in sales. In the
first half of 2012, sales of the Group reached 2,437.8 MEUR
(+21.2% vs. H1 2011: 2,011.1 MEUR).

- The order intake, in the second quarter of 2012 at 1,193.2 MEUR and
in the first half of 2012 at 2,554.4 MEUR, reached a satisfactory
level overall - even though it was significantly below the very
high reference figures of last year (-39.7% vs. Q2 2011: 1,978.5
MEUR and -29.9% vs. H1 2011: 3,644.5 MEUR), which included two
large PULP & PAPER orders (a 350 MEUR order booked in Q1 2011 and
a 750 MEUR order booked in Q2 2011). In the SEPARATION and FEED &
BIOFUEL business areas in particular, the order intake developed very
favorably in the second quarter of 2012.

- The order backlog as of June 30, 2012 amounted to 6,935.9 MEUR,
thus increasing slightly compared to the reference value as of
December 31, 2011 (6,683.1 MEUR: +3.8%).

- EBITA in the second quarter of 2012, at 83.1 MEUR, rose by 10.1%
compared to last year's reference figure (Q2 2011: 75.5 MEUR).
EBITA margin, at 6.6%, was lower than in the second quarter of
2011 (6.9%). This is mainly attributable to PULP & PAPER
(execution of large orders) and SEPARATION (expenses for regional
expansion). In the first half of 2012, the EBITA increased to
155.6 MEUR (+18.2% vs. H1 2011: 131.6 MEUR); the EBITA margin, at
6.4%, was practically unchanged compared to last year's reference
figure (H1 2011: 6.5%).

- Net income (excluding non-controlling interests) increased by 22.8%
compared to the previous year's reference period to 108.7 MEUR (H1
2011: 88.5 MEUR).

- The net worth position and capital structure as of June 30, 2012
remained solid. The equity ratio was at 20.3% (December 31, 2011:
20.6%). Liquid funds amounted to 1,631.2 MEUR (December 31, 2011:
1,814.5 MEUR) and the net liquidity to 1,205.0 MEUR (December 31,
2011: 1,400.6 MEUR). This decline is mainly due to the purchase of
approximately 25% of the shares in Schuler AG (slightly less than
150 MEUR).

Commenting on the expectations for the 2012 business year, President
and CEO Wolfgang Leitner says: "In spite of the increasing
uncertainty with regard to the economic development in our main end
customer industries as well as in China and South America, we
currently still see sufficient project activity in the majority of
the markets that we serve."

On the basis of these expectations and given the very high order
backlog of slightly less than 7 billion EUR as of June 30, 2012, the
ANDRITZ GROUP expects an increase in sales in 2012 in comparison with
the previous year's figures. The net income is also expected to rise
compared to last year. If, however, the global economy continues to
suffer more severe setbacks in 2012, this could have a negative
impact on the sales and earnings developments of the ANDRITZ GROUP,
making it impossible to achieve the sales and earnings targets set.

- End -

Key financial figures of the ANDRITZ GROUP at a glance

(Acc. to IFRS; in MEUR) H1 2012 H1 2011 +/- Q2 2012 Q2 2011 +/-
Sales 2,437.8 2,011.1 +21.2% 1,252.1 1,087.4 +15.1%
HYDRO 807.0 805.1 +0.2% 403.6 440.6 -8.4%
PULP & PAPER* 1,163.7 794.2 +46.5% 600.2 420.9 +42.6%
SEPARATION* 200.5 179.1 +11.9% 110.5 97.8 +13.0%
METALS 176.7 162.1 +9.0% 87.3 91.0 -4.1%
FEED & BIOFUEL 89.9 70.6 +27.3% 50.5 37.1 +36.1%

Order intake 2,554.4 3,644.5 -29.9% 1,193.2 1,978.5 -39.7%
HYDRO 1,113.2 1,097.1 +1.5% 515.7 513.2 +0.5%
PULP & PAPER* 981.2 2,053.7 -52.2% 451.8 1,236.2 -63.5%
SEPARATION* 259.4 237.0 +9.5% 135.3 112.5 +20.3%
METALS 111.3 183.1 -39.2% 47.0 78.4 -40.1%
FEED & BIOFUEL 89.3 73.6 +21.3% 43.4 38.2 +13.6%

Order backlog
(as of end of period) 6,935.9 7,249.0 -4.3% 6,935.9 7,249.0 -4.3%

EBITDA 184.7 157.0 +17.6% 98.2 88.3 +11.2%
EBITDA margin 7.6% 7.8% - 7.8% 8.1% -

EBITA 155.6 131.6 +18.2% 83.1 75.5 +10.1%
EBITA margin 6.4% 6.5% - 6.6% 6.9% -

Earnings Before Interest
and Taxes (EBIT) 143.1 123.1 +16.2% 76.4 71.1 +7.5%

Financial result 6.7 4.0 +67.5% 3.3 1.0 +230.0%

Earnings Before
Taxes (EBT) 149.8 127.1 +17.9% 79.7 72.1 +10.5%

Net income
(excluding non-
controlling interests) 108.7 88.5 +22.8% 58.2 51.5 +13.0%

Cash flow from
operating activities 119.4 206.8 -42.3% 88.2 55.7 +58.3%

Investment in fixed
tangible and intangible
assets 34.5 23.5 +46.8% 15.0 13.2 +13.6%

Employees
(as of end of period) 17,420 16,119 +8.1% 17,420 16,119 +8.1%

* At the beginning of 2012, there was a minor product shift from the
SEPARATION to the PULP & PAPER business area. Comparison figures for
2011 have been adjusted accordingly in both business areas.

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 17,400 employees, and
operates over 180 production sites as well as service and sales
companies all around the world.

Annual and financial reports Annual reports and financial reports of
the ANDRITZ GROUP are available at www.andritz.com as online and pdf
versions. Printed copies can be requested at 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
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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