EANS-News: ANDRITZ: results for the second quarter and first half of 2013 - Solid order intake - Favorable sales development - Earnings below last year's reference figures

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6-month report

Graz (euro adhoc) - Graz, August 7, 2013. International technology
Group ANDRITZ showed solid business development in a continuing
difficult overall economic environment during the second
quarter/first half of 2013:

- In the second quarter of 2013, sales of the ANDRITZ GROUP amounted
to 1,446.3 MEUR, which is an increase of 15.5% compared to last
year's reference period (Q2 2012: 1,252.1 MEUR). This increase is
mainly due to consolidation of the Schuler Group. In the first half
of 2013, sales of the Group reached 2,610.1 MEUR, thus rising by
7.1% compared to the previous year's reference period (H1 2012:
2,437.8 MEUR).

- The order intake reached a solid level. In the second quarter of
2013, order intake amounted to 1,237.7 MEUR (+3.7% versus Q2 2012:
1,193.2 MEUR). In the first half of 2013, the order intake of
2,526.0 MEUR was slightly below the previous year's reference
figure (-1.1% versus H1 2012: 2,554.4 MEUR).

- As of June 30, 2013 the order backlog, at 7,644.4 MEUR, rose by
15.6% compared to the end of last year (December 31, 2012: 6,614.8
MEUR); this increase is due to consolidation of Schuler.

- Earnings (EBITA) of the Group amounted to 82.7 MEUR in the second
quarter of 2013, thus practically unchanged compared to last year's
reference period (-0.5% versus Q2 2012: 83.1 MEUR). Profitability
(EBITA margin) amounted to 5.7% (Q2 2012: 6.6%). This decline is
mainly due to decreasing earnings in the PULP & PAPER business area
(project mix) and the SEPARATION business area (additional costs
related to launch of new product series in China). Earnings of the
other business areas saw satisfactory development. In the first half
of 2013, the Group's EBITA amounted to 96.9 MEUR (-37.7% versus H1
2012: 155.6 MEUR) and the EBITA margin to 3.7% (H1 2012: 6.4%).
This significant decline is mainly due to decreasing earnings in
the PULP & PAPER business area (a provision was made in the first
quarter of 2013 in connection with the supply of production
technologies and equipment for a pulp mill in Uruguay) and in the
SEPARATION business area.

- The Group's EBIT in the first half of 2013 amounted to 65.9 MEUR,
thus declining stronger than the EBITA (-53.9% versus H1 2012:
143.1 MEUR). This is due to the scheduled amortization of
intangible assets according to IFRS in connection with the
acquisition of Schuler.

- Net income amounted to 46.9 MEUR and was thus significantly below
the reference figure for the previous year (H1 2012: 108.7 MEUR).

- The net worth position and capital structure as of June 30, 2013
remained solid. Net liquidity amounted to 817.7 MEUR (December 31,
2012: 1,285.7 MEUR) and thus reached a good level despite the
acquisition of Schuler (almost 600 MEUR).

ANDRITZ President and CEO Wolfgang Leitner: "In view of the very
difficult overall economic environment, we must be satisfied with the
business development of the ANDRITZ GROUP. For the remaining months
of the 2013 business year, we expect investment activity in our key
customer industries to remain subdued worldwide."

On the basis of these expectations, the order backlog, and
consolidation of the Schuler Group as of March 1, 2013, the ANDRITZ
GROUP expects a rise in sales in the 2013 business year compared to
the previous year. However, due to the sharp earnings decline in the
PULP & PAPER and SEPARATION business areas, as well as scheduled
amortization of intangible assets related to the acquisition of
Schuler, the net income will be significantly lower than the last
year's reference figure.

- End -

Key figures of the ANDRITZ GROUP at a glance*

(in MEUR) H1 2013 H1 2012 +/- Q2 2013 Q2 2012 +/-
Sales 2,610.1 2,437.8 +7.1% 1,446.3 1,252.1 +15.5%
HYDRO 850.6 807.0 +5.4% 469.4 403.6 +16.3%
PULP & PAPER 932.2 1,163.7 -19.9% 479.8 600.2 -20.1%
METALS 549.2 176.7 +210.8% 347.2 87.3 +297.7%
SEPARATION 278.1 290.4 -4.2% 149.9 161.0 -6.9%

Order intake 2,526.0 2,554.4 -1.1% 1,237.7 1,193.2 +3.7%
HYDRO 854.3 1,113.2 -23.3% 280.1 515.7 -45.7%
PULP & PAPER 815.0 981.2 -16.9% 391.5 451.8 -13.3%
METALS 534.5 111.3 +380.2% 390.0 47.0 +729.8%
SEPARATION 322.2 348.6 -7.6% 176.1 178.6 -1.4%

Order backlog
(as of end of
period) 7,644.4 6,935.9 +10.2% 7,644.4 6,935.9 +10.2%

EBITDA 136.0 184.7 -26.4% 104.0 98.2 +5.9%
EBITDA margin 5.2% 7.6% - 7.2% 7.8% -

EBITA 96.9 155.6 -37.7% 82.7 83.1 -0.5%
EBITA margin 3.7% 6.4% - 5.7% 6.6% -

Earnings Before
Interest and
Taxes (EBIT) 65.9 143.1 -53.9% 62.8 76.4 -17.8%

Financial result -3.1 6.7 -146.3% -2.0 3.3 -160.6%

Earnings Before
Taxes (EBT) 62.8 149.8 -58.1% 60.8 79.7 -23.7%

Net income
(without non-
contr. interests) 46.9 108.7 -56.9% 42.8 58.2 -26.5%

Cash flow from
operating
activities -86.5 115.1 -175.2% -6.8 77.9 -108.7%

Capital
expenditure 44.4 34.5 +28.7% 23.0 15.0 +53.3%

Employees
(as of end of
period; without
apprentices) 23,849 17,420 +36.9% 23,849 17,420 +36.9%

* The Schuler Group was consolidated into the consolidated financial
statements of the ANDRITZ GROUP as of March 1, 2013; for the
reference periods of last year, no pro-forma figures are available.

All figures according to IFRS. Due to the utilization of automatic
calculation programs, differences can arise in the addition of
rounded totals and percentages. MEUR = million euros.

The ANDRITZ GROUP The ANDRITZ GROUP is a globally leading supplier of
plants, equipment, and services for hydropower stations, the pulp and
paper industry, the metalworking and steel industries, and
solid/liquid separation in the municipal and industrial sectors. In
addition, ANDRITZ offers technologies for certain other sectors
including automation, the production of animal feed and biomass
pellets, 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 biomass
torrefaction plants. The publicly listed, international technology
Group is headquartered in Graz, Austria, and has a staff of around
23,800 employees. ANDRITZ operates over 220 production sites as well
as service and sales companies all around the world.

Annual and financial reports The annual reports and financial reports
of the ANDRITZ GROUP are available online and as PDF for download at
www.andritz.com. Printed copies can be requested by e-mail to
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:
Oliver Pokorny
Group Treasury, Corporate Communications & Investor Relations
Tel.: +43 316 6902 1332
Fax: +43 316 6902 465
mailto:oliver.pokorny@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