EANS-News: ANDRITZ: results for the third quarter of 2013

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Subtitle: - Order intake and sales significantly increased due to
Schuler - Sharp drop in earnings due to financial provisions in the
PULP & PAPER business area

quarterly report

Graz (euro adhoc) - Graz, November 6, 2013. Due to consolidation of
the Schuler Group acquired in February of this year, international
technology Group ANDRITZ saw solid development in sales and order
intake in a challenging economic environment in the third quarter of
2013. However, the EBITA declined substantially, mainly as a result
of financial provisions in the PULP & PAPER business area.

- In the third quarter of 2013, sales of the ANDRITZ GROUP amounted
to 1,534.5 MEUR, which is an increase of 21.3% compared to last
year's reference period (Q3 2012: 1,265.5 MEUR); this increase is
due to consolidation of the Schuler Group. In the first three
quarters of 2013, sales of the Group amounted to 4,144.6 MEUR, thus
rising by 11.9% compared to the previous year's reference period
(Q1-Q3 2012: 3,703.3 MEUR).

- The order intake also saw satisfactory development. Due to an
increase in the PULP & PAPER business area (+11.1%) and
consolidation of the Schuler Group, the order intake of the Group
in the third quarter of 2013, at 1,525.3 MEUR, rose by 23.1%
compared to last year's reference period (Q3 2012: 1,238.8 MEUR).
In the first three quarters of 2013, the order intake reached 4,051.3
MEUR (+6.8% versus Q1-Q3 2012: 3,793.2 MEUR).

- As of September 30, 2013, the order backlog, at 7,464.5 MEUR, rose
by 12.8% compared to the end of last year (December 31, 2012:
6,614.8 MEUR); this increase is due to the consolidation of
Schuler.

- Earnings (EBITA) of the Group amounted to 70.1 MEUR in the third
quarter of 2013, thus declining by 19.0% compared to last year's
reference period (Q3 2012: 86.5 MEUR). The profitability (EBITA
margin) amounted to 4.6% (Q3 2012: 6.8%). This significant decline
is mainly due to decreasing earnings in the PULP & PAPER business
area (additional provisions due to cost overruns in connection with
supplies for a pulp mill in South America) and the SEPARATION
business area (additional costs related to the market launch of a
new product series in China). Earnings of the other business areas
saw satisfactory development. Thus, the Group's EBITA in the first
three quarters of 2013 amounted to 167.0 MEUR (-31.0% versus Q1-Q3
2012: 242.1 MEUR) and the EBITA margin to 4.0% (Q1-Q3 2012: 6.5%).

- Net income amounted to 31.9 MEUR in the third quarter of 2013
(-45.5% versus Q3 2012: 58.5 MEUR) and to 78.8 MEUR in the first
three quarters of 2013 (-52.9% versus Q1-Q3 2012: 167.2 MEUR).

- The net worth position and capital structure as of September 30,
2013 remained solid. Due to the acquisition of Schuler, the net
liquidity, at 782.3 MEUR, was substantially below the value as of
December 31, 2012 (1,285.7 MEUR).

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 and provisions in connection with structural improvement
measures planned at Schuler, net income will be significantly lower
than last year's reference figure.

- End -

Key figures of the ANDRITZ GROUP at a glance*

(in MEUR) Q1-Q3 2013 Q1-Q3 2012 +/- Q3 2013 Q3 2012 +/-
Sales 4,144.6 3,703.3 +11.9% 1,534.5 1,265.5 +21.3%
HYDRO 1,301.5 1,245.7 +4.5% 450.9 438.7 +2.8%
PULP & PAPER 1,456.7 1,724.8 -15.5% 524.5 561.1 -6.5%
METALS 962.9 294.4 +227.1% 413.7 117.7 +251.5%
SEPARATION 423.5 438.5 -3.4% 145.4 148.1 -1.8%

Order intake 4,051.3 3,793.2 +6.8% 1,525.3 1,238.8 +23.1%
HYDRO 1,221.6 1,504.6 -18.8% 367.3 391.4 -6.2%
PULP & PAPER 1,417.3 1,523.3 -7.0% 602.3 542.1 +11.1%
METALS 958.3 270.8 +253.9% 423.8 159.5 +165.7%
SEPARATION 454.1 494.5 -8.2% 131.9 145.8 -9.5%

Order backlog (as
of end of per.) 7,464.5 6,929.8 +7.7% 7,464.5 6,929.8 +7.7%

EBITDA 229.3 286.1 -19.9% 93.3 101.4 -8.0%
EBITDA margin 5.5% 7.7% - 6.1% 8.0% -

EBITA 167.0 242.1 -31.0% 70.1 86.5 -19.0%
EBITA margin 4.0% 6.5% - 4.6% 6.8% -

Earnings Before
Interest and Taxes
(EBIT) 116.2 224.0 -48.1% 50.3 80.9 -37.8%

Financial result -5.4 7.0 -177.1% -2.3 0.3 -866.7%

Earnings Before
Taxes (EBT) 110.8 231.0 -52.0% 48.0 81.2 -40.9%

Net income
(without non-
controlling
interests) 78.8 167.2 -52.9% 31.9 58.5 -45.5%

Cash flow
from operating
activities -81.1 221.8 -136.6% 5.4 106.7 -94.9%

Capital
expenditure 65.5 52.3 +25.2% 21.1 17.8 +18.5%

Employees
(as of end of
period without
apprentices) 23,939 17,686 +35.4% 23,939 17,686 +35.4%

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

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.

Press release for download
This press release is available for download at the ANDRITZ web site:
www.andritz.com/news

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
23,900 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 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