EANS-News: ANDRITZ GROUP: results for the 2013 business year

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annual result

Graz (euro adhoc) - Graz, February 28, 2014. International
technology Group ANDRITZ looks back on a disappointing 2013 business
year. Although the HYDRO and METALS (including Schuler) business
areas saw very positive development, the results of the PULP & PAPER
and SEPARATION business areas were unsatisfactory. Together with
expected expenses and provisions for the structural improvement
program at Schuler, this resulted in a substantial decline in the
ANDRITZ GROUP's earnings and profitability in 2013 compared to the
preceding year. The main financial developments in detail:

- Sales of the ANDRITZ GROUP amounted to 5,710.8 MEUR and were thus
10.3% higher than the reference figure for the previous year (2012:
5,176.9 MEUR). This increase is due to consolidation of the Schuler
Group, which has contributed 966.6 MEUR in sales since its
first-time consolidation as of March 1, 2013.

- The order intake rose by 13.9% compared to the previous year,
reaching 5,611.0 MEUR (2012: 4,924.4 MEUR), with the Schuler Group
contributing 868.4 MEUR. The order intake of all four business
areas reached a satisfactory level.

- The order backlog amounted to 7,388.5 MEUR as of December 31, 2013,
an increase of 11.7% compared to the end of last year (December 31,
2012: 6,614.8 MEUR). The Schuler Group contributed 1,040.4 MEUR to
the Group's order backlog.

- Earnings (EBITA) amounted to 164.1 MEUR and were thus 54.1% below
the reference figure for the previous year (2012: 357.8 MEUR).
Profitability (EBITA margin) declined to 2.9% (2012: 6.9%). The
main reasons for this substantial decline are high expenses and
provisions in the PULP & PAPER business area for cost overruns in
connection with supplies to a pulp mill in South America as well as
planned exceptional expenses and provisions for the structural
improvement program at Schuler. Furthermore, additional costs for
the market launch of a new product series in China as well as the
moderate investment activity in the mining and chemical industries
led to a considerable decline in earnings in the SEPARATION business
area.

- Net income without non-controlling interests amounted to 66.6 MEUR
(-72.6% vs. 2012: 242.7 MEUR).

- Due to consolidation of the Schuler Group, total assets of the
ANDRITZ GROUP increased to 5,571.4 MEUR (year-end 2012: 5,161.0
MEUR). Due to the acquisition of Schuler, the net liquidity, at
893.1 MEUR, declined significantly compared to the reference figure
as of the end of 2012 (1,285.7 MEUR).

- In line with the earnings development, the Executive Board will
propose a decrease in dividend to 0.50 EUR per share for the 2013
business year (2012: 1.20 EUR) at the Annual General Meeting on
March 21, 2014, corresponding to a payout ratio of approximately
78% (2012: approximately 51%).

Referring to the outlook for the 2014 business year, Wolfgang
Leitner, President and CEO of ANDRITZ AG, says: "We do not anticipate
any significant recovery in the global economy in 2014 and thus
expect practically unchanged investment and project activity compared
to 2013 in the markets served by ANDRITZ, with some major projects
likely to be awarded in the hydro and pulp sectors."

On the basis of these expectations, the order backlog, and the sales
contribution by acquisitions not included in the full twelve-month
period in 2013, the ANDRITZ GROUP expects a slight rise in sales in
2014 compared to the previous year. The net income of the Group is
currently expected to see a significant improvement in 2014 compared
to the low earnings in 2013.

- End -

Key financial figures of the ANDRITZ GROUP at a glance

(in MEUR) 2013 2012* +/- Q4 2013 Q4 2012* +/-
Sales 5,710.8 5,176.9 +10.3% 1,566.2 1,473.6 +6.3%
HYDRO 1,804.8 1,836.8 -1.7% 503.3 591.1 -14.9%
PULP & PAPER 2,005.3 2,282.2 -12.1% 548.6 557.4 -1.6%
METALS 1,311.0 404.7 +223.9% 348.1 110.3 +215.6%
SEPARATION 589.7 653.2 -9.7% 166.2 214.7 -22.6%

Order intake 5,611.0 4,924.4 +13.9% 1,559.7 1,131.2 +37.9%
HYDRO 1,865.4 2,008.4 -7.1% 643.8 503.8 +27.8%
PULP & PAPER 1,907.7 1,962.4 -2.8% 490.4 439.1 +11.7%
METALS 1,233.8 324.2 +280.6% 275.5 53.4 +415.9%
SEPARATION 604.1 629.4 -4.0% 150.0 134.9 +11.2%

Order backlog
(as of end of period) 7,388.5 6,614.8 +11.7% 7,388.5 6,614.8 +11.7%

EBITDA 255.2 418.6 -39.0% 25.9 132.5 -80.5%
EBITDA margin 4.5% 8.1% - 1.7% 9.0% -

EBITA 164.1 357.8 -54.1% -2.9 115.7 -102.5%
EBITA margin 2.9% 6.9% - -0.2% 7.9% -

EBIT 89.8 334.5 -73.2% -26.4 110.5 -123.9%

Financial result -9.5 -4.1 -131.7% -4.1 -11.1 +63.1%

EBT 80.3 330.4 -75.7% -30.5 99.4 -130.7%

Net income
(without non-
controlling interests) 66.6 242.7 -72.6% -12.2 75.5 -116.2%

Cash flow from
operating activities 93.7 346.5 -73.0% 174.8 124.7 +40.2%

Capital expenditure 111.4 109.1 +2.1% 45.9 56.8 -19.2%

Employees
(as of end of
period; without
apprentices) 23,713 17,865 +32.7% 23,713 17.865 +32.7%

* Adjusted to comply with IAS 19 and IFRS 3

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. EUR = 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
23,700 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
Head of Corporte Communications
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