EANS-News: ANDRITZ GROUP: solid business development in the first half of 2014

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6-month report

Graz, August 7, 2014. International technology Group ANDRITZ showed
solid business development in the first half of 2014 in a still
challenging overall economic environment. - Sales increased slightly
to 2,659.4 MEUR in the first half of 2014 (+1.9% versus H1 2013:
2,610.1 MEUR); this increase is attributable to the Schuler Group,
which only contributed four months to the previous year's reference
period (first-time consolidation as of March 1, 2013). Sales in the
second quarter of 2014, at 1,439.9 MEUR, almost reached the
reference figure of last year (-0.4% versus Q2 2013: 1,446.3 MEUR).

- The order intake amounted to 2,980.2 MEUR in the first half of 2014
and was thus well above the previous year's reference figure
(+18.0% versus H1 2013: 2,526.0 MEUR). This significant increase is
mainly due to the good order intake in the PULP & PAPER and METALS
business areas in the first quarter of 2014. The order intake in
the second quarter of 2014, at 1,238.0 MEUR, was practically
unchanged compared to the level in the second quarter of 2013
(1,237.7 MEUR).

- As of June 30, 2014, the order backlog amounted to 7,555.7 MEUR
which is an increase of 2.3% compared to the end of last year
(December 31, 2013: 7,388.5 MEUR).

- In the first half of 2014, the EBITA amounted to 133.4 MEUR (+37.7%
versus H1 2013: 96.9 MEUR) and the EBITA margin was 5.0% (H1 2013:
3.7%). Thus, earnings were significantly above the low reference
figure for the previous year, which was strongly negatively
impacted in the first quarter of 2013 by high provisions booked for
a pulp mill project in South America. In the second quarter of
2014, the EBITA amounted to 84.8 MEUR and was thus 2.5% above the
figure for the second quarter of 2013 (82.7 MEUR). The EBITA margin
slightly increased to 5.9% (Q2 2013: 5.7%).

- The net income reached 66.7 MEUR in the first half of 2014 and was
thus well above the very low reference figure for the previous year
(+42.2% versus H1 2013: 46.9 MEUR).

ANDRITZ President and CEO Wolfgang Leitner: "Given the overall
economic situation and the competitive environment, order intake and
sales of the ANDRITZ GROUP saw solid development. We achieved a
significant improvement in earnings compared to the previous year's
reference period, although further improvements are necessary to
reach our target figures. We expect unchanged project activity in the
markets we serve for the current second half of the year."

Based on the business development so far, the order backlog, and -
compared to 2013 - additional two months sales contribution by the
Schuler Group, ANDRITZ expects a slight rise in sales in the 2014
business year compared to the previous year. Net income is expected
to show a significant improvement compared to the low level of 2013.

- End -

Key financial figures of the ANDRITZ GROUP at a glance

Unit H1 2014 H1 2013 +/- Q2 2014 Q2 2013 +/-
Sales MEUR 2,659.4 2,610.1 +1.9% 1,439.9 1,446.3 -0.4%
HYDRO MEUR 805.5 850.6 -5.3% 442.7 469.4 -5.7%
PULP & PAPER MEUR 869.3 932.2 -6.7% 469.7 479.8 -2.1%
METALS MEUR 722.3 549.2 +31.5% 389.5 347.2 +12.2%
SEPARATION MEUR 262.4 278.1 -5.6% 138.1 149.9 -7.9%

Order intake MEUR 2,980.2 2,526.0 +18.0% 1,238.0 1,237.7 0.0%
HYDRO MEUR 814.7 854.3 -4.6% 291.4 280.1 +4.0%
PULP & PAPER MEUR 1,057.2 815.0 +29.7% 402.4 391.5 +2.8%
METALS MEUR 797.9 534.5 +49.3% 377.8 390.0 -3.1%
SEPARATION MEUR 310.4 322.2 -3.7% 166.4 176.1 -5.5%

Order backlog
(as of end
of period) MEUR 7,555.7 7,644.4 -1.2% 7,555.7 7,644.4 -1.2%

EBITDA MEUR 175.7 136.0 +29.2% 106.2 104.0 +2.1%
EBITDA margin % 6.6 5.2 - 7.4 7.2 -
EBITA MEUR 133.4 96.9 +37.7% 84.8 82.7 +2.5%
EBITA margin % 5.0 3.7 - 5.9 5.7 -

Earnings Before
Interest a. Taxes
(EBIT) MEUR 94.4 65.9 +43.2% 65.4 62.8 +4.1%
Financial result MEUR -1.7 -3.1 +45.2% -0.2 -2.0 +90.0%
Earnings Before
Taxes (EBT) MEUR 92.7 62.8 +47.6% 65.2 60.8 +7.2%
Net income
(without non-
controlling
interests) MEUR 66.7 46.9 +42.2% 46.0 42.8 +7.5%

Cash flow from
operating
activities MEUR 49.0 -86.5 +156.6% -12.0 -6.8 -76.5%
Capital
expenditure MEUR 34.4 44.4 -22.5% 17.2 23.0 -25.2%
Employees
(as of end of
period; without
apprentices) - 24,126 23,849 +1.2% 24,126 23,849 +1.2%

Remark: The Schuler Group was consolidated into the consolidated
financial statements of the ANDRITZ GROUP as of March 1, 2013 and is
part of the METALS business area.

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. The
publicly listed, international technology Group is headquartered in
Graz, Austria, and has a staff of around 24,100 employees. ANDRITZ
operates over 250 production sites as well as service and sales
companies all around the world. The ANDRITZ GROUP ranks among the
global market leaders in all four of its business areas. One of the
Group's overall strategic goals is to strengthen and extend this
position. At the same time, the company aims to secure the
continuation of profitable growth in the long-term.

Annual and financial reports The annual and financial reports of the
ANDRITZ GROUP are available as PDF for download at www.andritz.com.
Printed copies may be requested free of charge from
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 Corporate 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