EANS-News: ANDRITZ GROUP: solid business development in the third quarter of 2014

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9-month report

Graz, November 6, 2014. In the third quarter of 2014, international
technology Group ANDRITZ showed solid business development in an
unchanged challenging economic environment:

- Sales amounted to 1,463.5 MEUR in the third quarter of 2014 and
were thus below the level of the previous year's reference period
(Q3 2013: 1,534.5 MEUR); the decline of 4.6% is mainly due to a
project-related drop in sales in the PULP & PAPER and the METALS
business areas. In the first three quarters of 2014, sales of the
Group amounted to 4,122.9 MEUR and thus practically reached last
year's reference figure (-0.5% versus Q1-Q3 2013: 4,144.6 MEUR).

- The order intake in the third quarter of 2014 amounted to 1,591.5
MEUR, which is 4.3% higher than the very good level in the third
quarter of 2013 (1,525.3 MEUR). This positive development is
attributable to the METALS business area, where several larger
orders were secured in the metalforming (Schuler) and aluminum
sectors. In the first three quarters of 2014, the order intake of
the Group saw very favorable development: At 4,571.6 MEUR, order
intake was 12.8% higher than in the previous year's reference period
(Q1-Q3 2013: 4,051.3 MEUR) - with the Schuler Group contributing
916.3 MEUR (Q1-Q3 2013: 657.8 MEUR); however, Schuler was only
included in the last year's reference period from March 1, 2013
(date of first-time consolidation). Excluding Schuler, the Group's
order intake would have increased by 7.7%.

- As of September 30, 2014, the order backlog amounted to 7,702.2
MEUR - an increase of 4.2% compared to the end of 2013 (December
31, 2013: 7,388.5 MEUR).

- In the third quarter of 2014, the EBITA amounted to 101.0 MEUR and
was thus 44.1% higher than the low level of the previous year's
reference period (Q3 2013: 70.1 MEUR), which was impacted
negatively by additional costs in the PULP & PAPER and the
SEPARATION business areas. The Group's EBITA margin also increased
substantially to 6.9% (Q3 2013: 4.6%). In the first three quarters
of 2014, the EBITA amounted to 234.4 MEUR (+40.4% versus Q1-Q3
2013: 167.0 MEUR) and the EBITA margin was 5.7% (Q1-Q3 2013: 4.0%).

- The net income of the Group in the first three quarters of 2014
amounted to 123.6 MEUR and was thus significantly higher than the
previous year's reference value (Q1-Q3 2013: 78.8 MEUR).

On the basis of this business development, the current order backlog,
and the sales contribution by the Schuler Group, which was not
included in the accounts for the full twelve months in 2013, ANDRITZ
expects a slight rise in sales in the 2014 business year compared to
the previous year. A significant improvement is expected in the net
income compared to the low level of 2013.

- End -

Key financial figures of the ANDRITZ GROUP at a glance

Unit Q1-Q3 '14 Q1-Q3 '13 +/- Q3 '14 Q3 '13 +/-
Sales MEUR 4,122.9 4,144.6 -0.5% 1,463.5 1,534.5 -4.6%
HYDRO MEUR 1,232.2 1,301.5 -5.3% 426.8 450.9 -5.3%
PULP & PAPER MEUR 1,369.9 1,456.7 -6.0% 500.6 524.5 -4.6%
METALS MEUR 1,111.8 962.9 +15.5% 389.5 413.7 -5.8%
SEPARATION MEUR 409.0 423.5 -3.4% 146.6 145.4 +0.8%

Order intake MEUR 4,571.6 4,051.3 +12.8% 1,591.5 1,525.3 +4.3%
HYDRO MEUR 1,166.0 1,221.6 -4.6% 351.4 367.3 -4.3%
PULP & PAPER MEUR 1,629.6 1,417.3 +15.0% 572.4 602.3 -5.0%
METALS MEUR 1,328.1 958.3 +38.6% 530.2 423.8 +25.1%
SEPARATION MEUR 447.9 454.1 -1.4% 137.5 131.9 +4.2%

Order backlog
(as of end
of period) MEUR 7,702.2 7,464.5 +3.2% 7,702.2 7,464.5 +3.2%

EBITDA MEUR 298.9 229.3 +30.4% 123.2 93.3 +32.0%
EBITDA margin % 7.2 5.5 - 8.4 6.1 -
EBITA MEUR 234.4 167.0 +40.4% 101.0 70.1 +44.1%
EBITA margin % 5.7 4.0 - 6.9 4.6 -

Earnings Before
Interest and
Taxes(EBIT) MEUR 176.0 116.2 +51.5% 81.6 50.3 +62.2%

Financial result MEUR -1.7 -5.4 +68.5% 0.0 -2.3 +100.0%

Earnings Before
Taxes (EBT) MEUR 174.3 110.8 +57.3% 81.6 48.0 +70.0%

Net income
(without non-
controlling
interests) MEUR 123.6 78.8 +56.9% 56.9 31.9 +78.4%

Cash flow from
operating
activities MEUR 225.6 -81.1 +378.2% 176.6 5.4 +3,170.4%

Capital
expenditure MEUR 61.9 65.5 -5.5% 27.4 21.1 +29.9%

Employees
(as of end of
(period; without
apprentices) - 24,468 23,939 +2.2% 24,468 23,939 +2.2%

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.

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 24,500 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