EANS-News: ANDRITZ GROUP: results for the first half of 2015

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6-month report

Graz, August 7, 2015. International technology Group ANDRITZ showed
solid business development in the first half of 2015 in a still
challenging overall economic environment. The key financial figures
developed as follows:

- In the first half of 2015, sales amounted to 3,005.6 MEUR, which is
an increase of 13.0% compared to the previous year's reference
period (H1 2014: 2,659.4 MEUR). In the second quarter of 2015,
sales rose by 11.2% compared to last year's reference figure,
reaching 1,601.3 MEUR (Q2 2014: 1,439.9 MEUR).

- Order intake amounted to 2,580.0 MEUR in the first half of 2015
(-13.4% versus H1 2014: 2,980.2 MEUR). While the order intake in
the HYDRO business area only dropped slightly (-2.5% versus H1
2014), order intake in the other business areas dropped - in some
cases substantially: PULP & PAPER -14.0%, METALS -25.4%, SEPARATION
-9.5%. In the second quarter of 2015, order intake amounted to
1,149.4 MEUR (-7.2% versus Q2 2014: 1,238.0 MEUR).

- The order backlog as of June 30, 2015, amounted to 7,349.0 MEUR
(-2.2% versus December 31, 2014: 7,510.6 MEUR).

- Earnings and profitability developed favorably. In the first half
of 2015, the EBITA rose by 38.6% to 184.9 MEUR (H1 2014: 133.4
MEUR) and the EBITA margin to 6.2% (H1 2014: 5.0%). In the second
quarter of 2015, the EBITA amounted to 111.5 MEUR (+31.5% versus Q2
2014: 84.8 MEUR), and the EBITA margin increased to 7.0% (Q2 2014:
5.9%). This positive development is mainly due to the HYDRO and
PULP & PAPER business areas, which achieved a substantial increase
in profitability compared to the previous year's reference period.

- Net income (without non-controlling interests) rose considerably in
the first half of 2015 and amounted to 113.9 MEUR (+70.8% versus H1
2014: 66.7 MEUR).

Wolfgang Leitner, President and CEO of ANDRITZ: "In view of the
unchanged difficult economic environment, we are satisfied with the
business development in the first half of 2015. However, project and
investment activity has slowed down in some of our end markets, in
some cases substantially, and this activity has also become
increasingly volatile. Hence, we shall continue the structural
measures already implemented in the past few years in order to adapt
our value chain to these changed market conditions and thus increase
our flexibility."

Based on the current project activity in the ANDRITZ business areas
and on the order backlog as of the end of June 2015, ANDRITZ
currently expects an increase in sales and net income for the 2015
business year compared to the previous year. If, however, the
economic weakness in the emerging countries (particularly in China)
continues in the coming months, the global economy suffers any severe
setbacks, or there is major turmoil in the international foreign
currency and financial markets, this could have a negative impact on
ANDRITZ's business development. This could necessitate organizational
and capacity adjustments in individual business areas and thus result
in financial provisions that could negatively impact the earnings of
the ANDRITZ GROUP.

- End -

Key financial figures of the ANDRITZ GROUP at a glance

(in MEUR) H1 2015 H1 2014 +/- Q2 2015 Q2 2014 +/- 2014
Sales 3,005.6 2,659.4 +13.0% 1,601.3 1,439.9 +11.2% 5,859.3
HYDRO 866.3 805.5 +7.5% 458.4 442.7 +3.5% 1,752.3
PULP & PAPER 1,043.9 869.3 +20.1% 563.4 469.7 +19.9% 1,969.3
METALS 796.1 722.3 +10.2% 419.0 389.5 +7.6% 1,550.4
SEPARATION 299.3 262.4 +14.1% 160.5 138.1 +16.2% 587.3

Order intake 2,580.0 2,980.2 -13.4% 1,149.4 1,238.0 -7.2% 6,101.0
HYDRO 794.7 814.7 -2.5% 347.7 291.4 +19.3% 1,816.7
PULP & PAPER 908.9 1,057.2 -14.0% 446.5 402.4 +11.0% 1,995.7
METALS 595.4 797.9 -25.4% 210.5 377.8 -44.3% 1,692.8
SEPARATION 281.0 310.4 -9.5% 144.7 166.4 -13.0% 595.8

Order backlog
(as of end
of period) 7,349.0 7,555.7 -2.7% 7,349.0 7,555.7 -2.7% 7,510.6

EBITDA 230.9 175.7 +31.4% 134.8 106.2 +26.9% 472.0
EBITDA margin (%) 7.7 6.6 - 8.4 7.4 - 8.1

EBITA 184.9 133.4 +38.6% 111.5 84.8 +31.5% 379.5
EBITA margin (%) 6.2 5.0 - 7.0 5.9 - 6.5

Earnings Before
Interest and
Taxes(EBIT) 159.6 94.4 +69.1% 98.1 65.4 +50.0% 295.7

Financial result 6.7 -1.7 +494.1% 5.6 -0.3 +1,966.7% 3.7

Earnings Before
Taxes (EBT) 166.4 92.7 +79.5% 103.8 65.2 +59.2% 299.4

Net income
(without non-
controlling
interests) 113.9 66.7 +70.8% 69.9 46.0 +52.0% 210.9

Cash flow from
operating
activities -7.8 49.0 -115.9% -45.0 -12.0 -275.0% 342.1

Capital
expenditure 36.3 34.4 +5.5% 15.5 17.2 -9.9% 106.5

Employees
(as of end of
period; without
apprentices) 24,992 24,126 +3,6% 24,992 24,126 +3.6% 24,853

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.

Press release for download
The press release is available for download at www.andritz.com/news.

The ANDRITZ GROUP ANDRITZ is a globally leading supplier of plants,
equipment, and services for hydropower stations, the pulp and paper
industry, the metalworking and steel industries, and for solid/liquid
separation in the municipal and industrial sectors. The publicly
listed technology Group is headquartered in Graz, Austria, and has a
staff of almost 25,000 employees. ANDRITZ operates over 250 sites
worldwide.

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:
Dr. Michael Buchbauer
Head of Investor Relations
Tel.: +43 316 6902 2979
Fax: +43 316 6902 465
mailto:michael.buchbauer@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