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Andritz 1H 2013 results: EBITA down 37.7% from year ago to Euro 96.9 million

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Andritz 1H 2013 results: EBITA down 37.7% from year ago to Euro 96.9 million

August 12, 2013 - 10:06

  • Solid order intake
  • Favorable sales development
  • Earnings below last year's reference figures

GRAZ, Austria, Aug. 7, 2013 (Press Release) - International technology Group ANDRITZ showed solid business development in a continuing difficult overall economic environment during the second quarter/first half of 2013:

  • In the second quarter of 2013, sales of the ANDRITZ GROUP amounted to 1,446.3 MEUR, which is an increase of 15.5% compared to last year's reference period (Q2 2012: 1,252.1 MEUR). This increase is mainly due to consolidation of the Schuler Group. In the first half of 2013, sales of the Group reached 2,610.1 MEUR, thus rising by 7.1% compared to the previous year's reference period (H1 2012: 2,437.8 MEUR).
  • The order intake reached a solid level. In the second quarter of 2013, order intake amounted to 1,237.7 MEUR (+3.7% versus Q2 2012: 1,193.2 MEUR). In the first half of 2013, the order intake of 2,526.0 MEUR was slightly below the previous year's reference figure (-1.1% versus H1 2012: 2,554.4 MEUR).
  • As of June 30, 2013 the order backlog, at 7,644.4 MEUR, rose by 15.6% compared to the end of last year (December 31, 2012: 6,614.8 MEUR); this increase is due to consolidation of Schuler.
  • Earnings (EBITA) of the Group amounted to 82.7 MEUR in the second quarter of 2013, thus practically unchanged compared to last year's reference period (-0.5% versus Q2 2012: 83.1 MEUR). Profitability (EBITA margin) amounted to 5.7% (Q2 2012: 6.6%). This decline is mainly due to decreasing earnings in the PULP & PAPER business area (project mix) and the SEPARATION business area (additional costs related to launch of new product series in China). Earnings of the other business areas saw satisfactory development. In the first half of 2013, the Group's EBITA amounted to 96.9 MEUR (-37.7% versus H1 2012: 155.6 MEUR) and the EBITA margin to 3.7% (H1 2012: 6.4%). This significant decline is mainly due to decreasing earnings in the PULP & PAPER business area (a provision was made in the first quarter of 2013 in connection with the supply of production technologies and equipment for a pulp mill in Uruguay) and in the SEPARATION business area.
  • The Group's EBIT in the first half of 2013 amounted to 65.9 MEUR, thus declining stronger than the EBITA (-53.9% versus H1 2012: 143.1 MEUR). This is due to the scheduled amortization of intangible assets according to IFRS in connection with the acquisition of Schuler.
  • Net income amounted to 46.9 MEUR and was thus significantly below the reference figure for the previous year (H1 2012: 108.7 MEUR).
  • The net worth position and capital structure as of June 30, 2013 remained solid. Net liquidity amounted to 817.7 MEUR (December 31, 2012: 1,285.7 MEUR) and thus reached a good level despite the acquisition of Schuler (almost 600 MEUR).

ANDRITZ President and CEO Wolfgang Leitner: "In view of the very difficult overall economic environment, we must be satisfied with the business development of the ANDRITZ GROUP. For the remaining months of the 2013 business year, we expect investment activity in our key customer industries to remain subdued worldwide."

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, the net income will be significantly lower than the last year's reference figure.