EANS-News: ANDRITZ GROUP: Results for Q2 and H1 2019 CNE

Friday, 02. August 2019 07:30
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Mid Year Results

Graz -
AUGUST 2, 2019: International technology Group ANDRITZ saw satisfactory business
development overall in the second quarter of 2019, however development by
business area differed considerably. The order intake - at just over two billion
euros - reached the second highest quarterly figure in the company's history.
While sales increased slightly, the EBITA remained stable compared to the
previous year. The key financial figures developed as follows:

* In the second quarter of 2019, order intake was well above the previous year's
  reference figure at 2,047.1 (+17.9% versus Q2 2018: 1,736.5 MEUR). This is
  mainly due to the Pulp & Paper business area, which was able to increase its
  order intake significantly in the capital equipment segment as well as in the
  service segment. In the other business areas however, order intake declined.
  Order intake in the first half of 2019 saw very favorable development and
  increased to 3,705.2 MEUR (+13.3% compared to H1 2018: 3,269.3 MEUR).

* The order backlog as of June 30, 2019 amounted to 7,724.2 MEUR and increased
  by 9.0% compared to the end of 2018 (7,084.3 MEUR) as a result of the good
  order intake development in the preceding quarters.

* Sales rose in the second quarter of 2019 by 6.9% compared to the previous
  year's reference period (Q2 2018: 1,472.1 MEUR) and reached 1,573.2 MEUR. The
  Pulp & Paper business area noted a sharp increase in sales that more than
  compensated for declining sales in the other business areas. Sales in the
  first half of 2019 amounted to 3,062.4 MEUR and increased by 10.8% compared to
  the previous year's reference period (first half of 2018: 2,763.1 MEUR).

* The EBITA in the second quarter of 2019 amounted to 94.7 MEUR and was thus
  practically unchanged compared to the figure for the previous year's reference
  period (Q2 2018: 94.6 MEUR) in spite of the rise in sales. This was due to the
  Metals business area, which saw a significant drop in earnings due to
  processing of low-margin orders and under-utilization of capacities in the
  Metals Forming division (Schuler). In contrast, the other business areas saw
  solid development and were able to increase their earnings compared to the
  previous year. The EBITA in the first half of 2019 amounted to 177.5 MEUR and
  was 6.7% higher than the previous year's reference figure (H1 2018: 166.3
  MEUR).

* The financial result decreased to -14.4 MEUR due to the significantly lower
  average net liquidity compared to the previous year as well as interest
  expenses for the Schuldscheindarlehen issued in the third quarter of 2018 (Q1
  2018: -8.6 MEUR).

* As a result, net income (without non-controlling interests) dropped to 43.9
  MEUR (Q2 2018: 56.6 MEUR). In the first half of 2019, the net income (without
  non-controlling interests) amounted to 77.5 MEUR (H1 2018: 100.6 MEUR).

OUTLOOK
With regard to the expectations for the full year 2019, ANDRITZ confirms its
guidance given at the publication of the Q1 2019 results and expects a
significant rise in sales compared to the previous year. In terms of
profitability, the company expects the operating EBITA margin without
extraordinary effects to remain unchanged at 6.9% (EBITA margin 2018 without
extraordinary effects: 6.9%).

Wolfgang Leitner, President & CEO of ANDRITZ AG: "We are very pleased with the
development of order intake and expect continuing good project activity in the
coming months, especially in the Pulp & Paper business area. As far as weak
earnings development in the Metals Forming division (Schuler) as a result of the
market environment is concerned, we are confident that we can achieve a
competitive cost structure and solid profitability once again in the medium term
with the adjustment measures now implemented."
KEY FINANCIAL FIGURES AT A GLANCE

                    Unit H1 2019 H1 2018 +/-     Q2 2019 Q2 2018 +/-     2018
Sales               MEUR 3,062.4 2,763.1 +10.8%  1,573.2 1,472.1 +6.9%   6,031.5
-Hydro              MEUR 675.6   724.3   -6.7%   337.2   374.5   -10.0%  1,517.5
-Pulp & Paper       MEUR 1,310.3 1,009.5 +29.8%  707.6   550.6   +28.5%  2,233.2
-Metals             MEUR 758.7   742.4   +2.2%   370.9   394.9   -6.1%   1,635.1
-Separation         MEUR 317.8   286.9   +10.8%  157.6   152.1   +3.6%   645.7
Order intake        MEUR 3,705.2 3,269.3 +13.3%  2,047.1 1,736.5 +17.9%  6,646.2
-Hydro              MEUR 601.8   753.1   -20.1%  287.9   318.2   -9.5%   1,445.8
-Pulp & Paper       MEUR 1,925.7 1,180.9 +63.1%  1,118.8 723.5   +54.6%  2,571.9
-Metals             MEUR 809.8   946.7   -14.5%  461.7   478.9   -3.6%   1,931.8
-Separation         MEUR 367.9   388.6   -5.3%   178.7   215.9   -17.2%  696.7
Order backlog (as   MEUR 7,724.2 6,841.1 +12.9%  7,724.2 6,841.1 +12.9%  7,084.3
of end of period)
EBITDA              MEUR 262.7   211.7   +24.1%  136.2   117.9   +15.5%  498.0
EBITDA margin       %    8.6     7.7     -       8.7     8.0     -       8.3
EBITA               MEUR 177.5   166.3   +6.7%   94.7    94.6    +0.1%   394.3
EBITA margin        %    5.8     6.0     -       6.0     6.4     -       6.5
Earnings Before
Interest and Taxes  MEUR 128.9   152.9   -15.7%  76.0    88.5    -14.1%  321.6
(EBIT)
Financial result    MEUR -20.8   -10.0   -108.0% -14.4   -8.6    -67.4%  -17.4
Earnings Before     MEUR 108.1   142.9   -24.4%  61.6    79.9    -22.9%  304.2
Taxes (EBT)
Net income (without
non-controlling     MEUR 77.5    100.6   -23.0%  43.9    56.6    -22.4%  222
interests)
Cash flow from
operating           MEUR 271.9   -101.2  +368.7% 215.9   -77.8   +377.5% 7.8
activities
Capital expenditure MEUR 62.0    47.2    +31.4%  36.6    24.7    +48.2%  137
Employees (as of
end of period;      -    29,616  26,023  +13.8%  29,616  26,023  +13.8%  29,096
without
apprentices)


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.

- End -

PRESS RELEASE AVAILABLE FOR DOWNLOAD
This press release is available for download at andritz.com/news.

ANDRITZ GROUP
ANDRITZ is an international technology group providing plants, systems,
equipment, and services for various industries. The company is one of the
technology and global market leaders in the hydropower business, the pulp and
paper industry, the metal working and steel industries, and in solid/liquid
separation in the municipal and industrial segments. Other important fields of
business are animal feed and biomass pelleting, as well as automation, where
ANDRITZ offers a wide range of innovative products and services in the IIoT
(Industrial Internet of Things) sector under the brand name of Metris. In
addition, the company is active in power generation (steam boiler plants,
biomass power plants, recovery boilers, and gasification plants) and
environmental technology (flue gas and exhaust gas cleaning plants) and offers
equipment for the production of nonwovens, dissolving pulp, and panelboard, as
well as recycling plants.

ANDRITZ stands for passion, partnership, perspectives and versatility - core
values to which the company is committed. The listed Group is headquartered in
Graz, Austria. With almost 170 years of experience, 29,600 employees, and more
than 280 locations in over 40 countries worldwide, ANDRITZ is a reliable and
competent partner and helps its customers to achieve their corporate and
sustainability goals.

Annual and financial reports
Annual and Financial reports are available for download at the ANDRITZ web site
andritz.com, and printed editions can be requested free of charge 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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issuer:       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
ISIN:         AT0000730007
indexes:      ATX, WBI
stockmarkets: Wien
language:     English

EAX0003    2019-08-02/07:30

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