The 2020 business year at a glance
Solid business development despite difficult overall economic conditions
Order intake saw solid development despite the latent global economic crisis and, at 6,108 MEUR, was only 16% below the very high level of the previous year’s reference period (2019: 7,282 MEUR), which included two large orders in the Pulp & Paper business area to build new pulp mills.
The Metals business area was negatively affected both by the worldwide economic downturn as a result of the Covid-19 pandemic and by the continuing structural weakness of the global automotive market. Order intake in the Hydro business area reached practically the same level as the respective figure for the previous year's reference period in spite of the difficult economic conditions.
Pulp & Paper
The Group’s revenue amounted to 6,700 MEUR, reaching a new record level (+0.4% vs. 2019: 6,674 MEUR) in spite of the difficult economic situation. This is due to the Pulp & Paper business area, which increased its revenue significantly compared to the previous year – particularly as a result of processing large orders in the capital business received in the past quarters – and thus was able to more than offset the decline in revenue in the other business areas.
Revenue in the Metals and Hydro business areas declined significantly compared to the previous year due to the sharp drop in order intake in the past few quarters and years, respectively. Revenue in the Separation business area also declined.
Pulp & Paper
The order backlog of the ANDRITZ GROUP amounted to 6,774 MEUR as of December 31, 2020 and was thus 13% lower than the reference figure for the previous year (December 31, 2019: 7,778 MEUR).
Cost discipline and continuation of the efficiency measures implemented due to the Covid-19 crisis in order to maintain liquidity and the ability to compete, in combination with the high revenue, led to an increase in the operating result (EBITA) to 392 MEUR.
This result includes provisions of around 79 MEUR for capacity adjustments, especially for the Metals Forming and Hydro business areas and, to a lesser extent, also for the other business areas. Earnings were higher than the figure for the previous year’s reference period (2019: 343 MEUR), which also included provisions totaling around 113 MEUR for restructuring in Metals Forming and for smaller capacity adjustments in the other business areas.
Excluding these extraordinary effects, the EBITA of the Group amounted to 471 MEUR in the reporting year (EBITA of the Group in 2019 excluding extraordinary effects: 456 MEUR), and profitability increased to 7.0% (adjusted EBITA margin 2019: 6.8%).
NET WORTH POSITION AND CAPITAL STRUCTURE
Total assets amounted to 7,057 MEUR (December 31, 2019: 7,234 MEUR), while the equity ratio was 17.8% (December 31, 2019: 16.9%). Liquid funds amounted to 1,719 MEUR as of December 31, 2020 (as of the end of 2019: 1,610 MEUR), while net liquidity amounted to 421 MEUR (as of the end of 2019: 245 MEUR).