ANDRITZ GROUP: Solid business development in 2017
International technology group ANDRITZ saw satisfactory business development overall in the past business year. The Executive Board will propose an increased dividend payment of 1.55 EUR per share to the Annual General Meeting of Shareholders.
The results of the business year in detail:
- Sales amounted to 5,889.1 MEUR and were thus 2.5% below the level of the previous year (2016: 6,039.0 MEUR). This is due primarily to the significant drop in sales in the Hydro business area (-9.7% compared to 2016) as a result of the declining order intake in the preceding years. Service business saw very favorable development and accounted for 34% of total sales (2016: 32%).
- Order intake amounted to 5,579.5 MEUR and was thus practically at the same level as the previous year’s reference period (+0.2% compared to 2016: 5,568.8 MEUR). While the Pulp & Paper, Metals, and Separation business areas were able to increase their order intake compared to the previous year, the order intake in the Hydro business area declined sharply.
- The order backlog at the end of 2017 amounted to 6,383.0 MEUR(-6.0% compared to the end of 2016: 6,789.2 MEUR).
- In spite of the drop in sales, the EBITA increased to 444.0 MEUR(+0.4% compared to 2016: 442.1 MEUR). This is due to a non-recurring extraordinary effect – as reported on the occasion of the results for the firsthalf of 2017 – in the amount of around 25 MEUR, which resulted mainly from thesale of the Schuler Technical Center in Tianjin.
- Net income (without non-controlling interests) decreased due to the decline of the financial result to 263.0 MEUR (2016: 274.6 MEUR).
- The net worth position and capital structure as of December 31,2017 remained solid. Total assets amounted to 6,265.3 MEUR (December 31, 2016:6,198.6 MEUR). The equity ratio reached 21.2% (December 31, 2016: 21.7%). At 908.0 MEUR, net liquidity remained at a solid level (December 31, 2016: 945.3MEUR).
At the Annual General Meeting on March 23, 2018, the Executive Board will propose an increase in dividend to 1.55 EUR per share (2016: 1.50EUR). This is equal to a payout ratio of around 60.1% (2016: around 55.8%).
For 2018, ANDRITZ assumes that project activity will remain unchanged compared to the preceding year and expects from today’s perspective a good business development. Wolfgang Leitner, President and CEO of ANDRITZ AG:“We are positive overall for 2018 and expect stable sales compared to 2017 and satisfactory profitability.