ANDRITZ GROUP: Solid business development with record order intake
International technology group ANDRITZ saw solid business development overall in the 2018 business year. At over 6.6 billion euros, the order intake reached a historic high, thus creating a good order backlog for 2019. The Executive Board will propose an unchanged dividend – compared to last year – of 1.55 euros per share to the Annual General Meeting. This is equal to an attractive dividend yield of approximately 3.5% based on the current ANDRITZ share price.
The results of the business year in detail:
- Due to the Group’s strong organic growth, the order intake of 6,646.2 MEUR reached a new record level and was thus significantly higher than the figure for the previous year’s reference period (+19.1% compared to 2017: 5,579.5 MEUR). All business areas were able to increase their order intake compared to the previous year’s reference period.
- The order backlog as of the end of 2018 was 7,084.3 MEUR, which is also significantly higher than the value for the previous year’s reference period (+11.0% compared to the end of 2017: 6,383.0 MEUR).
- Sales amounted to 6,031.5 MEUR and were thus 2.4% higher than the level of the previous year (2017: 5,889.1 MEUR). The Group’s service business saw very favorable development and accounted for 36% of total sales (2017: 34%).
- The development of earnings and profitability adjusted for extraordinary effects remained practically stable compared to the previous year. The EBITA, adjusted for provisions related to capacity restructuring measures in the Hydro and Metals Forming areas, amounted to 415.0 MEUR and was thus only slightly below the figure for the previous year’s reference period after adjustment for a positive extraordinary effect in the amount of around 25 MEUR (2017: 420.4 MEUR); the adjusted EBITA margin was 6.9% compared to 7.1% in 2017.
Including extraordinary effects, the EBITA amounted to 394.3 MEUR (2017: 444.0 MEUR) and the EBITA margin was 6.5%, after 7.5% in 2017.
- Net income (without non-controlling interests) declined to 222.0 MEUR (2017: 263.0 MEUR).
Wolfgang Leitner, President & CEO of ANDRITZ AG: “In spite of the decline in earnings, we are not dissatisfied with the past business year. The high organic growth in order intake once again confirms our technological and market leadership in the markets we serve. The companies we acquired in 2018 enable us to continue strengthening our competitive position, particularly in the service business. Also in 2019, we will continue to invest in the ANDRITZ GROUP’s long-term competitiveness."
For 2019, the ANDRITZ GROUP expects largely unchanged project and investment activity in its four business areas compared to 2018. Due to the high order backlog as of the end of 2018, ANDRITZ expects a substantial increase in sales for the current business year as well as an increase in profitability compared to 2018.