ANDRITZ: results for the first quarter of 2009
- Increase in sales, slight decrease in earnings
- Order intake below the previous year’s high value
- Good order backlog at approx. 4.5 billion Euros
- Unchanged good net liquidity at approx. 458 MEUR
International technology Group ANDRITZ increased its sales during the first quarter of 2009 in comparison with last year’s reference period, but in the face of the difficult economic environment, earnings were down slightly, especially in the PULP & PAPER business area. Order intake was lower than the previous year’s high reference value. The Group’s order backlog, at approx. 4.5 billion Euros as of March 31, 2009, was solid and further increased compared to the value as of end of December 2008. The ANDRITZ GROUP continues to expect its sales to decline by about 15% in the full year 2009 and its net income also to decrease versus the financial year 2008.
- The ANDRITZ GROUP’S sales during the first quarter of 2009 amounted to 790.1 MEUR, an increase of 5.2% compared to the reference quarter of last year (Q1 2008: 750.9 MEUR). The HYDRO, METALS, and ENVIRONMENT & PROCESS business areas achieved increases in their sales compared to the previous year. Sales of the PULP & PAPER business area declined compared to last year’s reference period, in particular due to the weak capital and modernization business as a result of the global economic weakness.
Order intake below the previous year’s high value, good order backlog
- In the face of the global financial and economic crisis, order intake during the first quarter of 2009, at 981.4 MEUR, was solid, however 17.9% below the very high level of the reference period of last year (Q1 2008: 1,195.7 MEUR). While the order intake of PULP & PAPER and METALS was on the decline, the HYDRO business area achieved a significant increase of its order intake compared to the reference quarter of last year.
- Order backlog as of March 31, 2009, amounted to 4,464.0 MEUR, an increase of 4.4% compared to the value as of December 31, 2008. This was in particular due to the favorable development of the HYDRO business area.
Earnings below the last year’s reference values
- The ANDRITZ GROUP’S EBITA during the first quarter of 2009 amounted to 43.7 MEUR, a slight decrease of 4.0% compared to the reference quarter of last year (Q1 2008: 45.5 MEUR). As a consequence, the Group’s EBITA margin decreased to 5.5% (Q1 2008: 6.1%). This was mainly due to the significant decline in the earnings of the PULP & PAPER business area, resulting from lower sales and lower capacity utilization, especially in the capital investment business. However, the HYDRO and the ENVIRONMENT & PROCESS business areas’ earnings increased in comparison to the first quarter of 2008.
- The financial result declined to -4.2 MEUR (Q1 2008: -0.5 MEUR). This was mainly due to mark-to-market adjustments for money market funds in connection with the global financial crisis.
- Net income excluding minority interests amounted to 25.7 MEUR in the first quarter of 2009, thus decreasing by 14.9% compared to last year’s reference value (Q1 2008: 30.2 MEUR).
- Solid balance sheet structure with high net liquidity
- Total assets as of March 31, 2009, increased to 3,166.0 MEUR (December 31, 2008: 3,086.3 MEUR); the equity ratio amounted to 17.6% (December 31, 2008: 18.7%).
- Liquid funds (Cash and cash equivalents plus Marketable securities) amounted to 876.8 MEUR as of March 31, 2009 (December 31, 2008: 821.8 MEUR). The net liquidity (Liquid funds plus Fair value of interest rate swaps minus Financial liabilities) increased to 457.8 MEUR and was thus significantly higher than at the end of last year (December 31, 2008: 408.9 MEUR).
Outlook for the ANDRITZ GROUP
ANDRITZ confirms its sales and earnings guidance for the financial year 2009 published with the financial figures for 2008 and expects sales to decline by approx. 15% and the net income to decrease in comparison to 2008. ‛The difficult overall economic environment hasn’t changed during the past few months. The likelihood of project realizations and therefore the development of the order intake are very difficult to assess, especially in the PULP & PAPER und METALS business areas. For the HYDRO business area, we expect the good development to continue’, says Wolfgang Leitner, President & CEO of ANDRITZ AG, and adds: ‛Already in 2008, we started to adapt our capacities in some areas, and therefore, from today’s point of view, we are well equipped for this difficult environment.’
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The interim financial report for the first quarter of 2009 as well as the annual and financial reports of the ANDRITZ GROUP are available on the ANDRITZ website at www.ANDRITZ.com as an online and pdf version. Printed copies can be requested by telephone (+43.316.6902.2722), fax (+43.316.6902-465), or e-mail ( email@example.com).
For further information, please contact:
Dr. Michael Buchbauer,
Head of Group Treasury, Corporate Communications & Investor Relations
Phone: +43 (316) 6902 2979
The ANDRITZ GROUP
The ANDRITZ GROUP is a global market leader for customized plants, process technologies, and services for the hydropower, pulp and paper, metals, and other industries (solid/liquid separation, feed and biofuel). The Group is headquartered in Graz, Austria and has a staff of 13,600 employees worldwide. ANDRITZ operates over 150 production sites, service, and sales companies all around the world.
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.