International technology Group Andritz saw solid development in sales and order intake in a challenging economic environment in the third quarter of 2013, due to consolidation of the Schuler Group acquired in February of this year.

However, the EBITA declined substantially, mainly as a result of financial provisions in the Pulp & Paper business area, the group reports.

Sales growth

In the third quarter of 2013, sales of the Andritz Group amounted to EUR 1,534.5 million, which is an increase of 21.3% compared to same period last year.

This increase is due to consolidation of the Schuler Group. In the first three quarters of 2013, sales of the group amounted to EUR 4,144.6 million, rising by 11.9% compared to the previous year.

Order intake

The order intake also saw satisfactory development. Due to an 11.1% increase in the Pulp & Paper business area and consolidation of the Schuler Group, the order intake of the group in the third quarter of 2013, rose by 23.1% compared to last year’s reference period. In the first three quarters of 2013, the order intake reached EUR 4,051.3 million, a 6.8% improvement over the last year.

As of 30 September 2013, the order backlog, at EUR 7,464.5 million, rose by 12.8% compared to the end of last year, due to the consolidation of Schuler, Andritz reports.

Earnings drop

Earnings (EBITA) of the group amounted to EUR 70.1 million in the third quarter of 2013, declining by 19% compared to last year’s reference period.

The profitability amounted to 4.6%, a decrease from 6.8% for the same period last year. This significant decline is mainly due to decreasing earnings in the Pulp & Paper business area and the Separation business area, which included additional costs related to the market launch of a new product series in China. Earnings of the other business areas saw satisfactory development.

The group’s EBITA in the first three quarters of 2013 amounted to EUR 167 million, declining by 31% comparing to the last year, and the EBITA margin only reached 4.0%.

Net income

Net income amounted to EUR 31.9 million in the third quarter of 2013, which is a 45.5% drop, compared to last year, and to EUR 78.8 million in the first three quarters of 2013, declining by more than a half over the same period of 2012.

The net worth position and capital structure as of 30 September,2013 remained solid. Due to the acquisition of Schuler, the net liquidity, at EUR 782.3 million, was substantially below the value as of 31 December 2012, EUR 1,285.7 million.

Outlook

The Andritz Group expects a rise in sales in the 2013 business year compared to the previous year. However, due to the sharp earnings decline in the Pulp & Paper and Separation business areas, as well as scheduled amortisation of intangible assets related to the acquisition of Schuler and provisions in connection with structural improvement measures planned at Schuler, net income will be significantly lower than last year’s reference figure.

www.andritz.com