International technology group Andritz, a leading supplier of plants and services for the nonwovens , pulp and paper  and other specialised industries, showed a solid order intake and a favourable sales development during the second quarter and the first half of 2013.

Andritz President and CEO Wolfgang Leitner explained : “In view of the very difficult overall economic environment, we must be satisfied with the business development of the Andritz Group. For the remaining months of the 2013 business year, we expect investment activity in our key customer industries to remain subdued worldwide.”

The group expects a rise in sales in the 2013 business  year. However, due to the sharp earnings decline in the pulp and paper, and separation business areas, as well as scheduled amortisation of intangible assets related to the acquisition of Schuler, the net income will be significantly lower than the last year’s reference figure.

Sales

In the second quarter of 2013, sales of the Andritz Group amounted to 1,446.3 million EUR, which is an increase of 15.5% compared to last year’s reference period. This was due to the consolidation of the Schuler Group. In the first half of 2013, sales of the Group reached 2,610.1 million EUR, an increase by 77.1% compared to the previous year.

Order intake reached a solid level of 1,237.7 million EUR in the second quarter of 2013, showing an increase of 33.7%. In the first half of 2013, the order intake of 2,526 million EUR was slightly below the previous year’s reference figure.

As of June 30, 2013 the order backlog, at 7,644.4 million EUR, rose by 15.6% compared to the end of last year, due to consolidation of Schuler.

Earnings

Earnings (EBITA) of the Group amounted to 82.7 million EUR in the second quarter of 2013, practically unchanged compared to last year’s reference period. Profitability (EBITAA margin) amounted to 5 .7%, showing a decline over the second quarter last year, due to decreasing earnings in the pulp and paper business area and the separation business area. Earnings of the other business areas saw satisfactory development.

In the first half off 2013, the Group’s EBITTA amounted to 96.9 million EUR, falling by 37.7% compared to the first half of 2012. The Group’s EBIT in the first half of 2013 amounted to 65.9 million EUR, declining by more than a half. This is due to the scheduled amortisation of intangible assets according to IFRS in connection with the acquisition of Schuler.

Net income amounted to 46.9 million EUR and was significantly below the reference figure of 108.7 million EUR for the previous year. The net worth position and capital structure as of 30 June 2013 remained solid. Net liquidity amounted to 817.7 million EUR and thus reached a good level despite the acquisition of Schuler (almost 600 million EUR) .

www.andritz.com