International technology Group Andritz showed solid business development in the first half of 2014. Sales increased slightly to 2,659.4 MEUR in the first half of 2014.

“Given the overall economic situation and the competitive environment, order intake and sales of the Andritz Group saw solid development,” commented Wolfgang Leitner, Andritz President and CEO.

“We achieved a significant improvement in earnings compared to the previous year’s reference period, although further improvements are necessary to reach our target figures. We expect unchanged project activity in the markets we serve for the current second half of the year.”

Increase in sales

The increase in sales is attributable to the Schuler Group, which only contributed four months to the previous year’s reference period. Sales in the second quarter of 2014, at 1,439.9 MEUR, almost reached the reference figure of last year.

The order intake amounted to 2,980.2 MEUR in the first half of 2014 and was thus well above the previous year’s reference figure, an 18% increase compared with the first half 2013.

This significant increase is mainly due to the good order intake in the Pulp and Paper and Metals business areas in the first quarter of 2014. The order intake in the second quarter of 2014, at 1,238 MEUR, was practically unchanged compared to the level in the second quarter of 2013.

Figures

As of 30 June 2014, the order backlog amounted to 7,555.7 MEUR which is an increase of 2.3% compared to the end of last year. In the first half of 2014, the EBITA amounted to 133.4 MEUR, constituting a 37.7% increase compared with last year. The EBITA margin was 5%. Thus, earnings were significantly above the low reference figure for the previous year, which was strongly negatively impacted in the first quarter of 2013 by high provisions booked for a pulp mill project in South America.

In the second quarter of 2014, the EBITA amounted to 84.8 MEUR and was thus 2.5% above the figure for the second quarter of 2013 (82.7 MEUR). The EBITA margin slightly increased to 5.9%.

The net income reached 66.7 MEUR in the first half of 2014 and was thus well above the very low reference figure for the previous year, resulting in a 42.2% growth.

Outlook

Based on the business development so far, the order backlog, and – compared to 2013 – additional two months sales contribution by the Schuler Group, the company expects a slight rise in sales in the 2014 business year compared to the previous year.

Net income is expected to show a significant improvement compared to the low level of 2013.

www.andritz.com