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ANDRITZ GROUP : Results for the first quarter of 2018

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ANDRITZ saw mixed business development in the first quarter of 2018. While the order intake of over 1.5 billion euros was very favorable and almost reached the very high level of last year’s reference period, sales and earnings were significantly lower than the reference figures for the previous year.
The key financial figures developed as follows :

  • Order intake at 1,532.8 million euros (MEUR) reached a very favorable level and was thus only slightly below the high level of the previous year’s reference period (-1.7% versus Q1 2017 : 1,560.0 MEUR). The Hydro, Metals, and Separation business areas saw very positive development and were able to achieve – partially significant – increases in order intake compared to the previous year.
  •  Sales decreased to 1,291.0 MEUR and were thus 6.9% below the level of the previous year’s reference period (Q1 2017 : 1,386.2 MEUR). This is largely due to a decline in sales in Pulp & Paper (a large pulp mill project still had a significant impact on sales in the previous year’s reference period) and Metals (decline in sales due to the low order intake in the second and third quarter of last year). However, as a result of the Group’s increasing order intake since the second quarter of 2017 (Q2 2017 : 1,211.3 MEUR, Q3 2017 : 1,341.2 MEUR ; Q4 2017 : 1,467.0 MEUR ; Q1 2018 : 1,532.8 MEUR), sales in the coming months should, from today’s perspective, make up for the lower sales figure in the first quarter.
  •  The order backlog as of March 31, 2018, amounted to 6,553.2 MEUR and has thus increased slightly compared to the end of 2017 (December 31, 2017 : 6,383.0 MEUR).
  •  The EBITA amounted to 71.7 MEUR (-26.4% compared to Q1 2017 : 97.4 MEUR) and was thus significantly lower than the figure for the previous year’s reference period. The main reason for this is, above all, the lower sales figure. Furthermore, cost overruns on individual projects in the Metals business area had an impact on earnings. As a result, the Group’s profitability (EBITA margin) declined to 5.6% (Q1 2017 : 7.0%).
  •  Net income (without non-controlling interests) dropped to 44.0 MEUR (Q1 2017 : 63.0 MEUR).

OUTLOOK
In spite of the decline in sales and earnings during the reporting period, ANDRITZ expects unchanged an overall satisfactory business development from today’s perspective for the 2018 business year. In the coming months, the rising order intake since the second quarter of 2017 is expected to make up for the lower sales in the present reporting period and the related lower earnings.
Wolfgang Leitner, President and CEO of ANDRITZ AG : “In spite of the moderate development of sales and earnings in the first quarter, we expect solid business development for the 2018 business year as a whole. The development of order intake in the past few quarters as well as the good project and investment activities overall in the markets we serve give us good grounds for optimism.”

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