euro adhoc: Andritz AG / quarterly or semiannual financial statement / Andritz Group: Results for the First Three Quarters of 2006

- Continued strong organic growth and first-time consolidation of VA TECH HYDRO
lead to significant increases in Order Intake, and Sales
- Order Backlog, at over 3.5 billion Euros, significantly increased
- Financial guidance for 2006 confirmed (E)=

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Disclosure announcement transmitted by euro adhoc. The issuer is responsible
for the content of this announcement.
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07.11.2006

Graz, November 7, 2006. Technology Group Andritz reports a very favorable
business development for the First Three Quarters of 2006. Due to continued
strong organic growth and the first-time consolidation of VA TECH HYDRO from Q3
2006, Group Sales increased to 1,702.6 MEUR, up 41.4% compared to the reference
period of last year (Q1-Q3 2005: 1,204.0 MEUR). Net Income excluding minority
interests, at 68.2 MEUR, was also significantly up compared to last year’s
reference period (Q1-Q3 2005: 56.2 MEUR). Order Intake also developed very
favorably; at 2,062.9 MEUR, it was 47.3% higher than during the reference period
of last year (Q1-Q3 2005: 1,400.2 MEUR). Order Backlog, at 3,561.9 MEUR,
reached a new record level, thus giving a good visibility with regard to Sales
for the coming Quarters.

For the full year of 2006, the Managing Board of Andritz confirms its financial
guidance and expects Sales and Net Income to reach record levels.

Favorable development of Sales
Sales in the Third Quarter of 2006 amounted to 735.2 MEUR, increasing 72.4%
compared to the reference period of last year (Q3 2005: 426.5 MEUR). This
increase is mainly due to continued strong organic growth and the first-time
consolidation of VA TECH HYDRO, which was included in the Group’s profit and
loss account from Q3 2006. VA TECH HYDRO added 160.8 MEUR to Group Sales in Q3
2006. Organic growth of the Group was 29.4% during the Third Quarter of 2006,
with all Business Areas contributing to this growth.

During the First Three Quarters of 2006, Sales of the Andritz Group increased by
41.4%, to 1,702.6 MEUR (Q1-Q3 2005: 1,204.0 MEUR).

Order Intake significantly above last year’s reference period
Order Intake in the Third Quarter of 2006 also developed very favorably,
reaching 785.8 MEUR (+54.1% vs. Q3 2005: 509.9 MEUR). All Business Areas - in
particular Pulp and Paper, Feed and Biofuel, and Hydro Power - showed a solid
development of Order Intake. Order Intake of the Hydro Power Business Area,
reaching 183.7 MEUR in Q3 2006, was influenced by the first-time consolidation
of VA TECH HYDRO, adding approximately 150.1 MEUR to Order Intake during Q3
2006.

Order Intake for the First Three Quarters of 2006 was 2,062.9 MEUR, increasing
47.3% compared to the reference period of last year (Q1-Q3 2005: 1,400.2 MEUR).

Order Backlog at record level
Order Backlog as of 30.9.2006 surged to 3,561.9 MEUR, reaching a new record
level (30.9.2005: 1,667.8 MEUR). VA TECH HYDRO added 1,447.9 MEUR to the
Group’s Order Backlog.

Strong increase in Earnings
In line with higher Sales, Earnings before Interest and Taxes (EBIT) increased
to 42.0 MEUR during the Third Quarter of 2006 (Q3 2005: 27.6 MEUR). As
expected, profitability (EBIT margin), at 5.7% for the Third Quarter of 2006,
however, weakened compared to Q3 2005 (6.5%). This was due to the first-time
consolidation of VA TECH HYDRO.

EBIT for the First Three Quarters of 2006 amounted to 99.7 MEUR, an increase of
37.0% compared to the reference period of last year (Q1-Q3 2005: 72.8 MEUR).
Despite the consolidation of VA TECH HYDRO, profitability (EBIT margin), at
5.9%, remained nearly stable compared to the reference period of last year
(Q1-Q3 2005: 6.0%). Net Income after deduction of Minority Interests amounted
to 68.2 MEUR, increasing 21.4% compared to the reference period of last year
(Q1-Q3 2005: 56.2 MEUR).

Outlook
Based on the financial results for the First Three Quarters of 2006, the Andritz
Group expects to reach new record results for the full year of 2006. The
Managing Board confirms the financial guidance for 2006 and expects Group Sales
to increase by approximately 40%, to approximately 2.5 billon Euros, and also
Net Income to be significantly higher.

For 2007, Wolfgang Leitner, President and CEO of Andritz, is also very
confident: "The economic environment for our relevant industries remains
favorable. Due to the high Order Backlog and the full consolidation of VA TECH
HYDRO we expect Group Sales in 2007 to approach 3 billion Euros and a further
increase in Net Income."

Disclaimer
Certain statements contained in this press release constitute "forward-looking
statements". These statements, which contain the words "believe", "intend",
"expect" and words of similar meaning, reflect management’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.

Key Figures for the First Three Quarters of 2006

(in MEUR)        Q1-Q3 2005   Q1-Q32006    Change   Q3 2005   Q3 2006    Change
Sales               1,204.0     1,702.6    +41.4%     426.5     735.2    +72.4%
Order Intake        1,400.2     2,062.9    +47.3%     509.9     785.8    +54.1%
Order Backlog (as
of end of period)   1,667.8     3,561.9   +113.6%   1,667.8   3,561.9   +113.6%
EBITDA 1)              90.4       122.7    +35.7%      33.7      52.5    +55.8%
EBITDA Margin          7.5%        7.2%      -         7.9%      7.1%       -
EBITA 2)               72.8        99.7    +37.0%      27.6      42.0    +52.2%
EBITA Margin           6.0%        5.9%      -         6.5%      5.7%       -
EBIT                   72.8        99.7    +37.0%      27.6      42.0    +52.2%
EBIT Margin            6.0%        5.9%      -         6.5%       5.7%      -
Earnings before 
Taxes                  74.4       101.4    +36.3%      28.2       41.5   +47.2%
Net Income excl. 
Minority Interests     56.2        68.2    +21.4%      23.9       28.2   +18.0%
Cash flow from  
Operating Activities  107.3       -35.6   -133.2%      68.8       52.4   -23.8%
Capital Expenditure 3) 18.0        27.2    +51.1%       8.2       14.1   +72.0%
Employees 
(as of end of period) 5,905      10,010    +69.5%     5,905     10,010   +69.5%

1) EBITDA: Earnings before Interest, Taxes, Depreciation, and Amortization of
Goodwill
2) EBITA: Earnings before Interest, Taxes, and Amortization of Goodwill
3) Additions to tangible and intangible assets

The Letter to Shareholders for the First Three Quarters of 2006 is available on
the Andritz web site (www.andritz.com) both as an online and a PDF version.
Printed versions can be requested by telephone (+43 316 6902 2722), fax (+43 316
6902 465) or e-mail ([email protected]).

The Andritz Group
The Andritz Group - listed on the Vienna Stock Exchange - is a global market
leader for advanced production systems for pulp and paper, steel and other
specialized industries. Andritz has a staff of approximately 10,000 employees
worldwide. It develops and makes its high-tech systems at 35 production sites
(Austria, Germany, Finland, Denmark, France, Netherlands, USA, Canada, and
China).

Further inquiry note:
Dr. Michael Buchbauer
Head of Investor Relations
Tel.: +43 316 6902 2979
Fax: +43 316 6902 465
mailto:[email protected]

end of announcement euro adhoc 07.11.2006 07:30:00
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emitter: Andritz AG
Stattegger Straße 18
A-8045 Graz
phone: +43 (0)316 6902-0
FAX: +43 (0)316 6902-415
mail: [email protected]
WWW: www.andritz.com
ISIN: AT0000730007
indexes: WBI, ATX Prime, ATX
stockmarkets: official dealing: Wiener Börse AG
sector: Machine Manufacturing
language: English

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