EANS-News: ANDRITZ GROUP: Solid business development with record order intake

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Annual Result

Graz -
March 6, 2019. International technology group ANDRITZ saw solid business
development overall in the 2018 business year. At over 6.6 billion euros, the
order intake reached a historic high, thus creating a good order backlog for
2019. The Executive Board will propose an unchanged dividend - compared to last
year - of 1.55 euros per share to the Annual General Meeting. This is equal to
an attractive dividend yield of approximately 3.5% based on the current ANDRITZ
share price.

The results of the business year in detail:

* Due to the Group's strong organic growth, the order intake of 6,646.2 MEUR
reached a new record level and was thus significantly higher than the figure
for the previous year's reference period (+19.1% compared to 2017: 5,579.5
MEUR). All business areas were able to increase their order intake compared to
the previous year's reference period.

* The order backlog as of the end of 2018 was 7,084.3 MEUR, which is also
significantly higher than the value for the previous year's reference period
(+11.0% compared to the end of 2017: 6,383.0 MEUR).

* Sales amounted to 6,031.5 MEUR and were thus 2.4% higher than the level of the
previous year (2017: 5,889.1 MEUR). The Group's service business saw very
favorable development and accounted for 36% of total sales (2017: 34%).

* The development of earnings and profitability adjusted for extraordinary
effects remained practically stable compared to the previous year. The EBITA,
adjusted for provisions related to capacity restructuring measures in the
Hydro and Metals Forming areas, amounted to 415.0 MEUR and was thus only
slightly below the figure for the previous year's reference period after
adjustment for a positive extraordinary effect in the amount of around 25 MEUR
(2017: 420.4 MEUR); the adjusted EBITA margin was 6.9% compared to 7.1% in
2017.

Including extraordinary effects, the EBITA amounted to 394.3 MEUR (2017: 444.0
MEUR) and the EBITA margin was 6.5%, after 7.5% in 2017.

* Net income (without non-controlling interests) declined to 222.0 MEUR (2017:
263.0 MEUR).

Wolfgang Leitner, President & CEO of ANDRITZ AG: "In spite of the decline in
earnings, we are not dissatisfied with the past business year. The high organic
growth in order intake once again confirms our technological and market
leadership in the markets we serve. The companies we acquired in 2018 enable us
to continue strengthening our competitive position, particularly in the service
business. Also in 2019, we will continue to invest in the ANDRITZ GROUP's long-
term competitiveness.

For 2019, the ANDRITZ GROUP expects largely unchanged project and investment
activity in its four business areas compared to 2018. Due to the high order
backlog as of the end of 2018, ANDRITZ expects a substantial increase in sales
for the current business year as well as an increase in profitability compared
to 2018.

KEY FINANCIAL FIGURES AT A GLANCE

Unit 2018    2017    +/-       Q4 2018 Q4 2017 +/-
- Sales                   MEUR 6,031.5 5,889.1 +2.4%     1,830.7 1,745.5 +4.9%
Hydro                     MEUR 1,517.5 1,583.1 -4.1%     431.7   511.6   -15.6%
Pulp & Paper              MEUR 2,233.2 2,059.7 +8.4%     710.0   585.4   +21.3%
Metals                    MEUR 1,635.1 1,643.5 -0.5%     492.4   458.5   +7.4%
Separation                MEUR 645.7   602.8   +7.1%     196.6   190.0   +3.5%
- Order intake            MEUR 6,646.2 5,579.5 +19.1%    1,908.2 1,467.0 +30.1%
Hydro                     MEUR 1,445.8 1,317.2 +9.8%     389.6   378.2   +3.0%
Pulp & Paper              MEUR 2,571.9 2,033.4 +26.5%    845.5   481.4   +75.6%
Metals                    MEUR 1,931.8 1,606.5 +20.2%    528.5   462.9   +14.2%
Separation                MEUR 696.7   622.4   +11.9%    144.6   144.5   +0.1%
Order backlog (as of end  MEUR 7,084.3 6,383.0 +11.0%    7,084.3 6,383.0 +11.0%
of period)
EBITDA                    MEUR 498.0   541.7   -8.1%     176.8   166.5   +6.2%
EBITDA margin             %    8.3     9.2     -         9.7     9.5     -
EBITA
(adjusted for             MEUR 415.0   420.4   -1.3%     162.8   137.8   +18.1%
extraordinary effects)
EBITA margin
(adjusted for             %    6.9     7.1     -         8.9     7.9     -
extraordinary effects)
EBITA                     MEUR 394.3   444.0   -11.2%    142.1   137.8   +3.1%
EBITA margin              %    6.5     7.5     -         7.8     7.9     -
EBIT                      MEUR 321.6   399.3   -19.5%    92.3    123.4   -25.2%
Financial result          MEUR -17.4   1.3     -1,438.5% -11.6   2.1     -652.4%
EBT                       MEUR 304.2   400.6   -24.1%    80.7    125.5   -35.7%
Net income
(without non-controlling  MEUR 222.0   263.0   -15.6%    65.0    73.2    -11.2%
interests)
Cash flow                 MEUR 7.8     246.5   -96.8%    92.8    117.3   -20.9%
from operating activities
Capital expenditure       MEUR 137.0   116.8   +17.3%    67.7    35.3    +91.8%
Employees
(as of end of period;     -    29,096  25,566  +13.8%    29,096  25,566  +13.8%
without apprentices)

All figures according to IFRS. Due to the utilization of automatic calculation
programs, differences can arise in the addition of rounded totals and
percentages. MEUR = million euros. EUR = euros.

- End -

PRESS RELEASE AVAILABLE FOR DOWNLOAD
This press release is available for download at andritz.com/news [http://
www.andritz.com/news] on the ANDRITZ web site.

ANDRITZ GROUP
ANDRITZ is an international technology group providing plants, systems,
equipment, and services for various industries. The company is one of the
technology and global market leaders in the hydropower business, the pulp and
paper industry, the metal working and steel industries, and in solid/liquid
separation in the municipal and industrial segments. Other important fields of
business are animal feed and biomass pelleting, as well as automation, where
ANDRITZ offers a wide range of innovative products and services in the IIoT
(Industrial Internet of Things) sector under the brand name of Metris. In
addition, the company is active in power generation (steam boiler plants,
biomass power plants, recovery boilers, and gasification plants) and
environmental technology (flue gas and exhaust gas cleaning plants) and offers
equipment for the production of nonwovens, dissolving pulp, and panelboard, as
well as recycling plants.

A passion for innovative technology, absolute customer focus, partnership,
reliability, and integrity are core values to which ANDRITZ is committed. The
listed Group is headquartered in Graz, Austria. With almost 170 years of
experience, 29,000 employees, and more than 280 locations in over 40 countries
worldwide, ANDRITZ is a reliable and competent partner and helps its customers
to achieve their corporate and sustainability goals.

Annual and financial reports
Annual and Financial reports are available for download at the ANDRITZ web site
andritz.com [http://www.andritz.com/], and printed editions can be requested
free of charge by e-mail to [email protected] [[email protected]].

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

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

end of announcement euro adhoc
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issuer: 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: ATX, WBI
stockmarkets: Wien
language: English

ORIGINAL APA-OTS TEXT - THE INFORMATION CONTAINED IN THIS PRESS RELEASE IS SUBJECT TO THE EXCLUSIVE RESPONSIBILITY OF THE ISSUER | CNE

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