Andritz reports 5.6% year-over-year drop in Q3 net income to €58.5M on sales up 7.9% to €1.3B; Austrian company predicts negative impact on earnings if global economy deteriorates further in coming months

GRAZ, Austria , November 6, 2012 (press release) – International technology Group ANDRITZ showed solid business development during the third quarter of 2012 and the first three quarters of 2012:

• In the third quarter of 2012, sales amounted to 1,265.5 MEUR, which is an increase of 7.9% compared to last year’s reference figure (Q3 2011: 1,173.1 MEUR). With the exception of the SEPARATION business area, all business areas noted increases in sales. In the first three quarters of 2012, sales, at 3,703.3 MEUR, rose by 16.3% compared to the previous year’s reference period (Q1-Q3 2011: 3,184.2 MEUR).
• The order intake saw a very satisfactory development in the third quarter of 2012. At 1,238.8 MEUR, it was only slightly below the high level of last year’s reference period (Q3 2011: 1,254.1 MEUR), which included a large order in the amount of approximately 330 MEUR in the HYDRO business area. In the first three quarters of 2012, order intake amounted to 3,793.2 MEUR and was thus 22.6% below the extraordinarily high level of the previous year’s reference period (Q1-Q3 2011: 4,898.6 MEUR), which included two large orders in the PULP & PAPER business area amounting to around 1,100 MEUR in addition to the large order mentioned above (HYDRO: 330 MEUR).
• The order backlog as of September 30, 2012 amounted to 6,929.8 MEUR (+3.7% vs. December 31, 2011: 6,683.1 MEUR).
• EBITA amounted to 86.5 MEUR in the third quarter of 2012 and thus almost reached the previous year’s reference figure (-3.7 % vs. Q3 2011: 89.8 MEUR). The EBITA margin declined to 6.8% (Q3 2011: 7.7%). This decline is mainly attributable to the PULP & PAPER business area (execution of large orders) and the SEPARATION business area (cost overruns at some projects and investments in the expansion of business activities in the emerging markets). The EBITA in the first three quarters of 2012, at 242.1 MEUR, increased by 9.3% compared to the reference period of the previous year (Q1-Q3 2011: 221.4 MEUR). The EBITA margin amounted to 6.5% (Q1-Q3 2011: 7.0%).
• Net income (excluding non-controlling interests) increased to 167.2 MEUR during the first three quarters of 2012 (+11.1% vs. Q1-Q3 2011: 150.5 MEUR).
• The net worth position and capital structure as of September 30, 2012 remained solid. The total assets increased to 5,103.7 MEUR (December 31, 2011: 4,566.6 MEUR). This increase is attributable primarily to the successful issue of a corporate bond with a volume of 350 MEUR (tenor: seven years). Thus, the equity ratio declined to 19.4% (December 31, 2011: 20.6%). The net liquidity amounted to 1,286.4 MEUR (December 31, 2011: 1,400.6 MEUR).

Commenting on the outlook for the 2012 business year, President and CEO Wolfgang Leitner says: “Although there is perceptible caution in investment activity in the industries served by ANDRITZ due to the very difficult overall economic environment, the overall project activity is satisfactory. However, the visibility of upcoming projects and the award of orders have shortened significantly, particularly for large-scale investments.”

For the fully year of 2012, the ANDRITZ GROUP expects an increase in sales to approximately 5 billion EUR. The net income is also expected to rise compared to last year. However, if the global economy should deteriorate further in the coming months, this may have a negative impact on the Group’s earnings.

Click here for full financial report

* All content is copyrighted by Industry Intelligence, or the original respective author or source. You may not recirculate, redistrubte or publish the analysis and presentation included in the service without Industry Intelligence's prior written consent. Please review our terms of use.