Andritz Group: Results for the third quarter of 2017

The key financial figures developed according to Andritz as follows:

Order intake in the third quarter of 2017 amounted to 1,341.2 MEUR, decreasing by 8.8% compared to the previous year’s reference period (Q3 2016: 1,470.1 MEUR). This decline is attributable primarily to the HYDRO and the METALS business areas, whose order intake decreased by 9.5% and 19.8%, respectively, compared to the previous year’s reference period. In the first three quarters of 2017, the Group’s order intake at 4,112.5 MEUR was slightly higher than the level of the previous year’s reference period (+1.9% versus Q1-Q3 2016: 4,036.5 MEUR). This increase is particularly attributable to the Pulp & Paper business area, which achieved increases in both capital and service business. The Separation business area also saw favorable development in the reporting period and was able to continue the rising trend in order intake that began in the previous quarters.

The order backlog as of September 30, 2017, amounted to 6,650.8 MEUR and was thus down slightly compared to the figure at the end of 2016 (-2.0% compared to December 31, 2016: 6,789.2 MEUR).

In the third quarter of 2017, sales decreased by 7.7% compared to the previous year’s reference period, reaching 1,364.6 MEUR (Q3 2016: 1,478.1 MEUR), with all four business areas showing a decline. The Pulp & Paper business area, in particular, saw a significant decline in sales compared to the previous year’s reference period, which had very high sales due to processing of a large order. Group sales in the first three quarters of 2017 amounted to 4,143.6 MEUR, decreasing slightly compared to the previous year’s reference figure (-2.3% compared to Q1-Q3 2016: 4,239.3 MEUR).

The EBITA also decreased – as Andritz quotes – at practically the same rate as sales; at 98.9 MEUR it was 9.3% below the figure for last year’s reference period (Q3 2016: 109.1 MEUR). Profitability (EBITA margin) declined slightly to 7.2% (Q3 2016: 7.4%). The EBITA amounted to 306.2 MEUR in the first three quarters of 2017 and thus increased compared to the previous year’s reference period (+4.8% compared to Q1-Q3 2016: 292.1 MEUR). Profitability increased to 7.4% (Q1-Q3 2016: 6.9%), although it is important to note that the second quarter of 2017 – as already disclosed – was impacted positively by an extraordinary effect mainly from sale of the Schuler Technical Center in Tianjin, China. Excluding this extraordinary effect, the Group’s EBITA would have been 283.3 MEUR and the profitability 6.8%.

The net income (without non-controlling interests) decreased to 189.8 MEUR (Q1-Q3 2016: 194.2 MEUR) in the first three quarters of 2017.

Wolfgang Leitner, President & CEO of Andritz AG: “For the coming months, we do not anticipate any major changes in the markets we serve. In Pulp & Paper, we expect unchanged good project and investment activity and also assume that the positive development in the Separation business area will continue. The Group’s service business, which currently accounts for around one third of sales, is also expected to continue its positive development.”

Andritz continues to expect a slight decline in Group sales for the 2017 business year compared to 2016, but also expects profitability (EBITA margin) to achieve the solid level of the previous year in spite of the decline in sales.