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ANDRITZ Expects 2014 to Be Similar to Disappointing 2013
02/04/2014 - As it reported its 2013 results, ANDRITZ said it was a disappointing business year but noted positive developments in its metals business.
International technology Group ANDRITZ looks back on a disappointing 2013 business year. Although the Hydro and Metals (including Schuler) business areas saw very positive development, the results of the Pulp & Paper and Separation business areas were unsatisfactory. Together with expected expenses and provisions for the structural improvement program at Schuler, this resulted in a substantial decline in the ANDRITZ GROUP’s earnings and profitability in 2013 compared to the preceding year. The main financial developments in detail:
On the basis of these expectations, the order backlog, and the sales contribution by acquisitions not included in the full twelve-month period in 2013, the ANDRITZ GROUP expects a slight rise in sales in 2014 com-pared to the previous year. The net income of the Group is currently expected to see a significant improvement in 2014 compared to the low earnings in 2013.
The ANDRITZ GROUP is a global supplier of plants, equipment, and services for hydropower stations, the pulp and paper industry, the metalworking and steel industries, and solid/liquid separation in the municipal and industrial sectors. In addition, ANDRITZ offers technologies for certain other sectors including automation, the production of animal feed and biomass pellets, pumps, machinery for nonwovens and plastic films, steam boiler plants, biomass boilers and gasification plants for energy generation, flue gas cleaning plants, plants for the production of panelboards (MDF), thermal sludge utilization, and biomass torrefaction plants. The publicly listed, international technology Group is headquartered in Graz, Austria, and has a staff of around 23,700 employees. ANDRITZ operates over 220 production sites as well as service and sales companies all around the world.
- Sales of the ANDRITZ GROUP amounted to € 5,710.8 million and were thus 10.3% higher than the reference figure for the previous year (2012: € 5,176.9 million). This increase is due to consolidation of the Schuler Group, which has contributed € 966.6 million in sales since its first-time consolidation as of 1 March 2013.
- The order intake rose by 13.9% compared to the previous year, reaching € 5,611.0 million (2012: € 4,924.4 million), with the Schuler Group contributing € 868.4 million. The order intake of all four business areas reached a satisfactory level.
- The order backlog amounted to € 7,388.5 million as of 31 December 2013, an increase of 11.7% com-pared to the end of last year (31 December 2012: € 6,614.8 million). The Schuler Group contributed € 1,040.4 million to the Group’s order backlog.
- Earnings (EBITA) amounted to € 164.1 million and were thus 54.1% below the reference figure for the previous year (2012: € 357.8 million). Profitability (EBITA margin) declined to 2.9% (2012: 6.9%). The main reasons for this substantial decline are high expenses and provisions in the Pulp & Paper business area for cost overruns in connection with supplies to a pulp mill in South America as well as planned exceptional expenses and provisions for the structural improvement program at Schuler. Furthermore, additional costs for the market launch of a new product series in China as well as the moderate investment activity in the mining and chemical industries led to a considerable decline in earnings in the SEPARATION business area.
- Net income without non-controlling interests amounted to € 66.6 million (-72.6% vs. 2012: 242.7 million).
- Due to consolidation of the Schuler Group, total assets of the ANDRITZ GROUP increased to € 5,571.4 million (year-end 2012: € 5,161.0 million). Due to the acquisition of Schuler, the net liquidity, at € 893.1 million, declined significantly compared to the reference figure as of the end of 2012 (€ 1,285.7 million).
- In line with the earnings development, the Executive Board will propose a decrease in dividend to € 0.50 per share for the 2013 business year (2012: € 1.20) at the Annual General Meeting on March 21, 2014, corresponding to a payout ratio of approximately 78% (2012: approximately 51%).
On the basis of these expectations, the order backlog, and the sales contribution by acquisitions not included in the full twelve-month period in 2013, the ANDRITZ GROUP expects a slight rise in sales in 2014 com-pared to the previous year. The net income of the Group is currently expected to see a significant improvement in 2014 compared to the low earnings in 2013.
The ANDRITZ GROUP is a global supplier of plants, equipment, and services for hydropower stations, the pulp and paper industry, the metalworking and steel industries, and solid/liquid separation in the municipal and industrial sectors. In addition, ANDRITZ offers technologies for certain other sectors including automation, the production of animal feed and biomass pellets, pumps, machinery for nonwovens and plastic films, steam boiler plants, biomass boilers and gasification plants for energy generation, flue gas cleaning plants, plants for the production of panelboards (MDF), thermal sludge utilization, and biomass torrefaction plants. The publicly listed, international technology Group is headquartered in Graz, Austria, and has a staff of around 23,700 employees. ANDRITZ operates over 220 production sites as well as service and sales companies all around the world.
