The Power Generation Division (VA Tech HYDRO) remained stable and again reported improved key figures. In Europe, development of combined cycle power plants profited from alternative investments (decommissioned power plants) and from a renewed demand for additional capacity. Hydropower as a renewable source of energy was able to maintain its leading position and also plays an important role in the climate protection goals of Kyoto. This led to an increase of the order intake amounting to almost 4% from EUR 1,011 m in 2002 to EUR 1,049 m in 2003 and for an EBIT improvement to EUR 58.1 m from EUR 56.5 m in 2003. Net liquidity and cash flow are also at a high level.

The Transmission and Distribution Division (VA Tech Transmission & Distribution) was characterized by a weakened international market and pressure on prices (especially in America and the Middle East), which is reflected in the decreased order intake (EUR 1.186 million after EUR 1,208 million) and a reduction in EBIT to EUR 15.8 million from EUR 50 million in 2002. The drop, especially in the transformer business, is due to the high competition and underuse of capacity at individual production sites. The EBIT includes goodwill amortization amounting to EUR 10 million as well as restructuring expenses of EUR 14 million. A productivity and result improvement program was launched and is already in the realization phase. This program also contains the market launch of new product technologies as well as the further improvement of business processes and cost structures.

The Infrastructure Division (VA Tech ELIN EBG, aii) also showed a satisfactory and stable development. Among others, the favorable development for industrial infrastructure services and the Eastern European countries, which are steadily gaining importance, led to a plus of 9 percent in order intake which amounted to EUR 808 million compared to EUR 742 m in the previous year. Around 13 % of order intake now comes from Central and Eastern Europe, 2% from the CIS states. In total the order intake from the new EU applicant countries increased by 30%. The operating result was EUR 29.3 million (2002: EUR 31.6 million).

The Water Technology Division (VA Tech WABAG) showed an increase in order intake of 12 percent as compared to the preceding year (EUR 251 m following EUR 225 m), but, as in 2002, presented a markedly negative EBIT amounting to minus EUR 42.4 m (2002: minus EUR 54.7 m). After termination of the negotiations on divestment and the decision for the Division to remain within the VA Tech Group, restructuring of this Division will continue under the auspices of VA Tech ELIN EBG and sub-areas will be sold. The strategy is to concentrate on the key markets in Eastern Europe, Iran, Near and Middle East, North Africa, China and Switzerland.