Andritz AG — Earnings Release 2009

May 7, 2009

keywords: Financial Figures/Balance Sheet/quarterly report

EANS-Adhoc: ANDRITZ: results for the first quarter of 2009

• Increase in sales, slight decrease in earnings
• Order intake below the previous year´s high value
• Good order backlog at approx. 4.5 billion Euros
• Unchanged good net liquidity at approx. 458 MEUR

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07.05.2009

Graz, May 7, 2009. International technology Group ANDRITZ increased its sales during the first quarter of 2009 in comparison with last year´s reference period, but in the face of the difficult economic environment, earnings were down slightly, especially in the PULP & PAPER business area. Order intake was lower than the previous year´s high reference value. The Group´s order backlog, at approx. 4.5 billion Euros as of March 31, 2009, was solid and further increased compared to the value as of end of December 2008. The ANDRITZ GROUP continues to expect its sales to decline by about 15% in the full year 2009 and its net income also to decrease versus the financial year 2008.

Sales increase

The ANDRITZ GROUP´S sales during the first quarter of 2009 amounted to 790.1 MEUR, an increase of 5.2% compared to the reference quarter of last year (Q1 2008: 750.9 MEUR). The HYDRO, METALS, and ENVIRONMENT & PROCESS business areas achieved increases in their sales compared to the previous year. Sales of the PULP & PAPER business area declined compared to last year´s reference period, in particular due to the weak capital and modernization business as a result of the global economic weakness.

Order intake below the previous year´s high value, good order backlog In the face of the global financial and economic crisis, order intake during the first quarter of 2009, at 981.4 MEUR, was solid, however 17.9% below the very high level of the reference period of last year (Q1 2008: 1,195.7 MEUR). While the order intake of PULP & PAPER and METALS was on the decline, the HYDRO business area achieved a significant increase of its order intake compared to the reference quarter of last year.

Order backlog as of March 31, 2009, amounted to 4,464.0 MEUR, an increase of 4.4% compared to the value as of December 31, 2008. This was in particular due to the favorable development of the HYDRO business area.

Earnings below the last year´s reference values

The ANDRITZ GROUP´S EBITA during the first quarter of 2009 amounted to 43.7 MEUR, a slight decrease of 4.0% compared to the reference quarter of last year (Q1 2008: 45.5 MEUR). As a consequence, the GROUP´S EBITA margin decreased to 5.5% (Q1 2008: 6.1%). This was mainly due to the significant decline in earnings of the PULP & PAPER business area, resulting from lower sales and lower capacity utilization, especially in the capital investment business. However, the HYDRO and the ENVIRONMENT & PROCESS business areas´ earnings increased in comparison to the first quarter of 2008.

The financial result declined to -4.2 MEUR (Q1 2008: -0.5 MEUR). This was mainly due to mark-to-market adjustments for money market funds in connection with the global financial crisis.

Net income excluding minority interests amounted to 25.7 MEUR in the first quarter of 2009, thus decreasing by 14.9% compared to last year´s reference value (Q1 2008: 30.2 MEUR).

Solid balance sheet structure with high net liquidity Total assets as of March 31, 2009, increased to 3,166.0 MEUR (December 31, 2008: 3,086.3 MEUR); the equity ratio amounted to 17.6% (December 31, 2008: 18.7%).

Liquid funds (Cash and cash equivalents plus Marketable securities) amounted to 876.8 MEUR as of March 31, 2009 (December 31, 2008: 821.8 MEUR). The net liquidity (Liquid funds plus Fair value of interest rate swaps minus Financial liabilities) increased to 457.8 MEUR and was thus significantly higher than at the end of last year (December 31, 2008: 408.9 MEUR).

Outlook for the ANDRITZ GROUP

ANDRITZ confirms its sales and earnings guidance for the financial year 2009 published with the financial figures for 2008 and expects sales to decline by approx. 15% and the net income to decrease in comparison to 2008. ´The difficult overall economic environment hasn´t changed during the past few months. The likelihood of project realizations and therefore the development of the order intake are very difficult to assess, especially in the PULP & PAPER und METALS business areas. For the HYDRO business area, we expect the good development to continue´, says Wolfgang Leitner, President & CEO of ANDRITZ AG, and adds: ´Already in 2008, we started to adapt our capacities in some areas, and therefore, from today´s point of view, we are well equipped for this difficult environment.´

• End -

Key figures of the ANDRITZ GROUP at a glance

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(According to IFRS)	Unit	Q1 2009	Q1 2008*	+/-	2008
Sales	MEUR	790.1	750.9	+5.2%	3,609.8
HYDRO	MEUR	316.6	217.6	+45.5%	1,205.9
PULP & PAPER	MEUR	233.7	319.1	-26.8%	1,326.6
METALS	MEUR	135.0	113.2	+19.3%	566.2
ENVIRONMENT & PROCESS	MEUR	70.8	66.3	+6.8%	366.6
FEED & BIOFUEL	MEUR	34.0	34.7	-2.0%	144.5
Order intake	MEUR	981.4	1,195.7	-17.9%	3,705.3
HYDRO	MEUR	574.2	392.2	+46.4%	1,543.4
PULP & PAPER	MEUR	164.7	417.3	-60.5%	1,033.8
METALS	MEUR	123.6	244.5	-49.4%	611.5
ENVIRONMENT & PROCESS	MEUR	84.3	99.0	-14.8%	361.2
FEED & BIOFUEL	MEUR	34.6	42.7	-19.0%	155.4
Order backlog
as of end of period	MEUR	4,464.0	4,321.4	+3.3%	4,277.4
EBITDA	MEUR	56.2	56.6	-0.7%	278.2
EBITDA margin	%	7.1	7.5	-	7.7
EBITA	MEUR	43.7	45.5	-4.0%	233.2
EBITA margin	%	5.5	6.1	-	6.5
Operating result (EBIT)	MEUR	41.6	44.0	-5.5%	218.5
Financial result	MEUR	-4.2	-0.5	-	-8.1
Earnings Before Taxes (EBT)	MEUR	37.4	43.5	-14.0%	210.5
Net income (after minorities)	MEUR	25.7	30.2	-14.9%	139.7
Cash flow from
operating activities	MEUR	55.0	82.7	-33.5%	255.0
Investments in fixed tangible
and intangible assets	MEUR	22.9	13.9	+64.7%	69.7

Employees

*restated

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The interim financial report for the first quarter of 2009 as well as the annual and financial reports of the ANDRITZ GROUP are available on the ANDRITZ website at www.andritz.com as an online and pdf version. Printed copies can be requested by telephone (+43.316.6902.2722), fax (+43.316.6902-465), or e-mail (investors@andritz.com).

The ANDRITZ GROUP

The ANDRITZ GROUP is a global market leader for customized plants, process technologies, and services for the hydropower, pulp and paper, metals, and other industries (solid/liquid separation, feed and biofuel). The Group is headquartered in Graz, Austria and has a staff of 13,600 employees worldwide. ANDRITZ operates over 150 production sites, service, and sales companies all around the world.

DISCLAIMER

Certain statements contained in this press release constitute forward-looking statements.´ These statements, which contain the wordsbelieve´, 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 Treasury, Corporate Communications & Investor Relations Tel.: +43 316 6902 2979 Fax: +43 316 6902 465 mailto:michael.buchbauer@andritz.com

emitter:	Andritz AG
	Stattegger Straße 18
	A-8045 Graz
phone:	+43 (0)316 6902-0
FAX:	+43 (0)316 6902-415
mail:	welcome@andritz.com
WWW:	www.andritz.com
sector:	Machine Manufacturing
ISIN:	AT0000730007
indexes:	WBI, ATX Prime, ATX
	stockmarkets: official dealing: Wiener Börse AG
language:	English