euro adhoc: Andritz AG / quarterly or semiannual financial statement / Andritz Group: Results for the First Three Quarters of 2006 - Continued strong organic growth and first-time consolidation of VA

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Disclosure announcement transmitted by euro adhoc. The issuer is responsible
for the content of this announcement.
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07.11.2006

Graz, November 7, 2006. Technology Group Andritz reports a very
favorable business development for the First Three Quarters of 2006.
Due to continued strong organic growth and the first-time
consolidation of VA TECH HYDRO from Q3 2006, Group Sales increased to
1,702.6 MEUR, up 41.4% compared to the reference period of last year
(Q1-Q3 2005: 1,204.0 MEUR). Net Income excluding minority interests,
at 68.2 MEUR, was also significantly up compared to last year’s
reference period (Q1-Q3 2005: 56.2 MEUR). Order Intake also
developed very favorably; at 2,062.9 MEUR, it was 47.3% higher than
during the reference period of last year (Q1-Q3 2005: 1,400.2 MEUR).
Order Backlog, at 3,561.9 MEUR, reached a new record level, thus
giving a good visibility with regard to Sales for the coming
Quarters.

For the full year of 2006, the Managing Board of Andritz confirms its
financial guidance and expects Sales and Net Income to reach record
levels.

Favorable development of Sales Sales in the Third Quarter of 2006
amounted to 735.2 MEUR, increasing 72.4% compared to the reference
period of last year (Q3 2005: 426.5 MEUR). This increase is mainly
due to continued strong organic growth and the first-time
consolidation of VA TECH HYDRO, which was included in the Group’s
profit and loss account from Q3 2006. VA TECH HYDRO added 160.8 MEUR
to Group Sales in Q3 2006. Organic growth of the Group was 29.4%
during the Third Quarter of 2006, with all Business Areas
contributing to this growth.

During the First Three Quarters of 2006, Sales of the Andritz Group
increased by 41.4%, to 1,702.6 MEUR (Q1-Q3 2005: 1,204.0 MEUR).

Order Intake significantly above last year’s reference period Order
Intake in the Third Quarter of 2006 also developed very favorably,
reaching 785.8 MEUR (+54.1% vs. Q3 2005: 509.9 MEUR). All Business
Areas - in particular Pulp and Paper, Feed and Biofuel, and Hydro
Power - showed a solid development of Order Intake. Order Intake of
the Hydro Power Business Area, reaching 183.7 MEUR in Q3 2006, was
influenced by the first-time consolidation of VA TECH HYDRO, adding
approximately 150.1 MEUR to Order Intake during Q3 2006.

Order Intake for the First Three Quarters of 2006 was 2,062.9 MEUR,
increasing 47.3% compared to the reference period of last year (Q1-Q3
2005: 1,400.2 MEUR).

Order Backlog at record level Order Backlog as of 30.9.2006 surged to
3,561.9 MEUR, reaching a new record level (30.9.2005: 1,667.8 MEUR).
VA TECH HYDRO added 1,447.9 MEUR to the Group’s Order Backlog.

Strong increase in Earnings In line with higher Sales, Earnings
before Interest and Taxes (EBIT) increased to 42.0 MEUR during the
Third Quarter of 2006 (Q3 2005: 27.6 MEUR). As expected,
profitability (EBIT margin), at 5.7% for the Third Quarter of 2006,
however, weakened compared to Q3 2005 (6.5%). This was due to the
first-time consolidation of VA TECH HYDRO.

EBIT for the First Three Quarters of 2006 amounted to 99.7 MEUR, an
increase of 37.0% compared to the reference period of last year
(Q1-Q3 2005: 72.8 MEUR). Despite the consolidation of VA TECH HYDRO,
profitability (EBIT margin), at 5.9%, remained nearly stable compared
to the reference period of last year (Q1-Q3 2005: 6.0%). Net Income
after deduction of Minority Interests amounted to 68.2 MEUR,
increasing 21.4% compared to the reference period of last year (Q1-Q3
2005: 56.2 MEUR).

Outlook Based on the financial results for the First Three Quarters
of 2006, the Andritz Group expects to reach new record results for
the full year of 2006. The Managing Board confirms the financial
guidance for 2006 and expects Group Sales to increase by
approximately 40%, to approximately 2.5 billon Euros, and also Net
Income to be significantly higher.

For 2007, Wolfgang Leitner, President and CEO of Andritz, is also
very confident: "The economic environment for our relevant industries
remains favorable. Due to the high Order Backlog and the full
consolidation of VA TECH HYDRO we expect Group Sales in 2007 to
approach 3 billion Euros and a further increase in Net Income."

Disclaimer Certain statements contained in this press release
constitute "forward-looking statements". These statements, which
contain the words "believe", "intend", "expect" and words of similar
meaning, reflect management’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.

Key Figures for the First Three Quarters of 2006

(in MEUR) Q1-Q3 2005 Q1-Q32006 Change Q3 2005 Q3 2006 Change
Sales 1,204.0 1,702.6 +41.4% 426.5 735.2 +72.4%
Order Intake 1,400.2 2,062.9 +47.3% 509.9 785.8 +54.1%
Order Backlog (as
of end of period) 1,667.8 3,561.9 +113.6% 1,667.8 3,561.9 +113.6%
EBITDA 1) 90.4 122.7 +35.7% 33.7 52.5 +55.8%
EBITDA Margin 7.5% 7.2% - 7.9% 7.1% -
EBITA 2) 72.8 99.7 +37.0% 27.6 42.0 +52.2%
EBITA Margin 6.0% 5.9% - 6.5% 5.7% -
EBIT 72.8 99.7 +37.0% 27.6 42.0 +52.2%
EBIT Margin 6.0% 5.9% - 6.5% 5.7% -
Earnings before
Taxes 74.4 101.4 +36.3% 28.2 41.5 +47.2%
Net Income excl.
Minority Interests 56.2 68.2 +21.4% 23.9 28.2 +18.0%
Cash flow from
Operating Activities 107.3 -35.6 -133.2% 68.8 52.4 -23.8%
Capital Expenditure 3) 18.0 27.2 +51.1% 8.2 14.1 +72.0%
Employees
(as of end of period) 5,905 10,010 +69.5% 5,905 10,010 +69.5%

1) EBITDA: Earnings before Interest, Taxes, Depreciation, and
Amortization of Goodwill 2) EBITA: Earnings before
Interest, Taxes, and Amortization of Goodwill 3) Additions to
tangible and intangible assets

The Letter to Shareholders for the First Three Quarters of 2006 is
available on the Andritz web site (www.andritz.com) both as an online
and a PDF version. Printed versions can be requested by telephone
(+43 316 6902 2722), fax (+43 316 6902 465) or e-mail
(petra.wolf@andritz.com).

The Andritz Group The Andritz Group - listed on the Vienna Stock
Exchange - is a global market leader for advanced production systems
for pulp and paper, steel and other specialized industries. Andritz
has a staff of approximately 10,000 employees worldwide. It develops
and makes its high-tech systems at 35 production sites (Austria,
Germany, Finland, Denmark, France, Netherlands, USA, Canada, and
China).

end of announcement euro adhoc 07.11.2006 07:30:00
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ots Originaltext: Andritz AG
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:
Dr. Michael Buchbauer
Head of Investor Relations
Tel.: +43 316 6902 2979
Fax: +43 316 6902 465
mailto:michael.buchbauer@andritz.com

Branche: Machine Manufacturing
ISIN: AT0000730007
WKN: 632305
Index: WBI, ATX Prime, ATX
Börsen: Wiener Börse AG / official dealing


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