EANS-Adhoc: ANDRITZ GROUP: significant drop in earnings in the first quarter of 2013

--------------------------------------------------------------------------------
ad-hoc disclosure transmitted by euro adhoc with the aim of a Europe-wide
distribution. The issuer is solely responsible for the content of this
announcement.
--------------------------------------------------------------------------------

Financial Figures/Balance Sheet/quarterly report
30.04.2013

Note: The Schuler Group was included in the ANDRITZ GROUP's
consolidated financial statement as of March 1, 2103.

Graz, April 30, 2013. International technology Group ANDRITZ
announces ad hoc that the financial figures for the first quarter of
2013 are significantly below the financial analysts' consensus
expectations.

While sales, at 1,163.8 MEUR, remained practically unchanged compared
to the previous year's reference figure (-1.8% vs. Q1 2012: 1.185,7
MEUR), the EBITA of the ANDRITZ GROUP amounted to 14.2 MEUR, which is
a significant decline of 80.4% compared to the first quarter of 2012
(72.5 MEUR). While the HYDRO and METALS business areas (including the
first-time consolidation of Schuler) noted satisfactory earnings,
PULP & PAPER shows a loss in the amount of -23.7 MEUR.

The reasons for the earnings drop in PULP & PAPER are substantial
cost overruns related to the supply of production technologies and
equipment for a pulp mill in South America. Thus, a provision in the
mid-double-digit million euros range was made. ANDRITZ believes,
however, that a substantial amount of additional costs is caused by
factors outside the company's responsibility and will uphold this
claim vigorously within all available legal options.

The SEPARATION business area also noted a considerable deterioration
of earnings, mainly due to additional costs related to technical
problems in the course of a market launch of a new product series in
China.

The net income of the Group amounted to 4.1 MEUR and was
significantly below the level for the previous year's reference
period (-91.9% vs. Q1 2012: 50.5 MEUR).

The order intake, at 1,288.3 MEUR (thereof 96.0 MEUR from Schuler),
was 5.4% lower than in the first quarter of 2012 (1,361.2 MEUR). The
order backlog as of March 31, 2013 increased compared to the end of
last year by 18.6% to 7,844.3 MEUR (December 31, 2012: 6,614.8 MEUR),
with Schuler contributing 1,125.9 MEUR.

Due to the first-time consolidation of Schuler, the total assets of
the Group increased significantly to 5,893.8 MEUR as of March 31,
2013 (December 31, 2012: 5,161.0 MEUR). Thus, the equity ratio
declined to 15.8% (December 31, 2012: 20.0%). The liquid funds
amounted to 1,750.4 MEUR (December 31, 2012: 2,047.8 MEUR) and the
net liquidity to 884.9 MEUR (December 31, 2012: 1,285.7).

On the basis of the development during the first quarter of 2013, and
in consideration of the current order backlog and the consolidation
of the Schuler Group as of March 1, 2013, the ANDRITZ GROUP expects
an increase in sales in the 2013 business year compared to the
previous year. However, due to the earnings decline in PULP & PAPER
as well as scheduled amortization of intangible assets related to the
acquisition of Schuler, the net income will be lower than the
previous year's reference figure.

Wolfgang Leitner, President and CEO of ANDRITZ AG: "The development
of the first quarter is very unsatisfactory. We believe that the
provisions now made will be sufficient, but cannot guarantee that
there will be no need for further financial provisions in the coming
quarters. We will adopt an even more selective approach in such
large-scale projects and give even greater consideration to the
earnings/risk profile in future."

- End -

Key figures of the ANDRITZ GROUP at a glance*

Unit Q1 2013 Q1 2012 +/- 2012
Sales MEUR 1,163.8 1,185.7 -1.8% 5,176.9
HYDRO MEUR 381.2 403.4 -5.5% 1,836.8
PULP & PAPER MEUR 452.4 563.5 -19.7% 2,282.2
METALS MEUR 202.0 89.4 +126.0% 404.7
SEPARATION** MEUR 128.2 129.4 -0.9% 653.2

Order intake MEUR 1,288.3 1,361.2 -5.4% 4,924.4
HYDRO MEUR 574.2 597.5 -3.9% 2,008.4
PULP & PAPER MEUR 423.5 529.4 -20.0% 1,962.4
METALS MEUR 144.5 64.3 +124.7% 324.2
SEPARATION** MEUR 146.1 170.0 -14.1% 629.4

Order backlog (as
of end of period) MEUR 7,844.3 7,034.7 +11.5% 6,614.8

EBITDA MEUR 32.0 86.5 -63.0% 418.6
EBITDA margin % 2.7 7.3 - 8.1

EBITA MEUR 14.2 72.5 -80.4% 357.8
EBITA margin % 1.2 6.1 - 6.9

Earnings Before Int.
and Taxes (EBIT) MEUR 3.1 66.7 -95.4% 334.5

Financial result MEUR -1.1 3.5 -131.4% -2.8

Earnings Before
Taxes (EBT) MEUR 2.0 70.1 -97.1% 331.6

Net income (without
non-controlling
interests) MEUR 4.1 50.5 -91.9% 243.6

Cash flow from
operating activities MEUR -79.7 37.2 -314.2% 346.5

Capital expenditure MEUR 21.4 19.5 +9.7% 109.1

Employees (as of end
of period; without
apprentices) - 23,660 17,063 +38.7% 17,865

* The Schuler Group was included in the ANDRITZ GROUP's consolidated
financial statements as of March 1, 2013 and is allocated to the
METALS business area. There are no pro forma figures available for
the previous year's reference periods.

** The FEED & BIOFUEL business area was allocated to the SEPARATION
business area as of January 1, 2013. The reference figures for the
previous year were adjusted accordingly.

All figures according to IFRS. Due to the utilization of automatic
calculation programs, differences can arise in the addition of
rounded totals and percentages. MEUR = million euros.

The ANDRITZ GROUP The ANDRITZ GROUP is a globally leading 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.

Annual and financial reports The annual reports and financial reports
of the ANDRITZ GROUP are available online and as PDF for download at
www.andritz.com. Printed copies can be requested by e-mail to
investors@andritz.com.

Disclaimer Certain statements contained in this press release
constitute "forward-looking statements". These statements, which
contain the words "believe", "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:
Oliver Pokorny
Group Treasury, Corporate Communications & Investor Relations
Tel.: +43 316 6902 1332
Fax: +43 316 6902 465
mailto:oliver.pokorny@andritz.com

end of announcement euro adhoc
--------------------------------------------------------------------------------

issuer: 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, ATX five
stockmarkets: official market: Wien
language: English