EANS-News: ANDRITZ GROUP: favorable business development in the third quarter of 2015

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quarterly report

Graz, November 6, 2015. In the third quarter of 2015, international
technology Group ANDRITZ showed a favorable business development:

- Sales amounted to 1,583.5 MEUR in the third quarter of 2015 and
were thus 8.2% higher than the figure in the third quarter of 2014
(1,463.5 MEUR), with all four business areas increasing their
sales. In the first three quarters of 2015, Group sales rose by
11.3% to 4,589.1 MEUR compared to last year's reference period
(Q1-Q3 2014: 4,122.9 MEUR).

- The order intake in the third quarter of 2015, at 1,187.6 MEUR, was
25.4% below the high figure for the previous year's reference
period (Q3 2014: 1,591.5 MEUR), which included some large orders in
the PULP & PAPER and METALS business areas. In connection with the
decline in order intake it has to be mentioned that the large order
awarded to ANDRITZ by Fibria in July 2015 to supply equipment for a
new pulp mill in Brazil was booked in the fourth quarter of 2015;
typical order values of comparable projects are about 600 MEUR. In
the first three quarters of 2015, the order intake amounted to
3,767.6 MEUR and was thus 17.6% below the high previous year's
reference figure (Q1-Q3 2014: 4,571.6 MEUR).

- Earnings of the ANDRITZ GROUP developed favorably. In the third
quarter of 2015, EBITA rose to 110.1 MEUR, which is an increase of
9.0% compared to the previous year's reference figure (Q3 2014:
101.0 MEUR). The EBITA margin amounted to 7.0% (Q3 2014: 6.9%). As
announced at the end of August 2015, around 55 MEUR of financial
provisions were booked in the reporting period for optimization of
the value chain at Schuler. These provisions were partly offset by
project-related one-off improvements in the amount of approximately
30 MEUR in the PULP & PAPER business area. After adjustment of these
extraordinary effects, the Group's EBITA amounted to 135.1 MEUR and
the EBITA margin to 8.5% in the third quarter of 2015. Earnings
also increased substantially in the first three quarters of 2015.
At 295.0 MEUR, the EBITA was 25.9% higher than the figure for the
previous year's reference period (Q1-Q3 2014: 234.4 MEUR), while
the EBITA margin amounted to 6.4% (Q1-Q3 2014: 5.7%). Excluding the
extraordinary effects booked in the third quarter of 2015, the
EBITA increased to 320.0 MEUR and the EBITA margin to 7.0%.

- Net income (without non-controlling interests) in the first three
quarters of 2015 reached 181.3 MEUR (Q1-Q3 2014: 123.6 MEUR).

On the basis of this business development, the project activity in
the ANDRITZ business areas, and the order backlog as of end of
September 2015, ANDRITZ currently expects an increase in sales and
net income for 2015 compared to the previous year. However, if the
economic weakness looming in the emerging economies (particularly
China) worsens in the coming months and the global economy further
weakens, this could have a negative impact on ANDRITZ's business
development.

- End -

Key financial figures of the ANDRITZ GROUP at a glance

(in MEUR) Q1-Q3 Q1-Q3
2015 2014 +/- Q3 2015 Q3 2014 +/- 2014

Sales 4,589.1 4,122.9 +11.3% 1,583.5 1,463.5 +8.2% 5,859.3
HYDRO 1,309.6 1,232.2 +6.3% 443.3 426.8 +3.9% 1,752.3
PULP & PAPER 1,586.4 1,369.9 +15.8% 542.5 500.6 +8.4% 1,969.3
METALS 1,239.8 1,111.8 +11.5% 443.7 389.5 +13.9% 1,550.4
SEPARATION 453.3 409.0 +10.8% 154.0 146.6 +5.0% 587.3

Order intake 3,767.6 4,571.6 -17.6% 1,187.6 1,591.5 -25.4% 6,101.0
HYDRO 1,122.0 1,166.0 -3.8% 327.3 351.4 -6.9% 1,816.7
PULP & PAPER 1,255.7 1,629.9 -22.9% 346.8 572.4 -39.4% 1,995.7
METALS 953.8 1,328.1 -28.2% 358.4 530.2 -32.4% 1,692.8
SEPARATION 436.1 447.9 -2.6% 155.1 137.5 +12.8% 595.8

Order backlog
(as of end
of period) 6,891.8 7,702.2 -10.5% 6,891.8 7,702.2 -10.5% 7,510.6

EBITDA 364.1 298.9 +21.8% 133.2 123.2 +8.1% 472.0
EBITDA margin (%) 7.9 7.2 - 8.4 8.4 - 8.1

EBITA 295.0 234.4 +25.9% 110.1 101.0 +9.0% 379.5
EBITA margin (%) 6.4 5.7 - 7.0 6.9 - 6.5

Earnings before
Interest and
Taxes (EBIT) 259.1 176.0 +47.2% 99.5 81.6 +21.9% 295.7

Financial result 4.0 -1.7 +335.3% -2.8 0.0 n.a. 3.7

Earnings Before
Taxes (EBT) 263.1 174.3 +50.9% 96.7 81.6 +18.5% 299.4

Net income
(without non-
controlling
interests) 181.3 123.6 +46.7% 67.4 56.9 +18.5% 210.9

Cash flow
from operating
activities 132.8 225.6 -41.1% 140.6 176.6 -20.4% 342.1

Capital
expenditure 59.7 61.9 -3.6% 23.4 27.4 -14.6% 106.5

Employees
(as of end of
period; without
apprentices) 24,769 24,468 +1.2% 24,769 24,468 +1.2% 24,853

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 euro. EUR = euro.

Press release for download
The press release is available for download at www.andritz.com/news.

The ANDRITZ GROUP ANDRITZ is a globally leading supplier of plants,
equipment, and services for hydropower stations, the pulp and paper
industry, the metalworking and steel industries, and for solid/liquid
separation in the municipal and industrial sectors. The publicly
listed technology Group is headquartered in Graz, Austria, and has a
staff of almost 25,000 employees. ANDRITZ operates over 250 sites
worldwide.

Annual and financial reports The Annual and Financial Reports of the
ANDRITZ GROUP are available as PDF for download at www.andritz.com.
Printed copies may be requested free of charge from
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
Head of Corporate Communications
Tel.: +43 316 6902 1332
Fax: +43 316 6902 465
mailto:oliver.pokorny@andritz.com

end of announcement euro adhoc
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company: 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