EANS-News: ANDRITZ GROUP: Results for the first half of 2016

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6-month report

Graz, August 5, 2016. International technology Group ANDRITZ saw
solid business development in the first half of 2016. The key
financial figures developed as follows:

- Sales in the first half of 2016 amounted to 2,761.2 MEUR,
decreasing by 8.1% compared to the previous year's reference period
(H1 2015: 3,005.6 MEUR). In the second quarter of 2016, sales
decreased by 7.8% compared to the previous year's reference period,
reaching 1,475.6 MEUR (Q2 2015: 1,601.3 MEUR).

- In the first half of 2016, order intake of 2,566.4 MEUR was
practically at the same level as during the previous year's
reference figure (-0.5% versus H1 2015: 2,580.0 MEUR). In the
second quarter of 2016, order intake amounted to 1,319.0 MEUR, thus
increasing by 14.8% compared to the previous year's reference
period (Q2 2015: 1,149.4 MEUR) and also by 5.7% compared to the
previous quarter (Q1 2016: 1,247.4 MEUR). This increase is
particularly due to some large orders being booked in the metal
forming sector for the automotive and the automotive supplying
industry (market segment of Schuler).

- The order backlog as of June 30, 2016, amounted to 7,076.3 MEUR
(-3.4% versus December 31, 2015: 7,324.2 MEUR).

- Despite the decline of sales, the EBITA, at 183.0 MEUR, in the
first half of 2016 remained practically at the same level as during
the previous year's reference period (-1.0% versus H1 2015: 184.9
MEUR). As a result, profitability (EBITA margin) increased to 6.6%
(H1 2015: 6.2%). In the second quarter of 2016, the EBITA amounted
to 99.1 MEUR (-11.1% versus Q2 2015: 111.5 MEUR).

- Net income (without non-controlling interests) increased to 120.2
MEUR (H1 2015: 113.9 MEUR) in the first half of 2016.

Wolfgang Leitner, President & CEO of ANDRITZ AG: "In view of the
continuing, difficult overall macroeconomic environment, we are
satisfied with the results achieved in the first half of the year.
From today's perspective, we do not expect any significant changes in
the markets we serve for the remaining months of this year."

On the basis of the current financial results, ANDRITZ expects a
decline in Group sales for the 2016 business year compared to 2015,
but also expects solid development of profitability at the same time.

- End -

Key financial figures of the ANDRITZ GROUP at a glance

(in MEUR) H1 2016 H1 2015 +/- Q2 2016 Q2 2015 +/- 2015
Sales 2,761.2 3,005.6 -8.1% 1,475.6 1,601.3 -7.8% 6,377.2
HYDRO 807.3 866.3 -6.8% 439.4 458.4 -4.1% 1,834.8
PULP & PAPER 980.4 1,043.9 -6.1% 522.8 563.4 -7.2% 2,196.3
METALS 703.6 796.1 -11.6% 370.6 419.0 -11.6% 1,718.1
SEPARATION 269.9 299.3 -9.8% 142.8 160.5 -11.0% 628.0

Order intake 2,566.4 2,580.0 -0.5% 1,319.0 1,149.4 +14.8% 6,017.7
HYDRO 591.4 794.7 -25.6% 339.4 347.7 -2.4% 1,718.7
PULP & PAPER 916.0 908.9 +0.8% 370.4 446.5 -17.0% 2,263.9
METALS 768.7 595.4 +29.1% 469.4 210.5 +123.0% 1,438.6
SEPARATION 290.3 281.0 +3.3% 139.8 144.7 -3.4% 596.5

Order backlog
(as of end
of period) 7,076.3 7,349.0 -3.7% 7,076.3 7,349.0 -3.7% 7,324.2

EBITDA 229.6 230.9 -0.6% 122.9 134.8 -8.8% 534.7
EBITDA margin (%) 8.3 7.7 - 8.3 8.4 - 8.4

EBITA 183.0 184.9 -1.0% 99.1 111.5 -11.1% 429.0
EBITA margin (%) 6.6 6.2 - 6.7 7.0 - 6.7

Earnings Before
Interest and
Taxes (EBIT) 163.0 159.6 +2.1% 88.8 98.1 -9.5% 369.1

Financial result 8.9 6.7 +32.8% 8.1 5.6 +44.6% 7.3

Earnings Before
Taxes (EBT) 171.8 166.4 +3.2% 96.9 103.8 -6.6% 376.4

Net income
(without non-
controlling
interests) 120.2 113.9 +5.5% 67.7 69.9 -3.1% 267.7

Cash flow from
operating
activities 200.6 -7.8 +2,671.8% 33.1 -45.0 +173.6% 179.4

Capital
expenditure 44.8 36.3 +23.4% 28.3 15.5 +82.6% 101.4

Employees
(as of end of
period; without
apprentices) 25,737 24,992 +3.0% 25,737 24,992 +3.0% 24,508

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. EUR = euros.

Press release for download
The press release is available for download at the ANDRITZ web site:
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 approximately 25,700 employees. ANDRITZ operates over 250
sites worldwide.

Annual and financial reports The annual reports and financial reports
of the ANDRITZ GROUP are available 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:
Dr. Michael Buchbauer
Head of Corporate Communications
Tel.: +43 316 6902 2979
Fax: +43 316 6902 465
mailto:michael.buchbauer@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