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ANDRITZ: results for the first quarter of 2010
Sales declining, HYDRO business area remains strong
Sales of the ANDRITZ GROUP amounted to 732.3 MEUR during the first quarter of 2010, thus 7.3% below the reference figure for the previous year (Q1 2009: 790.1 MEUR). While the HYDRO business area achieved a significant increase in sales compared to last year's reference quarter, sales in the other business areas declined - especially in METALS and ENVIRONMENT & PROCESS.
Solid development of order intake and order backlog
Order intake of the ANDRITZ GROUP saw a solid development in the first quarter of 2010, amounting to 908.4 MEUR and thus declining by 7.4% compared to the very high reference value for the previous year, but still significantly higher than the figures for the preceding quarters. Order intake of the HYDRO business area was significantly below the very high reference value for last year, which had included some major orders; also the METALS business area saw a significant decline in order intake. In contrast, order intake of the PULP & PAPER business area developed very favorably, more than doubling the figure for last year's reference period.
Order backlog of the ANDRITZ GROUP as of March 31, 2010 amounted to 4,724.3 MEUR, an increase of 5.8% compared to the reference date for last year (March 31, 2009: 4,464.0 MEUR).
Satisfactory earnings, increased profitability
Despite the decline in sales, EBITA of the ANDRITZ GROUP, at 43.7 MEUR in the first quarter of 2010, remained stable compared to the reference value of last year (Q1 2009: 43.7 MEUR). While earnings in the HYDRO and the PULP & PAPER business areas rose significantly, the METALS and the ENVIRONMENT & PROCESS business areas in particular showed a decline in earnings.
EBITA margin of the Group increased to 6.0% and was thus higher than during the reference period for the last year (Q1 2009: 5.5%). In particular, the HYDRO and the PULP & PAPER business areas' profitability developed very favorably.
Net income (excluding noncontrolling interests) amounted to 28.9 MEUR, which is an increase of 12.5% compared to the reference figure of the previous year (Q1 2009: 25.7 MEUR).
Solid balance sheet structure, substantially higher liquidity
Total assets increased to 3,538.0 MEUR as of March 31, 2010 (December 31, 2009: 3,309.3 MEUR); the equity ratio amounted to 19.0% (December 31, 2009: 20.0%).
Liquid funds (cash and cash equivalents plus marketable securities) amounted to 1,296.5 MEUR as of March 31, 2010 (December 31, 2009: 1,082.1 MEUR). Net liquidity (liquid funds plus fair value of interest rate swaps minus financial liabilities) increased to 897.7 MEUR, thus also substantially higher than at the end of last year (December 31, 2009: 677.9 MEUR).
Outlook for 2010 confirmed
The ANDRITZ GROUP confirms its financial guidance made on the occasion of the release of the 2009 financial results in March 2010 concerning the expected development of the markets it serves and the business development for the 2010 financial year. President and CEO Wolfgang Leitner comments: ?While we expect a favorable market environment for the HYDRO business area in the next few months, and the ENVIRONMENT & PROCESS and the FEED & BIOFUEL business areas should also develop satisfactorily, we assume that the very moderate investment activity in the METALS business area will continue in the coming quarters. In the PULP & PAPER business area, we do not expect any sustained improvement for the time being despite the good order intake in the first quarter.'
Based on these expectations and the order backlog of more than 4.7 bn. EUR at the end of March 2010, the ANDRITZ GROUP expects sales in 2010 to remain unchanged or slightly up compared to 2009. The cost reductions resulting from the restructuring measures implemented in 2009 should positively impact the net income.
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