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Results for the First Half of 2007
- Increase in Order Intake, Sales, and Net Income
- Order Backlog, at over 3.8 bn Euros, provides solid basis for the coming Quarters
- Significant increase in Sales and Earnings expected for 2007
International Technology Group Andritz reports a very favorable business development for the First Half of 2007, with increases in Order Intake as well as in Sales and Net Income compared to the reference period of last year. Order Backlog as of 30.06.2007 reached a record level of more than 3.8 billion Euros. For the full year 2007, Andritz expects to achieve new record results, with Group Sales to increase to approximately 3.2 bn Euros and Net Income to increase in line with Sales growth.
Increase in Sales
During the First Half of 2007, Sales of the Andritz Group were 1,537.0 MEUR, an increase of 58.9% compared to the reference period of last year (H1 2006: 967.5 MEUR). In particular, the Pulp and Paper, the Hydro Power, and the Rolling Mills and Strip Processing Lines Business Areas were able to increase their Sales compared to the First Half of last year.
Newly acquired companies, which were not included in the consolidated financial statements of the First Half of 2006, added 334.7 MEUR to Group Sales in the First Half of 2007 (of which 331.8 MEUR came from VA TECH HYDRO). Organic growth of the Andritz Group, therefore, amounted to 24.3% during the First Half of 2007.
Order Intake up, Order Backlog at record level
Group Order Intake for the First Half of 2007 amounted to 2,037.5 MEUR. This was an increase of 59.5% compared to the First Half of 2006 (1,277.1 MEUR), and mainly due to the first-time consolidation of VA TECH HYDRO, whose Order Intake developed substantially above expectations, and the favorable development of the Pulp and Paper, and the Rolling Mills and Strip Processing Lines Business Areas.
During the First Half of 2007, the combined Order Intake of newly consolidated companies amounted to 516.6 MEUR, of which 512.6 MEUR came from VA TECH HYDRO.
The Group’s Order Backlog as of 30.06.2007 reached a record level of 3,867.9 MEUR, thus significantly increasing compared to the reference date of last year (30.06.2006: 2,059.1 MEUR). This was mainly due to the consolidation of VA TECH HYDRO, which added 1,738.5 MEUR to the Group’s Order Backlog as of 30.06.2007.
In step with higher Sales, Earnings before Interest, Taxes, and Amortization of intangibles related to acquisitions (EBITA) in the First Half of 2007 increased by 51.5%, to 87.4 MEUR (H1 2006: 57.7 MEUR). The EBITA margin for this period amounted to 5.7%, down compared to the reference period of last year (H1 2006: 6.0%). This is mainly due to the consolidation of VA TECH HYDRO and a slight profitability decline of the Pulp and Paper Business Area.
Net Income excluding minority interests amounted to 61.6 MEUR, exceeding last year’s reference value by 54.4% (H1 2006: 39.9 MEUR).
Balance sheet structure
The net worth position and capital structure of the Andritz Group as of 30.06.2007 showed no major changes compared to 31.12.2006.
Net liquidity (cash and cash equivalents minus interest-bearing financial liabilities), at 332.9 MEUR as of 30.06.2007, was still at a very high level (31.12.2006: 365.7 MEUR). The equity ratio as of 30.06.2007 was 18.1% (31.12.2006: 17.4%).
Outlook for the full year 2007
For the Second Half of 2007, Andritz expects project activity to continue to develop favorably in all Business Areas. Wolfgang Leitner, President and CEO of Andritz: “In all of our Business Areas, we see a continued good market environment and thus expect a favorable business development for the remaining months of 2007. Based on the favorable results for the First Half of 2007, Andritz expects Group Sales to increase to approximately 3.2 bn EUR in 2007. Net Income should increase in line with Sales growth.”
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