Andritz Group: Results for the 2013 Business Year
International technology Group Andritz looks back on a disappointing 2013 business year. Although the Hydro and Metals (including Schuler) business areas saw very positive development, the results of the Pulp & Paper and Separation business areas were unsatisfactory.
Together with expected expenses and provisions for the structural improvement program at Schuler, this resulted in a substantial decline in the Andritz Group’s earnings and profitability in 2013 compared to the preceding year. The main financial developments in detail:
- Sales of the Andritz Group amounted to 5,710.8 MEUR and were thus 10.3% higher than the reference figure for the previous year (2012: 5,176.9 MEUR). This increase is due to consolidation of the Schuler Group, which has contributed 966.6 MEUR in sales since its first-time consolidation as of March 1, 2013.
- The order intake rose by 13.9% compared to the previous year, reaching 5,611.0 MEUR (2012: 4,924.4 MEUR), with the Schuler Group contributing 868.4 MEUR. The order intake of all four business areas reached a satisfactory level.
- The order backlog amounted to 7,388.5 MEUR as of December 31, 2013, an increase of 11.7% compared to the end of last year (December 31, 2012: 6,614.8 MEUR). The Schuler Group contributed 1,040.4 MEUR to the Group’s order backlog.
- Earnings (EBITA) amounted to 164.1 MEUR and were thus 54.1% below the reference figure for the previous year (2012: 357.8 MEUR). Profitability (EBITA margin) declined to 2.9% (2012: 6.9%). The main reasons for this substantial decline are high expenses and provisions in the Pulp & Paper business area for cost overruns in connection with supplies to a pulp mill in South America as well as planned exceptional expenses and provisions for the structural improvement program at Schuler. Furthermore, additional costs for the market launch of a new product series in China as well as the moderate investment activity in the mining and chemical industries led to a considerable decline in earnings in the Separation business area.
- Net income without non-controlling interests amounted to 66.6 MEUR (-72.6% vs. 2012: 242.7 MEUR).
- Due to consolidation of the Schuler Group, total assets of the Andritz Group increased to 5,571.4 MEUR (year-end 2012: 5,161.0 MEUR). Due to the acquisition of Schuler, the net liquidity, at 893.1 MEUR, declined significantly compared to the reference figure as of the end of 2012 (1,285.7 MEUR).
- In line with the earnings development, the Executive Board will propose a decrease in dividend to 0.50 EUR per share for the 2013 business year (2012: 1.20 EUR) at the Annual General Meeting on March 21, 2014, corresponding to a payout ratio of approximately 78% (2012: approximately 51%).
Referring to the outlook for the 2014 business year, Wolfgang Leitner, President and CEO of Andritz AG, says: “We do not anticipate any significant recovery in the global economy in 2014 and thus expect practically unchanged investment and project activity compared to 2013 in the markets served by ANDRITZ, with some major projects likely to be awarded in the hydro and pulp sectors.”
On the basis of these expectations, the order backlog, and the sales contribution by acquisitions not included in the full twelve-month period in 2013, the Andritz Group expects a slight rise in sales in 2014 compared to the previous year. The net income of the Group is currently expected to see a significant improvement in 2014 compared to the low earnings in 2013.
Source: ANDRITZ AG