EANS-News: ANDRITZ GROUP: Results for the first quarter of 2020
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distribution. The issuer is responsible for the content of this announcement.
Graz - April 30, 2020.
International technology group ANDRITZ saw mixed business development overall in
the first quarter of 2020. While order intake at over 1.8 billion euros was
higher than in the previous year's reference period, the operating result
(EBITA) fell despite a slight increase in sales.
The key financial figures developed as follows:
* At 1,852.9 million euros (MEUR), order intake reached a favorable level and
was 11.7% higher than the figure for the previous year's reference period (Q1
2019: 1,658.1 MEUR). This is largely attributable to the Pulp & Paper business
area, which succeeded in booking a large order for a new pulp mill in South
America during the reporting period. Order intake also increased in the Metals
business area due to favorable development in the Metals Forming (Schuler)
sector. Order intake declined in the Hydro business area, which faced
continuing difficult market conditions.
* Order backlog as of March 31, 2020, amounted to 7,924.6 MEUR and has thus
increased compared to the end of 2019 (December 31, 2019: 7,777.6 MEUR).
* Sales at 1,510.2 MEUR increased by 1.4% and were slightly higher than the
previous year's reference period (Q1 2019: 1,489.2 MEUR). This is attributable
to the Pulp & Paper business area, which was able to increase sales
substantially compared to the previous year and thus overcompensated the
decline in sales in the other business areas.
* Despite the small increase in sales, EBITA fell significantly compared to the
previous year and amounted to 70.1 MEUR (-15.3% versus Q1 2019: 82.8 MEUR). As
a result, the Group's profitability (EBITA margin) decreased to 4.6% (Q1 2019:
5.6%). While earnings in the Pulp & Paper business area increased compared to
the previous year's reference period and profitability remained at an
unchanged favorable level, EBITA declined considerably in the Metals and Hydro
business areas. The Metals business area faced very difficult market
conditions, both in Metals Forming and Metals Processing, during the reporting
period. Metals Forming (Schuler), in particular, saw a significant decline in
earnings as a result of the crisis in the international automotive industry
and the related underutilization of capacities there. The reduction in
capacity initiated in Germany at the end of last year will not be effective
until the second half of 2020, with more impact to come in 2021.
* Due to lower planned depreciation of intangible assets, the EBIT increased
slightly to 53.8 MEUR (Q1 2019: 52.9 MEUR).
* The financial result decreased to -9.5 MEUR (Q1 2019: -6.4 MEUR), mainly due
to the valuation of securities and accounts in foreign currencies (FX) in the
other financial result as of the reporting date.
* As a result, net income (without non-controlling interests) declined to 31.5
MEUR (Q1 2019: 33.6 MEUR).
* The gross liquid funds amounted to 1,543.1 MEUR at the end of March 2020. In
addition, the ANDRITZ GROUP has surety lines totaling 5,902 MEUR at its
disposal, of which around 2,977 MEUR are utilized. Thus, the ANDRITZ GROUP has
a solid liquidity position.
OUTLOOK FOR 2020: GUIDANCE REMAINS SUSPENDED
In view of the continuing difficult general economic conditions globally due to
the Covid-19 pandemic and the lack of visibility concerning its further
development, it is still not possible from today's perspective to provide
reliable information on the expected development of the ANDRITZ GROUP's sales
and earnings in 2020.
In reaction to the negative economic impact of the coronavirus crisis, ANDRITZ
has launched immediate adjustment measures focusing on achieving cost savings in
the short term and optimizing cost structures in the medium term.
Wolfgang Leitner, President and CEO of ANDRITZ AG: "Project visibility in the
markets we serve is currently still very low. We are monitoring the situation
closely and will take further steps in line with developments to keep the
financial impact as low as possible and safeguard ANDRITZ's ability to compete."
KEY FINANCIAL FIGURES AT A GLANCE
|Net income |MEUR|31.5 |33.6 |-6.3% |127.8 |
|Cash flow from |MEUR|56.9 |56.0 |+1.6% |821.6 |
|Employees (as of end of period; without |- |28,411 |29,398 |-3.4% |29,513 |
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.
- End -
PRESS RELEASE AVAILABLE FOR DOWNLOAD
This press release is available for download at andritz.com/news.
International technology group ANDRITZ offers a broad portfolio of innovative
plants, equipment, systems and services for the pulp and paper industry, the
hydropower sector, the metals processing and forming industry, solid/liquid
separation in the municipal and industrial sectors, as well as animal feed and
biomass pelleting. The global product and service portfolio is rounded off with
plants for power generation, recycling, the production of nonwovens and
panelboard, as well as automation and digital solutions offered under the brand
name of Metris. The publicly listed group today has around 28,400 employees and
more than 280 locations in over 40 countries.
ANNUAL AND FINANCIAL REPORTS
Annual and Financial reports are available for download at the ANDRITZ web site
andritz.com, and printed editions can be requested free of charge by e-mail to email@example.com.
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
Further inquiry note:
Dr. Michael Buchbauer
Head of Group Finance
Tel.: +43 316 6902 2979
Fax: +43 316 6902 465
end of announcement euro adhoc
issuer: Andritz AG
Stattegger Straße 18
phone: +43 (0)316 6902-0
FAX: +43 (0)316 6902-415
indexes: WBI, ATX