EQS-News: ANDRITZ continues stable development in first half of 2024

EQS-News: Andritz AG / Key word(s): Half Year Results
ANDRITZ continues stable development in first half of 2024

25.07.2024 / 07:30 CET/CEST
The issuer is solely responsible for the content of this announcement.

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GRAZ, JULY 25, 2024. International technology group ANDRITZ showed a largely
stable business development in the first half of 2024 against the backdrop of a
continuously challenging economic environment.

Compared to the previous year’s reference period, revenue decreased slightly, while
profitability (EBITA margin) showed a slight increase, and net income remained
stable. Order intake dropped considerably from the high level of the first half of
2023 due to the continued absence of major capital investments by customers in the
pulp & paper and metals industries. Order intake for services and green products
continued to grow.

Growth trend in green products
The Environment & Energy business area showed significant growth in both revenue
and order intake compared to the reference period of last year.

In the Pulp & Paper business area, ANDRITZ received a large order for lignin
recovery at a pulp mill of the Swedish Södra Group. Lignin will be used as a
renewable resource to replace fossil-based materials in the chemical industry and
serve as a basis for new biofuels. Lignin recovery plants are part of ANDRITZ’s
CircleToZero solutions for the utilization of production side streams, supporting
the circular economy and creating new business opportunities for customers.

Innovative order highlights in the second quarter have again been awarded by
Finnish Metsä Group. They included a process study for the integration of carbon
capture into a bioproduct mill and a pre-study for the first commercial mill to
produce a new type of man-made cellulosic fiber.

Complementary acquisition
In June 2024, ANDRITZ acquired Procemex, a leading global supplier of web
monitoring and web inspection solutions for the pulp and paper industry. The
integration of Procemex strengthens ANDRITZ’s digitalization portfolio and its
ability to help pulp and paper mills further automate their operations and increase
efficiency.

ANDRITZ CEO Joachim Schönbeck commented: “In view of the challenging economic
environment, we are satisfied with our business development in the first half of
the year. Thanks to the growth in service business and green products, combined
with solid order execution, we were able to maintain our net income at last year’s
level and slightly increased our profitability.”

Guidance confirmed
In the current economic environment, ANDRITZ does not expect a quick recovery of
the markets. However, project activity has picked up in several markets. Based on
the order backlog, the growing demand for green products, and the growth of the
service business, ANDRITZ confirms its outlook for the financial year 2024 and
expects stable revenue and profitability (EBITA margin).

Due to the continued decline in order intake, a focus is being placed on increasing
cost efficiency, and selective capacity adjustments have been initiated.

The key financial figures developed as follows during the reporting period:

• Order intake in the second quarter of 2024 decreased to 1,895.1 MEUR (-17.3%
vs. Q2 2023: 2,292.3 MEUR), and in the first half of 2024 to 3,845.4 MEUR
(-18.4% vs. H1 2023: 4,712.5 MEUR). This decrease is mainly due to the absence
of large capital orders in Pulp & Paper and Metals. Pulp & Paper achieved a
slight increase in order intake in Q2 2024 compared to Q2 2023. Environment &
Energy was able to increase its order intake significantly (+38% vs. H1 2023).
In the Hydropower business area, the previous year’s reference period was
marked by the booking of a major order for a hydropower plant in Laos.
 
• The order backlog as of June 30, 2024 amounted to 9,709.1 MEUR, decreasing by
1.7% compared to the end of 2023 (9,872.6 MEUR).
 
• Revenue in the second quarter of 2024 decreased by 2.2% compared to the
previous year’s reference period (Q2 2023: 2,146.4 MEUR), reaching 2,100.2
MEUR. In H1 2024, revenue amounted to 3,986.6 MEUR (-3.0% vs. H1 2023: 4,109.0
MEUR). Environment & Energy achieved a significant increase in revenue, while
the other business areas showed a stable or slightly declining development.
 
• The operating result (EBITA) in the second quarter of 2024 increased to
180.6 MEUR (+3.7% versus Q2 2023: 174.1 MEUR). Profitability (EBITA margin)
amounted to 8.6% (Q2 2023: 8.1%). In the first half of 2024, EBITA increased
slightly and reached a level of 333.0 MEUR (+0.1% vs. H1 2023: 332.6 MEUR). The
EBITA margin remained at a very solid level of 8.4% (H1 2023: 8.2%).
 
• The net income (including non-controlling interests) remained stable: in the
second quarter of 2024 it amounted to 119.7 MEUR (+0.6% vs. Q2 2023: 119.0
MEUR), in the first half of 2024 to 223.8 MEUR (+1.0% vs. H1 2023: 221.5 MEUR).

 Key financial figures at a glance

 

  Unit H1 2024 H1 2023 +/- Q2 2024 Q2 2023 +/- 2023
Revenue MEUR 3,986.6 4,109.0 -3.0% 2,100.2 2,146.4 -2.2% 8,660.0
    – Pulp & Paper MEUR 1,738.0 1,909.2 -9.0% 905.7 1,021.9 -11.4% 3,987.4
    – Metals MEUR 894.0 892.2 +0.2% 454.5 470.4 -3.4% 1,839.6
    – Hydropower MEUR 663.7 710.5 -6.6% 361.4 354.9 +1.8% 1,521.7
    – Environment &
Energy MEUR 690.9 597.1 +15.7% 378.6 299.2 +26.5% 1,311.3
Order intake MEUR 3,845.4 4,712.5 -18.4% 1,895.1 2,292.3 -17.3% 8,551.9
    – Pulp & Paper MEUR 1,485.3 1,789.0 -17.0% 842.8 820.6 +2.7% 3,036.0
    – Metals MEUR 670.1 1,177.0 -43.1% 321.0 507.7 -36.8% 1,997.7
    – Hydropower MEUR 781.7 1,086.6 -28.1% 284.1 657.3 -56.8% 2,020.9
    – Environment &
Energy MEUR 908.3 659.9 +37.6% 447.2 306.7 +45.8% 1,497.3
Order backlog
(as of end of period) MEUR 9,709.1 10,569.0 -8.1% 9,709.1 10,569.0 -8.1% 9,872.6
EBITDA MEUR 423.4 415.3 +2.0% 229.4 214.9 +6.7% 910.2
EBITDA margin % 10.6 10.1 – 10.9 10.0 – 10.5
EBITA MEUR 333.0 332.6 +0.1% 180.6 174.1 +3.7% 741.9
EBITA margin % 8.4 8.1 – 8.6 8.1 – 8.6
Comparable EBITA MEUR 328.6 335.3 -2.0% 175.1 175.0 +0.1% 757.1
Comparable EBITA
margin % 8.2 8.2 – 8.3 8.2 – 8.7
Earnings Before
Interest and
Taxes (EBIT) MEUR 309.2 308.5 +0.2% 169.3 162.5 +4.2% 685.2
Financial result MEUR -8.6 -6.8 -26.5% -8.4 1.5 -660.0% 3.0
Earnings Before Taxes
(EBT) MEUR 300.6 301.7 -0.4% 160.9 164.0 -1.9% 688.2
Net income
(including
non-controlling
interests) MEUR 223.8 221.5 +1.0% 119.7 119.0 +0.6% 504.3
Cash flow from
operating activities MEUR 308.5 -79.3 n.a. 23.2 -47.9 n.a. 375.0
Capital expenditure MEUR 107.0 93.3 +14.7% 67.3 44.9 +49.9% 226.2
Employees (as of end
of period;
without apprentices) – 30,115 29,927 +0.6% 30,115 29,927 +0.6% 29,717
                 

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 [1]andritz.com/news on the ANDRITZ
web site.

FOR FURTHER INFORMATION, PLEASE CONTACT:

Niklas Jelinek
External Communications Lead / Media Relations
[2]press@andritz.com
[3]andritz.com

Matthias Pfeifenberger
Head of Investor Relations
[4]investors@andritz.com
[5]andritz.com

ANDRITZ GROUP
International technology group ANDRITZ offers a broad portfolio of innovative
plants, equipment, systems, services and digital solutions for a wide range of
industries and end markets. Sustainability is an integral part of the company’s
business strategy and corporate culture. With its extensive portfolio of
sustainable products and solutions, ANDRITZ aims to make the greatest possible
contribution to a sustainable future and help its customers achieve their
sustainability goals. ANDRITZ is a global market leader in all four of its business
areas – Pulp & Paper, Metals, Hydropower and Environment & Energy. Technological
leadership and global presence are cornerstones of the group’s strategy, which is
focused on long-term profitable growth. The publicly listed group has around 30,000
employees and over 280 locations in more than 80 countries.

ANNUAL AND FINANCIAL REPORTS
The annual and financial reports are available for download on the ANDRITZ web site
at [6]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.

 

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25.07.2024 CET/CEST This Corporate News was distributed by EQS Group AG.
www.eqs.com

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Language: English
Company: Andritz AG
Stattegger Straße 18
8045 Graz
Austria
Phone: +43 (0)316 6902-0
Fax: +43 (0)316 6902-415
E-mail: welcome@andritz.com
Internet: www.andritz.com
ISIN: AT0000730007
Indices: ATX
Listed: Vienna Stock Exchange (Official Market)
EQS News ID: 1953427

 
End of News EQS News Service

1953427  25.07.2024 CET/CEST

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