Editor’s pickANDRITZ announces results for 1H/2017
andritz,sales,first half results
ANDRITZ headquarters in Graz, Austria
International technology Group ANDRITZ announced satisfactory sales in the first half of 2017.
Sales remained stable, amounting to EUR2.7 Bn in the first half of 2017 (+0.6% YoY). Sales in 2Q dropped 5.6 per cent to EUR1.39Bn compared to the same period last year.
A strong first quarter saw order intake rising in 1H/2017 to EUR2.77 Bn, eight per cent higher compared to the same period last year. PULP & PAPER achieved a substantial increase in order intake that more than compensated the decline in order intake in the HYDRO business area. In the second quarter, the order intake, EUR1.21 Bn was 8.2 per cent lower YoY. The reason for this decrease was the lower order intake due to market conditions in the HYDRO business area and a decline in the metal forming sector, which achieved an extraordinarily high order intake in the previous year’s reference period.
The order backlog as of June 30 amounted to EUR6.84 Bn (+0.9% compared to December 31, 2016).
The EBITA in 1H/ 2017 was positively impacted by a one-off effect in the amount of around EUR25 Mn, which resulted mainly from the sale of Schuler’s technical center in Tianjin, China. It reached EUR207.3 Mn and was 13.3 per cent higher than the figure for the previous year’s reference period. As a result, profitability (EBITA margin) increased to 7.5 per cent. Excluding this one-off effect, profitability would have remained unchanged compared to the previous year at 6.6 per cent. In the second quarter of 2017, the EBITA amounted to EUR109.9 Mn (+10.9% compared to Q2/2016).
The net income (without non-controlling interests) increased in the first half of 2017 to EUR130.8 Mn.
Wolfgang Leitner, President and CEO of ANDRITZ AG, said, “We are satisfied overall with developments in the first half of the year, even though we were not able to reach all our targets in our business areas. As far as the markets we serve are concerned, we do not expect any substantial changes in project and investment activity for the remainder of the year.”
For 2017, ANDRITZ revised its sales forecast slightly and now expects a marginal decline in sales compared to 2016. From today’s perspective, profitability (EBITA margin) should at least reach the solid level of the previous year.