International technology Group ANDRITZ showed solid business development in the first half of 2014 in a still challenging overall economic environment.

• Sales increased slightly to 2,659.4 MEUR in the first half of 2014 (+1.9% versus H1 2013: 2,610.1 MEUR); this increase is attributable to the Schuler Group, which only contributed four months to the previous year’s reference period (first-time consolidation as of March 1, 2013). Sales in the second quarter of 2014, at 1,439.9 MEUR, almost reached the reference figure of last year (-0.4% versus Q2 2013: 1,446.3 MEUR).

• The order intake amounted to 2,980.2 MEUR in the first half of 2014 and was thus well above the previous year’s reference figure (+18.0% versus H1 2013: 2,526.0 MEUR). This significant increase is mainly due to the good order intake in the PULP & PAPER and METALS business areas in the first quarter of 2014. The order intake in the second quarter of 2014, at 1,238.0 MEUR, was practically unchanged compared to the level in the second quarter of 2013 (1,237.7 MEUR).

• As of June 30, 2014, the order backlog amounted to 7,555.7 MEUR which is an increase of 2.3% compared to the end of last year (December 31, 2013: 7,388.5 MEUR).

• In the first half of 2014, the EBITA amounted to 133.4 MEUR (+37.7% versus H1 2013: 96.9 MEUR) and the EBITA margin was 5.0% (H1 2013: 3.7%). Thus, earnings were significantly above the low reference figure for the previous year, which was strongly negatively impacted in the first quarter of 2013 by high provisions booked for a pulp mill project in South America. In the second quarter of 2014, the EBITA amounted to 84.8 MEUR and was thus 2.5% above the figure for the second quarter of 2013 (82.7 MEUR). The EBITA margin slightly increased to 5.9% (Q2 2013: 5.7%).

• The net income reached 66.7 MEUR in the first half of 2014 and was thus well above the very low reference figure for the previous year (+42.2% versus H1 2013: 46.9 MEUR).

ANDRITZ President and CEO Wolfgang Leitner: “Given the overall economic situation and the competitive environment, order intake and sales of the ANDRITZ GROUP saw solid development. We achieved a significant improvement in earnings compared to the previous year’s reference period, although further improvements are necessary to reach our target figures. We expect unchanged project activity in the markets we serve for the current second half of the year.”

Based on the business development so far, the order backlog, and – compared to 2013 – additional two months sales contribution by the Schuler Group, ANDRITZ expects a slight rise in sales in the 2014 business year compared to the previous year. Net income is expected to show a significant improvement compared to the low level of 2013.