ANDRITZ GROUP: Results for the first quarter of 2021

Wolfgang Leitner, President & CEO of ANDRITZ AG: “We are very pleased with business development in the first quarter of 2021. In particular, the development of order intake, which provides the basis for future revenue and earning development, makes us feel positive. With regard to the development of the markets we serve, we remain cautiously optimistic for the coming months and expect solid project and investment activity overall.”

The key financial figures developed as follows during the reporting period:
- Order intake amounted to 1,729.5 million euros (MEUR) and was thus only 6.7% below the previous year’s reference period (Q1 2020: 1,852.9 MEUR), which included a large-scale order in the Pulp & Paper business area. In particular, the Metals and Hydro business areas were able to increase their order intake significantly compared to the previous year’s reference period. Order intake for the service business also saw very favorable development, rising significantly compared to the preceding quarters.
- The order backlog as of March 31, 2021, amounted to 7,071.3 MEUR and has thus risen compared to the end of 2020 (December 31, 2020: 6,774.0 MEUR).
- Revenue at 1,493.2 MEUR, was only 1.1% lower than in the previous year’s reference period (Q1 2020: 1,510.2 MEUR). This is largely attributable to the Metals business area, where revenue declined due to the lower order intake in the past year.
- Despite the slightly lower revenue, the operating result (EBITA) increased significantly compared to the previous year, amounting to 110.9 MEUR (+58.2% versus Q1 2020: 70.1 MEUR). As a result, the Group’s profitability (EBITA margin) increased to 7.4% (Q1 2020: 4.6%). This is mainly due to the continuing good business development in the Pulp & Paper business area, which succeeded in increasing its profitability slightly compared to the previous year. Furthermore, earnings in the Metals business area improved significantly, above all due to the positive impact of the cost adjustment measures implemented in the previous year.
- The earnings before interest and taxes (EBIT) increased to 96.4 MEUR (Q1 2020: 53.8 MEUR), while the net income (without non-controlling interests) practically doubled compared to the previous year’s reference period, reaching 62.1 MEUR (Q1 2020: 31.5 MEUR).

FINANCIAL GUIDANCE FOR 2021 CONFIRMED
Regarding the business development for full-year 2021, ANDRITZ confirms the expectations voiced on the occasion of the publication of the 2020 financial results in March 2021 and expects – due to a reduced order intake in 2020 – slightly lower revenue (2020: 6,699.6 MEUR) compared to the previous year and an increase in EBITA reported (2020: 391.7 MEUR). The EBITA adjusted by extraordinary items should remain roughly stable compared to the previous year (adjusted EBITA 2020: 471.1 MEUR), depending on how revenue develops.

If the global economic recovery expected by market researchers for 2021 does not take place or the pandemic intensifies again, this may result in negative effects on the processing of orders and on order intake and hence, a negative impact on ANDRITZ’s financial development. This could lead to financial provisions for additional adjustment measures in individual business areas, which could have a negative effect on the ANDRITZ GROUP’s earnings and require a revision of the guidance.