ANDRITZ GROUP: Results for Q2 and H1 2021

Wolfgang Leitner, President and CEO of ANDRITZ AG: “We are very pleased with business development in the first half year. All four of our business areas saw good order intake development and secured important reference orders. In spite of the slightly lower revenue due to the lower order intake for the full year of 2020, we have succeeded in achieving a significant rise in profitability. We are also cautiously optimistic regarding the remaining months of the current year and expect solid project and investment activity in all our business areas.”

The key financial figures developed as follows:
- In the second quarter of 2021, order intake at 1,862.3 MEUR was significantly higher than the very low level of the previous year’s reference period, which was severely impacted by the Covid pandemic (+57.3% versus Q2 2020: 1,183.8 MEUR). The Metals and Hydro business areas, in particular, were able to increase their order intake compared to the previous year’s reference period. Order intake of the ANDRITZ GROUP in the first half of 2021 amounted to 3,591.8 MEUR and increased significantly compared to the previous year’s reference period (+18.3% versus H1 2020: 3,036.7 MEUR).
- The order backlog as of June 30, 2021 amounted to 7,403.5 MEUR and increased by 9.3% compared to the end of 2020 (6,774.0 MEUR).
- Due to the lower order intake for the full year of 2020, revenue in the second quarter of 2021 dropped to 1,533.8 MEUR, a decline of 7.8% compared to the reference quarter of last year Q2 2020: 1,662.8 MEUR). This is largely attributable to a decline in revenue in the Pulp & Paper Capital segment, where the previous year’s reference period was very high due to processing of some larger orders that have now been largely completed and thus have low revenue contribution. Revenue of the ANDRITZ GROUP in the first half of 2021 amounted to 3,027.0 MEUR and fell by 4.6% compared to the previous year’s reference period (first half of 2020: 3,173.0 MEUR).
- The EBITA amounted to 126.8 MEUR in the second quarter of 2021, increasing significantly compared to the previous year’s reference period (Q2 2020: 104.2 MEUR) in spite of the lower revenue. Thus, profitability (EBITA margin) increased to 8.3% (Q2 2020: 6.3%). All four business areas were able to increase profitability – some of them substantially – compared to the previous year’s reference period as well as to the previous quarter. The EBITA of the ANDRITZ GROUP amounted to 237.7 MEUR in the first half of 2021 and was significantly higher than the level of the previous year’s reference period (+36.4% versus H1 2020: 174.3 MEUR).
- The financial result in the second quarter of 2021 amounted to -5.8 MEUR and improved compared to the previous year’s reference period (Q2 2020: -8.9 MEUR).
- As a result, net income (without non-controlling interests) increased in the second quarter of 2021 to 74.6 MEUR (Q2 2020: 53.4 MEUR). In the first half of 2021, the net income (without non-controlling interests) amounted to 136.7 MEUR (H1 2020: 84.9 MEUR).

OUTLOOK FOR 2021: SLIGHTLY LOWER REVENUE, INCREASED PROFITABILITY
Economic experts expect the global economy to continue its recovery also in the remaining months of 2021. In this environment, the markets served by ANDRITZ should also continue to see positive development.

On the basis of earnings development in the first half of 2021, ANDRITZ now expects – from today’s perspective – a significant increase in the EBITA reported compared to the previous year and profitability (EBITA margin reported) of around 8% (EBITA margin reported in 2020: 5.8%) for the full year of 2021. From today’s perspective, no major extraordinary items are expected for 2021. A slight decline is anticipated in revenue for the full year of 2021 compared to the previous year.

If further recovery by the global economy, as expected by market researchers for 2021, is delayed or the pandemic intensifies again, this may result in negative effects on the processing of orders and on order intake and hence have a negative impact on ANDRITZ’s financial development. This could lead to capacity adjustments – financial provisions for additional adjustment measures in individual business areas – that could have a negative impact on the ANDRITZ GROUP’s earnings. Similarly, further increases in the price of raw materials or bottlenecks in the global supply chains could have a negative effect on the Group’s earnings development.