January 14, 2014

Andritz's additional financial provisions to affect earnings

In connection with supplies for a pulp mill in South America, Andritz announces that further financial provisions in the middle double-digit million euro range are necessary but will have a significant negative impact on the earnings of the Group in the fourth quarter of 2013, as well as on 2013 full year results.

The reasons for the provisions are additional project cost overruns resulting from strikes on the site and further incursion of expenses for construction. While there is reportedly no evidence of a need for more financial provisions during the current moment, such action cannot be excluded. Start-up of the plant is expected in the first quarter of 2014.

As a result of all the financial provisions made for the pulp project in South America in 2013, the earnings before interests, taxes and amortisation (EBITA) of the Andritz Group in 2013 is expected to reach approximately US$273 million and, after deduction of the provisions already announced in the third quarter of 2013 for structural improvement measures planned in the Schuler Group (acquired by Andritz in 2013), approximately US$219 million, respectively. Sales of the Andritz Group in 2013 are expected to amount to between US$7.8 billion and US$8 billion.

Order intake of the Group in the fourth quarter of 2013 amounted to approximately US$2 billion. Thus order intake of the Group in 2013 is expected to reach around US$7.5 billion. This is an increase of about 12% compared to the previous year.