2004 - ANDRITZ Vertical volute pumps

STATUS
REPORT
GENERAL ECONOMIC CONDITIONS
The year 2004 was characterized by a global
economic recovery, with the US showing a much
faster and sustained growth than Euroland.
According to preliminary figures, Gross Domestic
Product (GDP) of the USA grew at an annualized
rate of 4.6% in 2004. Although economic growth
was primarily based on consumption of private
individuals, who contribute approximately twothirds
of total economic spending, the economic
upturn was also somewhat based on increased
capital expenditures by corporations. Due to
this economic development, the Federal Reserve
Board (the FED) increased key interest rates in
several steps from 1% at the beginning of January
to 2.25% by the end of the year.
The economy in Euroland developed in a similar
fashion, although much more moderately. GDP
grew by approximately 1.8% compared to 2003.
Continued weak domestic demand and the rise
of the Euro against the US dollar, which dampened
export activities, were the main burdens to
growth.
China’s economy continued its strong growth
shown during the last few years also in 2004.
The measures of the Chinese government to slow
down over-investment in some economic sectors,
e.g. in the steel or cement industries, have shown
the desired effects, with the risk of overheating
clearly reduced. Nevertheless, overall economic
growth of China remained very substantial during
the reporting year.
Sources: OECD, WIFO
STATUS REPORT
BUSINESS DEVELOPMENT
Increase in Sales
Sales of the Andritz Group in 2004 developed
very favorably. As a result of the execution of the
high Order Backlog as of the end of last year, the
growth of the services business, and Sales contributions
from the companies acquired in 2004,
Sales increased by 20.9% to 1,481.3 MEUR
(2003: 1,225.0 MEUR). In particular, the Pulp and
Paper, Rolling Mills and Strip Processing Lines,
and Environment and Process Business Areas
increased their Sales significantly compared to
2003. Sales of the Feed Technology Business
Area were only slightly higher than in the previous
year, mainly as a result of weak market conditions
and the decline of the US dollar against the Euro,
which led to negative translation effects, especially
for this Business Area.
Sales of the companies/business areas acquired
in 2004 (Bird Machine, NETZSCH Filtration, Kaiser,
and VA TECH WABAG’s fluidized bed drying systems
Business Area), which were not included in
the financial statements of 2003, added approximately
96 MEUR to the Group’s total Sales in
2004. Organic Sales growth of the Group therefore
was approximately 13%.
Order Intake and Order Backlog at record
levels
Order Intake of the Andritz Group reached an
historic record level in 2004. Due to the very
favorable business development in almost every
Business Area, Group Order Intake surged from
1,394.4 MEUR in 2003 to 1,837.0 MEUR in 2004,
an increase of 31.7%. Order Intake in the Fourth
Quarter of 2004, at 768.5 MEUR, reached an
extraordinarily high level. In particular, the Pulp and
ANDRITZ 2004
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