2004 - ANDRITZ Vertical volute pumps

16
STATUS REPORT
Paper Business Area received several large orders
(including the large order from CMPC in Chile at
approximately 320 MEUR, and the supply of two
new recovery boilers to SCA and Weyerhaeuser
at approximately 130 MEUR). Order Intake of
the Environment and Process Business Area also
increased significantly compared to 2003, mainly
due to contributions from newly acquired companies,
and the favorable development of the centrifuge
business.
Order Intake of Bird Machine, NETZSCH filtration,
VA TECH WABAG’s fluidized bed drying
systems Business Area, and Kaiser, which were
not included in the Order Intake figure of last year,
amounted to approximately 106 MEUR in 2004.
As a consequence of excellent Order Intake, the
Group’s Order Backlog reached a record level of
1,439.2 MEUR at the end of 2004 (31.12.2003:
1,053.6 MEUR). This provides a solid workload for
the Andritz Group in 2005.
Significant increase in Earnings
As a result of increased Sales, ongoing cost
optimization programs, and positive Earnings contributions
from some of the newly acquired companies,
the Group’s Earnings Before Interest,
Taxes, Depreciation, and Amortization of Goodwill
(EBITDA) surged from 84.4 MEUR in 2003 to 115.4
MEUR in 2004. With the exception of the Feed
Technology Business Area, whose Earnings were
affected by internal restructuring costs and weak
market conditions, every Business Area increased
its Earnings and profitability compared to last year.
Group profitability expressed as EBITDA margin
improved from 6.9% in 2003 to 7.8% in 2004.
EBIT (Earnings Before Interest and Taxes)
increased by 55.6% to 76.1 MEUR (2003: 48.9
MEUR). The lower tax rate compared to 2003
results from lower deferred taxes due to the
Austrian 2005 tax reform. Net Income after the
deduction of Minority Interests amounted to 53.4
MEUR (2003: 29.1 MEUR).
ANDRITZ 2004
Cash flow and CAPEX
Cash flow from operating activities amounted to
208.0 MEUR in 2004, increasing significantly compared
to last year (2003: 4.6 MEUR). Investments
in tangible and intangible assets amounted to 29.4
MEUR (20.5 MEUR).
Net worth position and capital structure
The balance sheet as of 31.12.2004 shows no
major changes compared to 31.12.2003.
Net liquidity (cash and cash equivalents minus
interest-bearing financial liabilities) as of 31.12.2004,
at 219.6 MEUR, almost quadrupled compared to
the reference date of last year (31.12.2003: 55.0
MEUR). With an equity ratio of 23.4% as of
31.12.2004 (24.0% as of 31.12.2003), the Andritz
Group has a solid and balanced financial structure.
Effects from exchange rates
In 2004, approximately 35% of the Andritz
Group’s Sales were denominated in US dollars.
Although the Group attempts to hedge the net
currency exposure of each individual order to
mitigate the risk of currency fluctuations, changes
in exchange rates could result in the recognition
of exchange losses in the Group’s financial statements
and in translation effects on Order Intake,
Sales, and Earnings.
In 2004, the strength of the Euro against the
US dollar (the average exchange rate increased
by 9.9% in 2004) led to a shortfall in Group Sales
of approximately 24 MEUR and in Order Intake of
approximately 32 MEUR. At unchanged Euro/US
dollar exchange rate, EBITA would have been
approximately 1 MEUR higher.