International technology group Andritz showed solid business development overall – although mixed by business area – in the third quarter of 2018. Order intake and sales increased compared to the previous year, however earnings were below the figure for last year’s reference period. The group expects unchanged stable development of sales in 2018.

Order intake at €1,468.7 million was 9.5 per cent higher than the previous year’s reference period (Q3 2017: €1,341.2 million) in the third quarter of 2018 and thus continued the favourable development of the preceding quarters. As a result, order intake in the first three quarters of 2018 developed very favourably, rising to €4,738.0 million. This is an increase of 15.2 per cent compared to the previous year’s reference period (Q1-Q3 2017: €4,112.5 million); all four business areas were able to increase their order intake compared to the previous year.

The order backlog as of September 30, 2018 amounted to €6,882.8 million and increased by 7.8 per cent compared to the end of 2017 (€6,383.0 million) as a result of the higher order intake in the preceding quarters.

Sales rose in the third quarter of 2018 by 5.4 per cent compared to the previous year’s reference period (Q3 2017: €1,364.6 million) to reach €1,437.7 million. This more than compensated for the slight decline in sales in the first half year, with the result that sales in the first three quarters of 2018, at 4,200.8 million, were slightly higher than the level of the previous year’s reference period (+1.4 per cent compared to Q1-Q3 2017: €4,143.6 million).

The net income (without non-controlling interests) fell in the third quarter of 2018 to €56.4 million (Q3 2017: €59.0 million). In the first three quarters of 2018, the net income (without non-controlling interests) amounted to €157.0 million (Q1-Q3 2017: €189.8 million).

The Andritz Group expects unchanged stable development of sales in the 2018 business year as compared to the previous year. In the fourth quarter, provisions amounting to well above €20 million will be made for necessary cost adjustment measures, particularly in the Metals business area. The group expects profitability (EBITA margin) for 2018 to almost reach the previous year’s level.

“We succeeded in booking an aggregated order intake of over €6.2 billion in the past four quarters and thus have a solid order backlog for the coming business year. Integration of the companies we acquired this year – in particular, Xerium Technologies – and selective cost adjustment measures in some business areas will be the main focus in the coming months,” said Andritz president & CEO Wolfgang Leitner. (RKS)