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Andritz Group, Austria
COMPANY PROFILE
Andritz Group, Austria Profile
The Andritz Group is a global supplier of customized plants, systems and services for a range of engineering industries. The Group’s activities are focused in five business areas: Pulp and Paper; Rolling Mills and Strip Processing Lines; Environment and Process; Feed Technology; and Hydraulic Machines/Other activities. Its filtration activities are concentrated in its Environment and Process segment, its third largest business unit that accounts for approximately 15% of total sales. This business develops and manufactures systems for treating wastewater, sewage and industrial sludge. Analysis
The Andritz Group had a successful year in 2007 posting records for sales, net income and order intake. Group sales were up 21.1% on the year earlier at 3282.5 million with organic growth contributing 9.4 percentage points of the total. Sales performance was strongest in the company’s Pulp and Paper, Hydro Power, and Feed and Biofuel business areas. The group’s key filtration business unit, Environment and Process, saw its sales drop 1% on the year earlier figure to 364.5 million. Andritz’s order intake for the year increased 30% on its 2006 performance to 3749.5 million, with its Rolling Mills and Strip Processing Lines, Hydro Power, and Feed and Biofuel business units showing strong organic growth. Order intake for the Environment and Process segment was virtually unchanged on the year earlier at 346.9 million, with good organic growth in the Separation Technologies division cancelled out by a decline in the Thermal Process Technologies section. Among the major orders received by the Separations Technologies division were: two large filter presses for a titanium dioxide plant in the Ukraine; six large filter presses for dewatering kaolin from Brazilian customers; and four hyperbaric filters for fine coal dewatering in the Ukraine and China. The increase in total orders saw Andritz’s yearend order backlog rise 13% on the 2006 figure to reach 3843.3 million, although the figure was down 10% in the Environment and Process segment to 161.1 million. In step with sales, the group’s EBITDA was up 25% on the previous year at 242 million, while the EBITDA margin improved from 7.2% to 7.4%. In the Environment and Process segment, EBITDA was up 18% to 30.3 million, while the EBITDA margin rose from 7.0% to 8.3%. During 2007 Andritz acquired Hungarian firm Tiszakécskei Gépgyár and a 50% stake in Sindust Human Technology, further strengthening its Hydro Power and Pulp and Paper business units. Key Figures ( million) Andritz Group Order Intake Of Which: Environment and Process
COMMENT During the last decade, the Andritz Group has enjoyed strong growth that has averaged approximately 19% per annum. This expansion has been built on both organic growth, which has been in the region of 12% per year, as well as a targeted programme of acquisitions. Andritz’s organic growth is built on an investment of around 3% per year on R&D. Research work in the Separation Technologies Division, part of Andritz’s Environment and Process business unit, currently includes efforts to optimise its centrifuge product range in order to further enhance performance and/or reduce manufacturing costs, as well as standardizing its filter press product family in order to shorten delivery times and reduce costs. The Environment and Process business unit now has an installed base of products and systems that includes more than 10 000 centrifuges, 10 000 filter presses, and more then 100 sludge drying lines worldwide. For fiscal 2008, one of Andritz’s main aims is to process its very high order backlog successfully. The company expects total sales to increase organically to approximately 3.5 billion, while its goal is to attain an EBITA margin of 7%. Since the beginning of the year the company has also acquired part of GE Energy’s Hydro business and its majority interest in GE Hyrdo Inepar do Brasil SA. ■
2007
Year ended 31.12 2006
2005
2004
3750
2891
1975
1837
1394
346.9
344.2
340.1
200.7
110.2
2003
Sales Of Which: Environment and Process
3283
2710
1744
1481
1225
364.5
366.5
289.2
217.9
110.4
Cost of Materials
1986
1645
1084
866
676
Personnel and Other Operating Expenses
677
517
601
532
481
Operating Result (EBIT)
193
160
107
76
49
Net Income
136
121
80
54
31
Employees
5943
5314
4771
4601
4545
Return on Equity (%)
24.3
19.5
13.0
12.2
15.4
Contact Details
Chairman: President and CEO: Address:
8
Filtration Industry Analyst
Kurt Stiassny Wolfgang Leitner Stattegger Strasse 18 A-8045 Graz Austria
Tel: +43 316 6902 2722 Fax: +43 316 6902 465 Web: www.andritz.com
September 2008
Andritz Group, Austria Profile
The Andritz Group is a global supplier of customized plants, systems and services for a range of engineering industries. The Group’s activities are focused in five business areas: Pulp and Paper; Rolling Mills and Strip Processing Lines; Environment and Process; Feed Technology; and Hydraulic Machines/Other activities. Its filtration activities are concentrated in its Environment and Process segment, its third largest business unit that accounts for approximately 15% of total sales. This business develops and manufactures systems for treating wastewater, sewage and industrial sludge. Analysis
The Andritz Group had a successful year in 2007 posting records for sales, net income and order intake. Group sales were up 21.1% on the year earlier at 3282.5 million with organic growth contributing 9.4 percentage points of the total. Sales performance was strongest in the company’s Pulp and Paper, Hydro Power, and Feed and Biofuel business areas. The group’s key filtration business unit, Environment and Process, saw its sales drop 1% on the year earlier figure to 364.5 million. Andritz’s order intake for the year increased 30% on its 2006 performance to 3749.5 million, with its Rolling Mills and Strip Processing Lines, Hydro Power, and Feed and Biofuel business units showing strong organic growth. Order intake for the Environment and Process segment was virtually unchanged on the year earlier at 346.9 million, with good organic growth in the Separation Technologies division cancelled out by a decline in the Thermal Process Technologies section. Among the major orders received by the Separations Technologies division were: two large filter presses for a titanium dioxide plant in the Ukraine; six large filter presses for dewatering kaolin from Brazilian customers; and four hyperbaric filters for fine coal dewatering in the Ukraine and China. The increase in total orders saw Andritz’s yearend order backlog rise 13% on the 2006 figure to reach 3843.3 million, although the figure was down 10% in the Environment and Process segment to 161.1 million. In step with sales, the group’s EBITDA was up 25% on the previous year at 242 million, while the EBITDA margin improved from 7.2% to 7.4%. In the Environment and Process segment, EBITDA was up 18% to 30.3 million, while the EBITDA margin rose from 7.0% to 8.3%. During 2007 Andritz acquired Hungarian firm Tiszakécskei Gépgyár and a 50% stake in Sindust Human Technology, further strengthening its Hydro Power and Pulp and Paper business units. Key Figures ( million) Andritz Group Order Intake Of Which: Environment and Process
COMMENT During the last decade, the Andritz Group has enjoyed strong growth that has averaged approximately 19% per annum. This expansion has been built on both organic growth, which has been in the region of 12% per year, as well as a targeted programme of acquisitions. Andritz’s organic growth is built on an investment of around 3% per year on R&D. Research work in the Separation Technologies Division, part of Andritz’s Environment and Process business unit, currently includes efforts to optimise its centrifuge product range in order to further enhance performance and/or reduce manufacturing costs, as well as standardizing its filter press product family in order to shorten delivery times and reduce costs. The Environment and Process business unit now has an installed base of products and systems that includes more than 10 000 centrifuges, 10 000 filter presses, and more then 100 sludge drying lines worldwide. For fiscal 2008, one of Andritz’s main aims is to process its very high order backlog successfully. The company expects total sales to increase organically to approximately 3.5 billion, while its goal is to attain an EBITA margin of 7%. Since the beginning of the year the company has also acquired part of GE Energy’s Hydro business and its majority interest in GE Hyrdo Inepar do Brasil SA. ■
2007
Year ended 31.12 2006
2005
2004
3750
2891
1975
1837
1394
346.9
344.2
340.1
200.7
110.2
2003
Sales Of Which: Environment and Process
3283
2710
1744
1481
1225
364.5
366.5
289.2
217.9
110.4
Cost of Materials
1986
1645
1084
866
676
Personnel and Other Operating Expenses
677
517
601
532
481
Operating Result (EBIT)
193
160
107
76
49
Net Income
136
121
80
54
31
Employees
5943
5314
4771
4601
4545
Return on Equity (%)
24.3
19.5
13.0
12.2
15.4
Contact Details
Chairman: President and CEO: Address:
8
Filtration Industry Analyst
Kurt Stiassny Wolfgang Leitner Stattegger Strasse 18 A-8045 Graz Austria
Tel: +43 316 6902 2722 Fax: +43 316 6902 465 Web: www.andritz.com
September 2008