The group said it did not expect to be negatively affected by the recent financial difficulties in the financial markets. It said that increased infrastructure spend could even result.

The hydro business has had an average EBITA margin of 6.9% over 2003-7, during which period it acquired va-tech Hydro. Specifically, at the beginning of the period the margin was 10.3%, stepping down to 8.7% and then 4.9% just before the acquisition.

andritz said the EBITA margin over 1998-2002 was 9.7%.

However, it is over the last two years, 2006-7, with the margin at 5.4%, that was also when the portfolio was most comparable to today. Prior to then the business also included non-hydro activities.

In cash terms, the EBITA last year was Euro49.5M, up from Euro25.1M in 2006. The performance was in low single figures in prior years.

Sales last year were Euro910M, up from the pro-forma re-stated figure of Euro752.6M for 2006 which allowed for va-tech-hydro contributions.

The last couple of years has seen major growth through acquisition for the group – VA Tech Hydro (2006), Tigep (2007) and earlier this year the GEHI joint venture, which held the bulk of GE’s hydro business, and also the remnant activities of GE.

The group is looking for average sales growth of 10% annually following the integration of the recent major acquisitions.

It plans to use the GE experience to broaden its market coverage, principally for Francis turbines.