Andritz's hydro results up in Q1

8 May 2009

The company said earnings in Q1 from its hydro sector activities were higher than the same quarter of 2008, the order book grew and sales revenues were also higher.

It added, though, that there had been a 'significant increase' in order intake compared to Q1-'08. The order intake in the hydro activities was Euro574M (US$774M), a jump of 46.4% over last time and also 8% higher than Q4-'08. Order intake had good development in all divisions, including pumps and turbo generators.

Hydro was a key contributor to the improved order intake from China.

The hydro division also saw its order backlog increase by a third to Euro2.82B (US$3.8B) over Q1-'08.

Andritz's hydro activities also had better earnings before interest, taxes and appreciation (Ebita), which jumped 55% to Euro20.5M (US$27.6M). Taken before depreciation, the Ebitda result was then 47% up at Euro25.8M (US$34.8M).

Sales revenues in the period were nearly 46% up on last time to Euro317M (US$428M). Andritz also reported that in Q1 the service sales revenues as a share of total sales decreased from 26% to 23% compared to the same three months last year.

The company expects the 'good development' for hydro to continue, said president and chief executive, Wolfgang Leitner.

At the beginning of the year, the group rebranded its recently expanded, and consolidating, hydro activities under the name Andritz Hydro from VA Tech Hydro. Over 2006-8 the Andritz business acquired VA Tech Hydro, Tigep, and then in two steps the hydro activities of GE - first by buying the GEHI joint venture, which held the bulk.

The reported quarterly results did not break out the figures for continuing business in the group.

There were 5798 employees in the hydro division at the end of Q1.

At group level, Andritz reported the order backlog had improved 3.3% to Euro4.4B (US$5.9B) due to the hydro division. However, the group's overall order intake was down on last time and earnings were down slightly although revenues were up.

Since Q1, orders have included supplying a new 38.5MW bulb unit for the Iffezheim plant on the Rhine, in Germany.

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