October 23, 2008
Andritz Group announces long-term targets
On the occasion of the Andritz Capital Market Days 2008, Wolfgang Leitner, President & CEO of Andritz AG, announced the long-term targets for the international technology Group up to 2010/2011.
From today's perspective, sales are expected to rise to approximately EUR3.5 billion (US$4.46 million) and EBITA margin to increase compared to 2007. The actual extent of the increase depends on the further development of the global financial and economic crisis and its impact on customers and themselves, Leitner said.
Andritz Group's declared sales target for 2010/2011 to be EUR4.5 billion. Given their cash position of about EUR800 million (US$1020.8 million), the current financial crisis can also provide opportunities for Andritz to acquire interesting companies at very attractive terms.
Along with the growth in sales, Andritz also aims to increase profitability. The goal for Andritz Group is to achieve a sustainable EBITA margin averaging 7 percent over the economic cycle, with the target to reach 8 percent at the economic peak.
It is not predictable whether Andritz will already be able to improve the margin in 2009 given the current difficult economic environment.
Solid order backlog and the high sales contributions from business areas that are likely to be less affected by the general economic situation should help to mitigate, even if they cannot entirely prevent the impact Andritz may feel from a possible severe economic slowdown.