Now the usually tense economic situation is also making itself felt by the Styrian plant manufacturer Andritz. In the first half of the year, there was a lack of larger orders and turnover fell by three percent. However, profits were stable.
The leading company from the north of Graz announced its figures for the first half of the year on Thursday: Order intake fell by 18.4 percent, from 4.71 billion to 3.85 billion euros. Sales fell by three percent to 3.99 billion euros. The end result was a stable profit of 223.8 million euros, an increase of one percent compared to the same period last year.
Growth in green products
“Thanks to the growth of the service business and green products combined with solid order fulfillment, we were able to maintain our consolidated result at the prior-year level and slightly increase our profitability,” said CEO Joachim Schönbeck. However, due to the decline in incoming orders, “selective capacity adjustments” were initiated. The company also wants to focus on cost efficiency.
The Environment & Energy division saw a significant increase in turnover of 15.7 percent, the Pulp & Paper division saw a decrease of nine percent and the Hydropower division saw a decrease of 6.6 percent. The metal sector remained virtually unchanged with an increase of 0.2 percent.
The operating result (EBITA) moved only slightly in the first half of the year and amounted to 333 million euros, compared to 332.6 million euros in the same period last year. However, there was an increase in profitability: the EBITA margin rose from 8.1 to 8.4 percent.
No quick market recovery
The company does not expect the markets to recover quickly in the second half of the year. However, project activity has increased in some markets. “Based on the order book, the increasing demand for green products and the growth in the service sector, Andritz confirms the outlook for the 2024 financial year and expects stable sales and profitability (EBITA margin),” the company said.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
