Sales of the Hydraulic Machines/Other Operations Business Area developed favorably in 2004, increasing 39.9% to 43.8 MEUR (2003: 32.0 MEUR).  This is mainly due to the high Order Backlog at the end of 2003 and the positive development of the Andritz-Kenflo joint venture in China.

EBITA increased to 3.8 MEUR (2003: 3.3 MEUR).

Order Intake of the Business Area reached a record level in 2004, surpassing the record set in 2003 by 57,4%.  Order Intake was 58.7 MEUR, compared to 37.3 MEUR in 2003.  Major orders for water turbines and stock pumps were the main drivers for this successful development.  The 60:40 joint venture Andritz-Kenflo once again increased the number of stock pumps sold to paper mills, reaching a new record level.

In the area of turbines and pumps, the revision of Tanzmühle pump storage plant for the German utility company E.ON was completed on schedule and to the customer’s full satisfaction.  The storage plant was restarted in March.  As a result, the Business Area was able to book several follow-up orders in this market segment.

The first orders were received from Switzerland for Pelton runners manufactured with a new technique (milled from a single forged piece), and for automation systems.

Sales of centrifugal pumps in Europe developed better than expected, especially in the German market. The Business Area has entered the Russian and Brazilian markets with centrifugal pumps, and the first results are quite positive.

In China, the 60:40 joint venture Andritz-Kenflo has further strengthened its market leadership, winning nearly all stock pump contracts awarded in 2004.  In addition, the first ten pumps for flue gas desulphurization systems were sold in China, where this sector has been steadily growing over the past few years.

The services business in 2004 again proved to be a strong pillar of the Business Area’s operations. Rebuilds and modernizations of water turbines and turbine governors, spare parts for nuclear power stations, and centrifugal pumps for the pulp and paper industry accounted for a big portion of total Order Intake.