The financial results developed very favorably during the reporting period.  As a result of increased execution of some major orders and the growth of the services business, Sales increased by 9.2% to 884.6 MEUR (2003: 810.3 MEUR).

Due to increased Sales, the favorable development of the services business and continued cost optimization measures, EBITA of the Business Area surged 32.0% to 64.8 MEUR in 2004 (2003: 49.1 MEUR).  Profitability expressed as EBITA margin increased from 6.1% in 2003 to 7.3% in 2004.

The integration of Fiedler GmbH of Germany acquired in September 2003 progressed very favorably in 2004.  This acquisition made Andritz one of the leading global suppliers of screen baskets and rotors.  A result of the synergies is the new wedgewire screen basket - the BarTec™ Wedgewire - which utilizes the strengths of the Andritz FiberSentry™ and the former Fiedler Strong-Bar^©.  The new basket will be introduced to customers in the First Quarter of 2005.

Andritz and Rheinhold & Mahla AG of Germany, a leading provider of industrial services in Europe, formed a joint venture (European Mill Service GmbH) to provide a broad range of industrial maintenance services and long-term maintenance contracts for pulp, paper, and panelboard mills in Europe.  This is consistent with customer requirements to increasingly outsource support services, such as maintenance, to competent external suppliers.

Andritz strengthened its ability to serve the growing market in Chile by providing local contact points with Chilean customers.  A new office for capital sales and project management was established in Santiago. Andritz also enlarged the service office in Concepción.  The office now provides spare parts sales, field services, technical assistance, and the sale of engineered wear parts for pulp mills, paper mills, and MDF plants in Chile.  

Following a successful period of joint research, development, and marketing in the field of tissue machines, Andritz and Voith have decided to change their existing cooperation.  As part of this, Voith Andritz Tissue LLC, Janesville, WI, USA, the joint venture company which was founded to serve the NAFTA tissue market, will continue as Andritz Tissue Inc., supplying tissue machines to US, Canadian and Mexican customers with the same tissue professionals.  Andritz Tissue Inc. will be a 100% affiliate of Andritz in 2005, as part of the Tissue Machines Division.

The large single-line chemical recovery plant supplied by Andritz for Wisapower at UPM-Kymmene’s Pietarsaari mill in Finland started very successfully in early April.  Guaranteed production was achieved after only five days, and a new record for pulp production was reached within a week of operation.  Andritz’s delivery included a new recovery boiler, evaporation plant, and white liquor plant.  

Andritz chemical recovery systems were successfully started up in July at Mercer's Zellstoff Stendal mill, a greenfield Kraft pulp mill constructed in the Saxony region of Germany.  Andritz supplied the black liquor evaporator plant, the chemical recovery boiler, and a complete recausticizing system for the production of white liquor.  The Stendal mill is fulfilling the most stringent environmental requirements.

In 2004, the Business Area booked a record level of orders.  At 1,218.9 MEUR, Order Intake increased by 42.2% compared to 2003 (857.3 MEUR).  The surge is mainly due to the receipt of the large order from CMPC Celulosa S.A., worth approximately 320 MEUR.