Leading economic researchers expect the global economy to continue to grow in 2006. While the USA and Southeast Asia, especially China, should remain the key growth drivers of this global economic expansion, Euroland’s economy is expected to develop only moderately in 2006.

In pulp and paper, project activity will remain concentrated on South America and Asia, where several greenfield pulp mills and major modernization projects are currently being evaluated. For Europe and North America, only selective investments are expected.

In the area of Rolling Mills and Strip Processing Lines, investment activities will continue to focus on China. Project activity will concentrate on production equipment and plants for high-quality steel, and on downstream production equipment to produce stainless steel products. In China, demand for such products, which are, for example, used for applications in the automotive and household appliance industries, grows at double-digit rates each year. In addition, the goal of China to modernize and consolidate its domestic steel industry by 2010 will support long-term demand for steel production equipment.  Increased project activity is also expected for India.

For Environment and Process, high project activity for both sludge dewatering and drying equipment should continue. Increased stringent environmental regulations, especially in Europe, will remain the key growth drivers in the future. In the area of mining, the current global shortage of raw materials, such as coal, iron ore, and other minerals should lead to increased investments in solid/liquid separation equipment.  

Given the very high Order Backlog as of the end of 2005 and the solid expectations for the global economy and Andritz’s relevant markets, Andritz expects Sales and Net Earnings in 2006 to increase compared to 2005. However, a potential or unexpected major economic downturn of the global economy might have a negative effect on the financial development of Andritz in 2006.