Business development*)
Sales of the Business Area for 2006 amounted to 467.9 MEUR of which 390.2 MEUR came from first-time consolidated VA TECH HYDRO. Excluding VA TECH HYDRO, Sales of the Business Area would have been 77.7 MEUR, significantly up compared to 2005 (52.7 MEUR). This is mainly due to the continued positive development of Andritz’s Pumps business.
EBITA of the Business Area in 2006 was 22.2 MEUR; the profitability (EBITA margin) amounted to 4.7% (2005: 4.9%). Profitability of VA TECH HYDRO developed as planned and amounted to 3.7% in the Second Half of 2006.
Order Intake of the Business Area in 2006 amounted to 585.4 MEUR, of which 474.4MEUR resulted from the first-time consolidation of VA TECH HYDRO. All Divisions of the Business Area – Large Hydro, Hydro Services, Compact Hydro, Pumps, and Generator Turbo – showed a very solid and satisfactory development.
Excluding VA TECH HYDRO, Order Intake of the Business Area would be 111.0 MEUR, significantly up compared to 2005 (71.5 MEUR). In particular, the Pumps Division continued its very successful development in 2006, with the number of stock pumps sold to pulp and paper mills reaching a new record level.
Acquisition of VA TECH HYDRO
In April 2006, Andritz purchased the hydropower section of VA TECH HYDRO from Siemens Austria. After obtaining the approvals from the relevant anti-trust authorities, the acquisition of VA TECH HYDRO was successfully concluded at the end of May 2006. Andritz VA TECH HYDRO ranks among the world’s top three suppliers for hydropower equipment. Integration of the company into the Andritz Group has been started.
*) VA TECH HYDRO was consolidated into the financial accounts of the Andritz Group for the first time in Q3 2006.
For the reference periods of last year, no pro-forma figures are available.