Business development
In 2006, Sales of the Business Area surged to 1,304.2 MEUR, an increase of 26.3% over 2005 (1,032.9 MEUR). In line with Sales, EBITA also increased, to 75.9 MEUR (2005: 63.6 MEUR). Profitability (EBITA margin) was 5.8%, slightly lower than in 2005 (6.2%). This was mainly due to the execution of some larger orders, typically having lower margins.
The Business Area’s Order Intake showed very good development in 2006. It increased to 1,432.4 MEUR, which is 40.8% higher than in 2005 (1,017.0 MEUR). All Divisions of the Business Area contributed to this very high growth, thus confirming the excellent market position of Andritz for pulp and paper equipment.
New Managing Board members
At the beginning of October 2006, the Supervisory Board of Andritz AG approved changes in the Managing Board of Andritz AG. After 15 years on the Board, Bernhard Rebernik will, upon reaching the age of 65, leave the Managing Board at the end of March 2007 and retire. Markku Hänninen, on the Board since 2002, also resigned as a member of the Managing Board at the end of December 2006 and will join the Supervisory Board of the Finnish subsidiary Andritz Oy. Karl Hornhofer and Humbert Köfler, who have served as Andritz Divisional Managers for many years, have been appointed new members of the Andritz Managing Board as of January and April 2007, respectively.
New market-oriented organization structure
In order to better fulfill the expectations of Andritz’s customers, the Pulp and Paper Business Area was divided into two segments (Capital Equipment and Service) as of January 1, 2007. Karl Hornhofer is responsible for the Capital Equipment segment and Humbert Köfler for Service. The goal is to further improve coordination between different product groups and benefit from opportunities in local service markets.
Acquisitions and product developments further strengthen market position
In June 2006, Andritz purchased the remaining 40% stake in the Paper and Nonwoven Business Areas of Eduard Küsters Maschinenfabrik GmbH & Co. KG from Jagenberg AG. Andritz Küsters, now 100% owned by Andritz, offers state-of-the-art calendering, press-dewatering, and finishing technologies for the paper and fast-growing nonwoven markets.
In May 2006, Andritz acquired Pilão S.A., São Paulo, Brazil, a special manufacturer of welded refiner fillings and stock preparation equipment, including conical refiners. Andritz Pilão further enhances Andritz’s product portfolio in low-consistency refiners and increases the business volume of Paper Mill Services products and stock preparation equipment, particularly in South America.
With the acquisition of the rights for the worldwide chip thickness screening business of the Finnish company BMH Wood Technology Oy, Andritz strengthened its position as a leading supplier of wood processing equipment and services.
Andritz also purchased the Coater Division of Bachofen + Meier AG (BMB), based in Bülach, Switzerland. BMB is a globally active specialist for technologies and systems for paper coating. It complements the existing Andritz product portfolio in the area of paper and board production equipment, enabling Andritz to offer complete systems including hard and soft nip calenders, coating, and drying equipment.
In the spring of 2006, Andritz launched a new tissue machine concept, the PrimeLineCOMPACT. It combines proven Andritz technologies for stock preparation, tissue production, and automation into a cost-effective system. Andritz created a design based upon standardized 1,600, 1,800, and 2,000 m/min tissue machines, with widths of 2.7–2.85 m. Virgin or recycled fibers can be used.