Andritz Cautions on Orders After Hydropower Turbine Intake Drops
Andritz AG (ANDR), the world’s second- biggest hydropower turbine maker, said it’s unclear how many large contracts it will get after third-quarter orders dropped.
Orders fell 1.2 percent to 1.24 billion euros ($1.6 billion), the Graz, Austria-based company said today in a statement. Net income dropped 5.6 percent to 58.5 million euros as sales gained 7.9 percent to 1.27 billion euros. Analysts had forecast 60.4 million euros net income on revenue of 1.27 billion euros, according to estimates compiled by Bloomberg.
“The visibility of upcoming projects and the award of orders have shortened significantly, particularly for large- scale investments,” Chief Executive Officer Wolfgang Leitner said in the statement. The company said it expects sales to rise to about 5 billion euros this year.
Andritz, which has risen 49 percent this year on the Vienna stock exchange, has been expanding outside Austria to boost sales and profit. It won contracts to supply equipment in countries including China and Laos in the last quarter. Andritz this year took over Schuler AG, a German maker of metal-forming machines.
While Andritz said this year’s earnings are expected to top 2011, the company cautioned investors about the future.
“If the global economy should deteriorate further in the coming months, this may have a negative impact on the Group’s earnings,” Andritz said.
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