ANDRITZ, based in Austria, recently publicised its long-term corporate goals.
The announcement was delivered at the ANDRITZ Capital Market Day 2010, by Wolfgang Leitner, President and CEO of ANDRITZ AG, who confirmed, “The ANDRITZ GROUP’s financial goals are to achieve a sustained average EBITA margin of 7% over the cycle and Group sales of approximately €4.5bn by 2013/2014.”
This reflects the 2008 sales target, also of €4.5bn, which was postponed until after the global financial and economic crisis.
Leitner reflected on the past year, “In the past ten years, ANDRITZ has increased Group sales by over 15% per annum, and the EBITA margin has risen from 4.7% in 2000 to 6.3% in the first half of 2010.”
Looking towards the future, he remarked, “From today’s point of view, we expect a slight recovery of the global economy over the next few years. Based on these expectations and in view of the cost reduction measures implemented last year as well as the solid order intake and order backlog for the first half of 2010, the achievement of our long-term sales and earnings targets by 2013 / 2014 is possible.”
The forecast is predicated upon the basis that €4.5bn is made in sales, an EBITA margin of 7%, a tax rate of 30%, meaning that earnings per share of around €4.15 could be achieved in 2014. In contrast, 2008 saw €2.73 per share, while 2009 witnessed €1.89 per share.However, overall the company has obtained an average annual increase in EPS at a rate of 17.3% since 2000.
ANDRITZ plans to maintain its focus on continuity with regard to its dividend policy. The Firm also plans to increase the dividend payout ratio to approximately 60% over the next few years.
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