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UPDATE 1-Andritz CEO says won't reach sales goal in 2010

Published 10/20/2009, 08:17 AM
Updated 10/20/2009, 08:21 AM
ALSO
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* 4.5 bln euro revenue goal reachable not before 2011

* Keeps 2009 guidance of revenue, profit decline

* Hydropower demand remains strong

* Shares up 0.4 percent

By Alexandra Schwarz

VIENNA, Oct 20 (Reuters) - Austrian machinery maker Andritz will reach its goal for annual revenue of 4.5 billion euros ($6.7 billion) in 2011 at the earliest, Chief Executive Wolfgang Leitner said.

"We certainly won't reach this revenue goal in 2010," Leitner told reporters on Tuesday, in a briefing during the company's Capital Markets Day. "It's possible that it will be delayed by one or two years," he said.

Leitner reiterated the company's 2009 guidance of a 15 percent revenue decline and a lower net profit.

Andritz is forecast to see a 12.5 percent revenue drop to 3.2 billion euros and a net profit decline of 31 percent to 96.7 million in 2009, according to Thomson Reuters I/B/E/S.

Andritz's hydro arm, which mainly makes turbines used in hydropower plants, is still benefiting from investments into renewable energy worldwide, Andritz said.

"We have a good project pipeline there, including for next year," Leitner said.

The unit contributed around half of Andritz's order intake in the first half of the year. Andritz is the second biggest maker of hydropower equipment after France's Alstom.

The business supplying pulp and paper mills has been hit harder by the global economic downturn as demand for paper and packaging drops along with GDP.

Leitner said the next two to three quarters would still be weak but business would not decline further, Leitner said.

"In the mid- to long term, we are optimistic that demand will kick in again," Leitner said.

Andritz shares traded up 0.4 percent at 37.68 euros by 1153 GMT. They have more than doubled since the start of the year. (Reporting by Alexandra Schwarz, writing by Boris Groendahl; editing by John Stonestreet and Rupert Winchester)

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