November 6, 2019 / 7:14 AM / 10 days ago

UPDATE 1-Andritz maintains full-year forecast after sharp decline in Q3 profit

(Adds details, outlook)

VIENNA, Nov 6 (Reuters) - Engineering group Andritz stood by its full-year forecast on Wednesday even as it posted a sharp decline in third-quarter core profit, largely due to restructuring costs at its German Schuler subsidiary.

Backed by an order backlog of 8.12 billion euros ($9 billion) as of end-September, the company said it still expects its 2019 adjusted margin on earnings before interest, tax and amortisation (EBITA) at last year’s level of 6.9%.

The company said the backlog was boosted by strong demand at its pulp and paper business.

In 2020, Andritz will focus on restructuring its metals forming business and further optimize costs to improve competitiveness, Chief Executive Wolfgang Leitner said.

Andritz, which supplies plants and systems to the auto, pulp and paper and metal manufacturing industries, reported adjusted EBITA of 101.7 million euros for the three months to the end of September.

The firm plans to cut 500 jobs in Germany at Schuler, which specialises in systems and tooling for the automotive industry, due to weak investment activity in the automotive industry and a shift in demand towards Asia.

Including the Schuler restructuring costs, EBITA came in at 6.4 million euros compared with 85.9 million last year, Andritz said.

$1 = 0.9029 euros Reporting by Kirsti Knolle Editing by Saumyadeb Chakrabarty

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