CORRECTED-UPDATE 1-Andritz slashes dividend after earnings slump

viernes 28 de febrero de 2014 03:58 GYT

(Corrects to show that Andritz had already warned EBITA to be around 160 mln eur, para 4)

* 2013 EBITA 164 mln eur

* 2013 dividend 0.50 eur/shr vs 1.20 eur/shr in 2012

* Significant improvement in net income seen for 2014

VIENNA, Feb 28 (Reuters) - Austria's Andritz reported a 39 percent drop in 2013 operating income on Friday on cost overruns at a South American pulp mill and restructuring costs.

The engineering firm slashed its 2013 dividend to 0.50 euros per share from 1.20 euros in 2012 after earnings before interest, tax and amortisation (EBITA) fell to 164 million euros ($224 million).

Expenses and provisions related to the cost overruns at the pulp mill had already forced Andritz to issue two profit warnings since last April.

In January, it had said that EBITA would be around 200 million euros as a result of provisions for the pulp project, and after deduction of provisions for planned restructuring recently acquired Schuler would be around 160 million euros.

Andritz said its earnings at its Separation unit had also been hurt by additional marketing costs for a new product series in China and limited investments from the mining and chemical industries.

"The results of the Pulp & Paper and Separation business areas were unsatisfactory," Andritz said in a statement.

Andritz swung to a net loss of 12 million euros in the fourth quarter from a profit of 76 million in the year-ago period. It said it expected a significant improvement in net income in 2014 and a slight rise in sales. ($1 = 0.7309 euros) (Reporting by Georgina Prodhan; Editing by Michael Shields)