In naval terms it's all a bit foggy, frankly. As John pointed out, the Italians in WWI were hampered by circumstance rather than ineptitude. In terms of Dreads, though . . . well, they've got 2 operational in August, '14, 3 coming online in the first half of '15 and 1 midway through '16. Now, being engaged in war slows down Dread construction, and increases smaller construction - if the UK, France, Germany and Russia may be used as examples.
Austria had 3 (and a fourth commissioned in late '15), but these were the Tegetthofs. See here
http://en.wikipedia.org/wiki/SMS_Szent_István
They had some rather bad design flaws, which would probably have made them a greater liability in a battle than British loading procedures at Jutland.
I can see it now.
* Prinz Eugen succumbs to enemy torpedo attack
* Szent Istvan keels over after trying to beach herself
Admiral Horthy: There seems to be something wrong with our bloody ships today!
Anyway, back to numbers. First refers to vessels commissioned by or during August, '14. Number in brackets refers to ships constructed during war.
France: 4 (3) {6
Danton-class Semi-dreads are also available}
Italy: 2 (4)
A-H: 3 (1)
Random factor:
Goeben will probably go to Italy or Austria if Italy declares for CP in August, '14. Otherwise, I see her still heading for C'nople.*
The likely result, in naval terms, is one of the following:
a) RN dreads sent to Med, resulting in a weaker RN presence in the North Sea.
b) Britain funding the French purchase of some ships from Brazil, Argentina &c. (Brazil has 2 - a bit wonky, and Argentina has 2 u/c in New York, IIRC.)
c) A lot more Allied pressure on the IJN to contribute ships to securing superiority in the Med.
* This has dredged up in my mind a recollection that there were proposals for the Austrian fleet to go to Stambul to reinforce
Goeben. We had a thread on it a few months ago. Anyone recall? Anyway, by '16 Italy will have 6 Dreads, and so will France. So with Italy friendly (presuming the war lasts this long) Austria can trundle off to help the Ottomans defeat Russia.