Agfa Reports Profit Increase on Lower Sales in Third QuarterOctober 30, 2009
Profitability was positively impacted by efficiency programs, by lower raw material prices and by the above mentioned one-off effects. Negative effects came from the underutilization of the manufacturing capacity, bad debt provisions and competitive pressure. Compared to the third quarter of 2008, Agfa Graphics further reduced its Sales and General Administration expense with 9 million Euro.
The recurringEBITDA margin amounted to 8.8 percent of sales. The recurring EBIT margin increased to 5.6 percent of sales.
In prepress, Agfa Graphics received its first order for :N92v printing plates from the Chinese Guangzhou Daily, one of the world's top 100 daily newspapers. Furthermore, Agfa Graphics supplied an :Avalon N8 platesetter to Sungwon Adpia, the largest consumer of Computer-to-Plate printing plates in the Korean Printing industry.
In Norway, Agfa Graphics signed an important contract with Hjemmet Mortensen Trykkeri AS, the largest printer in the country. The deal includes the installation of two :Avalon N16 platesetters, a service contract as well as a three-year contract for :Energy Elite printing plates. Agfa Graphics also signed an exclusive 5-year printing plate contract with Roularta Media Group, a majorBelgian-French publishing and printing firm.
Also in prepress, Agfa Graphics announced the signing of an agreement with Kemtek Imaging Systems Ltd. for the distribution, service and support of Agfa Graphics' product range for commercial printers inSouthern Africa.
In industrial inkjet, Agfa Graphics' next generation range of :Anapurna large-format printers continued the success of the last quarters. With contracts signed all over the world, Agfa Graphics was able to expand its market position in the large-format segment.
Furthermore, Agfa Graphics introduced new features for its :Dotrix Modular inkjet press. The new Express Print Mode increases the press' productivity by 35 percent. The second feature expands the :Dotrix Modular's color gamut.
In theUSA, Digital Packaging Solutions recently installed Agfa Graphics' :Dotrix Modular press. The system enables the company to deliver on-demand services for the packaging industry.
The world's first :M-Press Tiger was successfully installed at the SMP Group inLondon. The :M-Press Tiger is the second generation of the :M-Press industrial flatbed press. In recent months, various orders were booked for Agfa Graphics' high-end inkjet press.
For the rest of the year, the Agfa-Gevaert Group does not expect major changes in the market environment.