Agfa Reports Profit Increase on Lower Sales in Third Quarter
MORTSEL, BELGIUM—October 30, 2009—Compared to the third quarter of 2008, Group sales decreased 8.1 percent to 681 million Euro, which indicates that the crisis-driven decline in Agfa-Gevaert's markets is bottoming-out.
The Group's recurring gross profit margin improved from 30.1 percent in the third quarter of 2008 to 32.3 percent. It was positively influenced by efficiency programs, lower raw material prices and certain one-off effects and negatively impacted by manufacturing inefficiencies due to lower use of capacity.
Continuing its strict cost management, Agfa-Gevaert further reduced its Selling and General Administration expenses. The average monthly SG&A expense was brought down from 51 million Euro in the third quarter of 2008, to 44 million Euro in the third quarter of 2009, which is a cost decrease by 13.7 percent. The SG&A expenses represented 19.4 percent of sales, versus 20.8 percent in the third quarter of 2008.
The Group's recurring EBITDA (the sum of Graphics, HealthCare, Specialty Products and the unallocated portion) increased from 54 million Euro in the third quarter of 2008 to 68 million Euro. Recurring EBIT increased strongly from 27 million Euro to 43 million Euro.
The restructuring and non-recurring items resulted in an expense of 7 million Euro, versus 8 million Euro in the third quarter of 2008.
As in the first half of 2009, the non-operating result was affected by pension provisions (mainly concerning inactives), to cover for increased pension deficits in theUSAand theUK. The non-operating result amounted to minus 23 million Euro.
Taxes amounted to 8 million Euro, the same as in the third quarter of 2008.
The net result amounted to 4 million Euro, compared to minus 13 million Euro in the third quarter of 2008.
Balance Sheet and Cash Flow
• At the end of September 2009, total assets were 2,931 million Euro, compared to 3,160 million Euro at the end of 2008.