Agfa-Gevaert reports Q4 2009 profit rise on cost cutting
Wednesday, February 10, 2010
Press release from the issuing company
During today's meeting, the Board of Directors of Agfa-Gevaert has reviewed the preliminary, unaudited results for the fourth quarter of 2009.
Total fourth quarter sales amounted to 735 million Euro, decline of 3.4 percent compared to the fourth quarter of 2008. Excluding currency effects, the decline would be limited to 1 percent.
Agfa Graphics' sales amounted to 356 million Euro, a decrease of 6.8 percent versus the fourth quarter of 2008. The decline was weaker than in the previous quarters due to the continuing recovery of the graphic markets and a shift of part of the film business from Agfa Specialty Products to Agfa Graphics as a result of changes in the competitive landscape.
Agfa HealthCare's fourth quarter sales decreased 2.8 percent to 316 million Euro. Excluding currency effects, sales would be at the same level as in the fourth quarter of 2008.
Agfa Specialty Products' sales increased 12.7 percent to 62 million Euro, as some of the traditional film markets started to recover. This effect was partly offset by a shift of part of the film business to Agfa Graphics.
The Agfa-Gevaert Group's total fourth quarter EBIT is expected to be approximately 73 million Euro (9.9 percent of sales), versus 31 million Euro in 2008.
Agfa Graphics' EBIT is expected to be approximately 30 million Euro (8.4 percent of sales), compared to 18 million Euro in the fourth quarter of 2008.
Agfa HealthCare's EBIT is expected to amount to approximately 39 million Euro (12.3 percent of sales), versus 14 million Euro in the fourth quarter of 2008.
Agfa Specialty Products' EBIT is expected to amount to approximately 3 million Euro (4.8 percent of sales), versus 0 million Euro in the fourth quarter of 2008.
The Group's fourth quarter net result is expected to be approximately 20 million Euro. For the total year, the net result is therefore expected to be approximately 6 million Euro.
At year end, net debt stood at 445 million Euro, versus 673 million Euro at the end of 2008.
Agfa-Gevaert's CEO Jo Cornu commented on these preliminary results as follows: "We are obviously pleased with these results, which we achieved in full economic crisis. In the fourth quarter of 2009, we have taken full benefit of the efforts of the past two years to reduce costs and improve operational efficiency. In Agfa Graphics, we are noticing a recovery of the market, which declined up to 20 percent at the peak of the economic crisis. The Agfa HealthCare business group continued its strong operational performance in the fourth quarter, which traditionally is the strongest one of the year. The Agfa-Gevaert Group has returned to profitability and net debt is significantly down. We are well positioned to take advantage of some of the recent growth initiatives in 2010."
Agfa-Gevaert will disclose its complete and fully audited results for 2009 on March 31.
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