Agfa Reports Q2, Graphics Revenue Down 9%
Wednesday, August 28, 2013
Press release from the issuing company
"During the second quarter, we focused on the further improvement of our working capital. These efforts helped us to improve our operating cash flow and to reduce our net debt. Furthermore, we are on track to reach the gross profit targets we have set ourselves. Finally, I am also confident that Agfa Graphics' industrial inkjet business will reach the break-even point in the course of 2013," said Christian Reinaudo, President and CEO of the Agfa-Gevaert Group.
Agfa Graphics' revenue decreased by 9.1 percent to 380 million Euro. Overall, the business group's revenue was impacted by the tough economic conditions and adverse currency effects.
In the prepress segment, the digital computer-to-plate (CtP) business' volumes were stable, whereas the analog computer-to-film (CtF) business declined strongly.
The industrial inkjet segment's revenue was influenced by measures to rationalize the product portfolio and by the weak investment climate, as companies are reluctant to invest in high-end equipment. The low-end Anapurna product range, on the other hand, continued to perform well. In spite of the adverse evolution of the segment's top line, industrial inkjet is on track to reach the break-even point in the course of 2013.
Gross profit totaled 25.5 percent of revenue, versus 25.8 percent in the second quarter of 2012 and 25.1 percent in the first quarter of 2013. Agfa Graphics' operational improvements were offset by mix effects and competitive pressure. As a percentage of revenue, recurring EBITDA and recurring EBIT improved to 5.8 percent and 3.3 percent respectively. In absolute numbers, both recurring EBITDA and recurring EBIT remained stable.
In June, the German Court of Appeal in Düsseldorf decided in favor of Agfa Graphics in a patent law suit against Papier Union GmbH, the German dealer of the Chinese printing plate manufacturer Chengdu Xingraphics Co. Ltd. It was decided that one of Agfa Graphics' patents (EP823327) is infringed by the sales of Xingraphics " FIT " digital printing plates. The same outcome was also reached in January in the parallel proceedings before the Dutch Court of Appeal. These cases show Agfa Graphics' firmness in protecting its know-how against infringements.
In the field of prepress, Agfa Graphics' environment-friendly technology continued to convince commercial printers all over the world. In Australia, for instance, Fox Print decided to start using Agfa Graphics' Azura TS chemistry-free printing plate technology in order to further improve its environmental credentials. In Korea, the leading Ad Core printing company ordered two Avalon N8 platesetters. The company will also use Agfa Graphics' Azura printing plates.
In the newspaper segment of the printing industry, El Mercurio, the largest newspaper in Chile, will start using the business group's eco-friendly N94-VCF printing plates and ordered four Advantage platesetters and Arkitex workflow software. In New Zealand, newspaper publisher Beacon Media Group signed a three-year printing plate contract with Agfa Graphics and ordered an Advantage N SL platesetter and additional equipment. The Spanish Graficas De Prensa Diare company ordered three Advantage NTR XXT platesetters and signed a three-year printing plate contract.
In April, Agfa Graphics launched a new version of its Fortuna security printing software. Fortuna is designed to protect banknotes, ID-cards, documents, packaging and other printing applications against counterfeiting.
In the field of industrial inkjet, Agfa Graphics introduced its brand new Asanti automated workflow solution for the wide-format sign and display markets at the FESPA trade show in London. Asanti allows wide-format printers to streamline their production, and to integrate automated color consistency and quality management features in their workflow.
Also at FESPA, Agfa Graphics launched new additions to its broad portfolio of industrial inkjet printers. The Anapurna M3200 RTR system is an eco-friendly print system that allows users to print onto a wide variety of flexible materials. A new member to the successful Jeti Titan range is the highly productive and versatile Jeti TitanX. In order to satisfy the growing market demand for direct printed textile output, Agfa Graphics launched its new Ardeco wide-format printer.
The Jeti Titan printer range continued to convince print houses of its many advantages. The Brazilian Zoom Imagem company, for instance, ordered two Jeti Titan systems. Crystal Clear Imaging ( New Orleans , Louisiana, USA) will use Agfa Graphics' system to create high-quality graphics and displays for leading brands and high-profile sporting events. Also in the USA, Diesel Displays will use its new Jeti Titan to produce turn-key displays and graphics for leading retail organizations. The French Creaprod company signed the very first contract for the new Jeti TitanX system.
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