Agfa Announces 3Q Earnings, Results Affected by the September Events
Press release from the issuing company
Mortsel, Belgium (October 24, 2001) - Agfa-Gevaert announces that its third quarter results suffered heavily due to the September events in the US. September revenues dropped over 15% compared to the same month of last year. Consumer Imaging and Graphic Systems were mostly affected but even in HealthCare an increased reluctance to invest was noticed. Although consolidation of third quarter results is still being finalized, it is expected that EBIT before restructuring and non recurring expenses will reach only around 45 million Euros for the quarter. Final Q3 results taking into account translation differences and fair value accounting will be published on November, 22.
The uncertainties about the economic situation in the US as well as in Europe are such that it is impossible to forecast. However, unless the economic conditions improve significantly in the short term, Agfa-Gevaert's earlier forecasts for sales and EBIT for 2001 will not be reached.
To improve profitability, Agfa has already launched its Horizon plan. The restructuring costs linked to this scheme are estimated at approximately 550 million Euros, of which it is currently estimated that the major part will be charged on 2001 while the rest will be booked in 2002. Consequently, Agfa-Gevaert will realize in 2001 a net loss. The annual savings of the Horizon Plan are estimated at 550 million Euros. They will already have positive effects in 2002, will be substantially realized in 2003 and will reach their full beneficial effect as from 2004.
The Agfa Group headquartered in Mortsel, Belgium ranks among the world's leading imaging companies. Agfa develops, produces and markets analog and digital systems, primarily for the graphics industry, healthcare, non-destructive testing, micrographics, motion picture film and consumer photography markets. Agfa employs about 22,000 people in 40 countries, and has 120 agents throughout the world. Together, they achieved a turnover of 5,260 million Euro in 2000.
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