After discounting the effect of exchange rate effects, group sales fell 1.7 percent, to 741,000,000 euros. If you calculate the impact of currencies, fell 6.0 percent. In addition to the cost of raw materials (in 2007 than in the third quarter by 19 million euros) the impact, one-time factors and the adverse effects of a combination of factors also affected the group’s financial status. Gross profit for the 224,000,000 euros (30.2% of sales) and in the third quarter of 2007 to 261,000,000 euros (33.1% of sales).
Compared to last year’s third quarter, Agfa Gevaert to sales and general administrative expenses to further reduce the 27,000,000 euros (excluding the impact of the exchange rate for the 22,000,000 euros). These costs account for sales of 20.8, while in the third quarter of 2007 to 23.0 percent in 2008 to 22.0 percent in the second quarter. Agfa will continue to focus on all business groups to increase efficiency and reduce costs on top.
The Group’s EBITDA (Graphic Arts, health care, products and features are not part of the distribution of the sum of) the total amount of 55,000,000 euros, while in the third quarter of 2007 to 65,000,000 euros. Pre-tax profit (EBIT) from 25,000,000 euros to 27,000,000 euros.
Agfa Graphics in the third quarter of the financial situation according to figures released by Agfa Graphics, sales decreased by 1.2 percent (excluding the impact of exchange rate). Taking into account the impact of exchange rate, there was a decrease of 5.8 percent. This decline is due to the effects of the economic slowdown and the related price pressures, as well as some of the adverse impact of a one-off. In a computer simulation of the film in the area continued to decline, and the digital computer to plate (CTP) market continues to grow. This is mainly because the Drupa exhibition productive, industrial ink-jet printer market, sales were higher than the previous quarter.
Agfa Graphics plans to reduce its R & D spending, while business groups have succeeded in reducing speed up the implementation of sales and general administrative costs. These costs now account for 20.2 percent of sales, and in the third quarter of 2007 to 21.5 percent. These efforts make up as a result of the economic slowdown and rising raw material costs brought about by the adverse effects. Therefore, EBITDA increased to 28,600,000 euros (7.6% of sales), pre-tax profit (EBIT) increased to 15,600,000 euros (4.1% of sales).
In the United States, a number of pre-press production sites in the use of Agfa computer-to-plate technology, the major newspapers continued to grow. For example, “Chicago Sun-Times” recently purchased 9: CLS and the CTP system: Arkitex workflow components. “Sun-Times” media group “Chicago Sun-Times,” the United States, a major newspaper. In Brazil, Agfa Graphics signed with the country’s most important one of the newspaper “O Globo” transactions, including 5 Polaris CTP systems, a full set of: Arkitex workflow software and a three-year plate Contract.
Howitt (Howitt) is the UK’s largest integrated marketing support and printers one of the investment to buy Agfa’s Graphic Arts: Delano Webapproval project management system. The system allows customers Howitt through the company’s department prepress proofing to see the number of pages to speed up the approval process.
In the industrial inkjet printer, PriscoDigital Agfa Graphics has joined the broad ink-jet printer and supplies dealer ranks. PriscoDigital for the United States to provide a full range of: Anapurna system. The new products include: Anapurna XLS, this device is for the production of high-speed photo printing quality and design.
Looking to expand open to the economic slowdown is affecting the business of Agfa Gevaert. With the economic environment, the next step of the development trend of a high degree of uncertainty, it is not possible for the next few months to provide a clear prospect. The current trend in the foreign exchange market and silver and aluminum prices decline in the positive impact may be visible in early 2009.
In printing, the impact of the economic slowdown is becoming more and more obvious. After discounting the effect of exchange rate effects, sales are still in the first quarter to show an appropriate growth in the second quarter is almost stable. And in the third quarter and economic trends, also fell slightly. The simulation part of the pre-press market continued to decline to accelerate, and the innovative digital pre-press business is still growing. Industrial inkjet printer market is expected to continue to grow, but the growth rate may be the adverse effects of economic recession. Graphic Arts department will continue to focus on cost-cutting measures to its market in the face of the challenge.
Agfa Gevaert to the end of 2008 before being implemented to reduce its sales and general administrative expenses 100,000,000 euros (after adjusting for foreign exchange effects of approximately 75,000,000 euros). In addition, the group recently disclosed plans to reduce costs and other relevant details of the plan to release second quarter results announcement. In 2008 together with the amount of savings, the plan’s goal is to have until the end of 2010 to reduce the Group’s operating expenses 120,000,000 euros. This amount is principally involved in reducing the cost of sales and general administrative costs. In addition to this figure, but also to adopt other cost-cutting measures in order to protect the group in recent economic trends, gross profit margins.