Agfa has said rising raw materials costs and the low US dollar have hit profits, as it announced preliminary results for the third quarter.
The company said the recurring earnings before interest and taxation (EBIT) of its graphics unit would be £8.3m-£10.45m (€12m-15m) in the third quarter of 2007, while the fourth quarter is expected to be in line with Q4 last year.
Agfa, which will release full results for the quarter on October 31, said the UK operation was "stable", with sales up 2%.
Worldwide sales for Agfa Graphics were up slightly to £278.9m, reversing the decline in the first half of 2007 as a result of the 2006 price increases and the discontinuation of some unprofitable analogue business.
The high cost of aluminium and silver hit the pre-press segment, but profitability improved to an EBIT margin of 7% because of the implementation of a cost-savings plan.
The other negative factor was the delay in the market introduction of Agfa Graphics' industrial inkjet portfolio, which includes the Anapurna range. Agfa now expects the portfolio to be profitable in 2009.
Agfa Specialty Products posted solid third-quarter sales of £48.1m, an increase of 17% compared with last year. Its profitability was affected by higher silver costs and negative mix effects. The division's recurring third quarter EBIT will be in the range of £4.18m-£5.57m and for the full year is expected to be in line with its target margins of 12-15%.
For the full year 2007, the group expects sales in line with last year at stable exchange rates and a recurring EBIT margin of about 6%.
Source: printweek
The company said the recurring earnings before interest and taxation (EBIT) of its graphics unit would be £8.3m-£10.45m (€12m-15m) in the third quarter of 2007, while the fourth quarter is expected to be in line with Q4 last year.
Agfa, which will release full results for the quarter on October 31, said the UK operation was "stable", with sales up 2%.
Worldwide sales for Agfa Graphics were up slightly to £278.9m, reversing the decline in the first half of 2007 as a result of the 2006 price increases and the discontinuation of some unprofitable analogue business.
The high cost of aluminium and silver hit the pre-press segment, but profitability improved to an EBIT margin of 7% because of the implementation of a cost-savings plan.
The other negative factor was the delay in the market introduction of Agfa Graphics' industrial inkjet portfolio, which includes the Anapurna range. Agfa now expects the portfolio to be profitable in 2009.
Agfa Specialty Products posted solid third-quarter sales of £48.1m, an increase of 17% compared with last year. Its profitability was affected by higher silver costs and negative mix effects. The division's recurring third quarter EBIT will be in the range of £4.18m-£5.57m and for the full year is expected to be in line with its target margins of 12-15%.
For the full year 2007, the group expects sales in line with last year at stable exchange rates and a recurring EBIT margin of about 6%.
Source: printweek
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