Agfa Graphics blames economic slowdown for fall in sales

The company blamed the decline in revenue on “the economic slowdown and the price pressure related to it, as well as to certain adverse one-off effects”.

Agfa Graphics said that its plans to reduce R&D expenditure and sales and general admin costs were on track, and that this had compensated for the adverse effects of the economic slowdown and high raw material costs.

Although this led the division’s recurring EBITDA as a percentage of sales to increase from 7.4% to 7.6%, the decline in sales counteracted the rise in profitability, as recurring EBITDA fell by 2.7% to €28.6m ($AU54.6m).

Agfa highlighted the sale of its Delano WebApproval project management system to UK-based Howitt, a division of the Lateral Group, in its third-quarter results.

Agfa-Gevaert’s group results made for similar reading, with net sales down 6% to €741m ($AU1.4bn) and recurring EBITDA down 15.4% to €55m ($AU105m).

However, the company said that sales and general admin costs across the group were 14.9% lower year-on-year, while net financial debt was reduced from €852m ($AU1.63bn) to €723m ($AU1.38bn).

Read the original article at www.printweek.com.

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