Agfa Graphics’ full year revenue increased by 2 per cent to 1.5bn, which the compony says was driven by double-digit growth in the industrial inkjet business, as well as by the strategic moves.
In the prepress segment, volumes in the digital computer-to-plate (CtP) business continued to grow. The decline in analogue computer-to-film (CtF) accelerated due to the film price increases that were implemented in reaction to the high raw material prices.
Agfa reports that the Group’s margins were impacted by the high raw material prices and the competitive pressure in CtP. The decline of the film volumes affected manufacturing efficiency.
These adverse elements were partially offset by Agfa Graphics’ film price increases and other measures to improve efficiency. The gross profit margin decreased from 30.9 per cent in 2010 to 25.2 per cent. Recurring EBITDA amounted to 87.6m Euro (5.5 per cent of revenue) and recurring EBIT to 48m Euro or 3 per cent of revenue.
Christian Reinaudo, president and CEO of the Agfa-Gevaert Group says, “In the fourth quarter of 2011, the soft economic environment has somewhat impacted the top line of the Agfa-Gevaert Group – in particular in the Graphics business.
“Nevertheless, the Group has delivered a strong quarter thanks to the quarter-on-quarter improvement in the gross margin, the tight control on the Selling and General Administration costs and the strong performance of the HealthCare business.”
In the fourth quarter, Agfa Graphics launched a new comprehensive eco-friendly CtP solution for newspapers. The solution includes the new :Advantage N-TR XXT platesetter (producing up to 300 printing plates per hour), the chemistry-free :N94-VCF printing plates and the high-speed :VXCF85 clean-out unit.
Furthermore, Agfa Graphics introduced important enhancements to its :Arkitex workflow management suite for newspapers. Completely new is :Arkitex Eversify. The tool offers newspapers a straightforward way to enter the new world of mobile digital publishing without increasing production costs.
Also in prepress, Agfa Graphics announced the release of a new version of :Fortuna. This widely-used security printing software is designed for the highest security applications, including banknotes, passports, stamps and identity cards. Currently, Agfa Graphics protects over 75 percent of world banknotes.
In the field of industrial inkjet, a “significant number” of installations were delivered in the fourth quarter.
Reinaudo adds, “Consistent with our strategy to continuously align our cost base with the market situation, and drawing lessons from the accelerating film business decline, we have decided to implement timely measures to support the future profitability. These actions are aiming at reinforcing the focus on the growing segments of our business.”
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