Agfa has announced first-quarter results showing a 10.8% revenue increase to €736m ($978m), with the graphics division outperforming the group posting an 11.9% upswing to €386m.

The company said the sales figures split into Europe at 45%, NAFTA 22%, Asia Oceania and Africa 24%, and Latin America 9%.

Operating profit for the group was down nearly a quarter year-on-year however to €40m and, accounting for restructuring and other costs, dropped its net result to €5m from €18m.

The company cited high costs of raw materials as impacting profitability, while the price increase it is bringing in on its film products to offset the rise in silver prices has yet to kick in.

Operating profit for the graphics division dropped nearly a third to €17m for the quarter.

According to reports, spot silver prices reached $45 a troy ounce at the end of April compared with an average $18 an ounce in 2010. For its graphics business, the company said that the price rises had resulted in resellers using up their existing stocks of film plates.

It also said its inkjet revenues were growing, with M-Press installations both in the UK and US, although did not give figures.

Agfa said that Pitman, which it acquired last year, is on track to contribute about $300m to the top line on a full year basis and should show an EBIT of 7% after the first year of consolidation (i.e. as of Sept 2011). Litho Supplies, which it bought earlier this year is too small to report separately.

It said that its liability for “post-employment and long-term terminiation benefit plans of about €1bn” remained a non issue because it is long term, costing the company around €70m each year.

Shares in the company opened up from Tuesday’s close at €3.25, trading at €3.37 at the time of writing.    

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