Agfa-Gevaert Q2 net in-line, soars 50 pct on weak comparables; sales fall UPDATE

Agfa-Gevaert Q2 net in-line, soars 50 pct on weak comparables; sales fall UPDATE

	Published : Tue, 31 Jul 2007 08:15 By : Agencies Print this Story

(Updates with further detail on group, unit earnings performance, outlook)

BRUSSELS (Thomson Financial) - Imaging technology and software group Agfa-Gevaert NV said its second quarter net profit soared 50 pct on weak comparables, with last year's result impacted by a hefty charge on the divestment of its consumer imaging division.

Net rose to 42.0 mln eur from 28.0 mln last year, in line with 41.0-45.0 mln forecasts.

Sales dipped 1.6 pct to 845.0 mln eur from 859.0 mln, pressured by high raw material costs and currency effects. EBIT on ongoing operations fell 28.6 pct to 55.0 mln eur from 77.0 mln.

By division, graphics EBIT on ongoing operations fell to 14.7 mln eur from 18.1 mln. Healthcare EBIT on ongoing operations fell to 33.3 mln eur from 51.2 mln. The figure for specialty products came in at 9.3 mln eur, down from 14.2 mln.

On outlook, the group said it expects the company's demerger to be completed by summer next year, with the group implementing the transaction based on the closing balance sheet of Dec 31 at the end of this year.

The listing of independent companies will also take place before summer 2008.

By division, the group said its healthcare unit's second half EBIT will 'substantially exceed' the first half. It added that specialist product sales will continue to be strong in the second half.

For graphics, it said it expects an increase in inkjet equipment sales in the second half and further growth in the digital computer-to-plate segment.

The group said it now has a workforce of 14,000. Sales and general administration costs, excluding non-recurring items, fell to 196.0 mln eur in the second quarter from 209.0 mln last year.

'Group results are clearly affected by the very high costs of aluminum and by the investments in the development and roll-out of innovative technologies. On the other hand, the cost savings plan and the growth strategies of the different businesses will further contribute to the results,' the company said.

simon.zekaria@thomson.com

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