Regulated information - November 16, 2011 - 7:45 a.m. CET
· Moderate growth of group revenue excluding currency effects
· Recurring EBIT at 10 million Euro
· Net result at minus 37 million Euro
Mortsel (Belgium), November 16, 2011
Agfa-Gevaert Group - third quarter 2011
| in million Euro | Q3 2010 | Q3 2011 | % change |
| Revenue | 742 | 719 | -3.1% |
| Gross profit (*) | 243 | 181 | -25.5% |
| % of revenue | 32.7% | 25.2% | |
| Recurring EBITDA (*) | 78 | 32 | -59.0% |
| % of revenue | 10.5% | 4.4% | |
| Recurring EBIT (*) | 54 | 10 | -81.5% |
| % of revenue | 7.3% | 1.4% | |
| Profit from operating activities | 48 | (9) | |
| Profit attributable to the owners of the Company | 16 | (37) | |
| Net cash from operating activities | 34 | 2 | -94.1% |
(*) before restructuring and non-recurring items
Excluding currency effects, the Agfa-Gevaert Group's revenue grew 1.1 percent compared to last year's third quarter. This growth was driven by Agfa Graphics' industrial inkjet; Agfa HealthCare's Computed Radiography and Direct Radiography; and Specialty Products' film for new applications. It was, however, partially counterbalanced by the decline in the traditional film businesses and by the effects of the weak economic climate.
As expected, the situation on the raw material markets had a very strong impact on the Group's profitability. The effect of the continuous film price increases was counterbalanced by product mix changes, volume effects and related manufacturing inefficiencies. The Group's recurring gross profit margin declined from 32.7 percent in the third quarter of 2010 to 25.2 percent.
As a percentage of revenue, Selling and General Administration expenses decreased to 18.5 percent, versus 19.3 percent in the previous year.
The Group's recurring EBITDA (the sum of Graphics, HealthCare, Specialty Products and the unallocated portion) decreased from 78 million Euro to 32 million Euro. Recurring EBIT decreased from 54 million Euro to 10 million Euro.
Restructuring and non-recurring items resulted in an expense of 19 million Euro, versus an expense of 6 million Euro in 2010.
The net finance costs amounted to 22 million Euro, versus 26 million Euro in the third quarter of 2010.
Income tax expense remained stable at 6 million Euro.
A net loss of 37 million Euro was booked, compared to a net profit of 16 million Euro in the third quarter of 2010.
"As expected, the traditional seasonal weakness was combined with the impact of the weakening economy and the effect of the raw material prices, which were at the highest levels of the year. Our higher than average restructuring costs show that we are doing everything within our power to align our costs to the situation in our markets and to improve our productivity," said Christian Reinaudo, President and Chief Executive Officer of the Agfa-Gevaert Group.
Balance sheet and cash flow
- At the end of September 2011, total assets were 2,973 million Euro, compared to 3,086 million Euro at the end of 2010.
- Inventories amounted to 719 million Euro (or 121 days). Trade receivables (minus deferred revenue and advanced payments from customers) amounted to 476 million Euro, or 60 days and trade payables were 260 million Euro, or 44 days.
- Reflecting the seasonal pattern and the effect of the WPD acquisition, the net financial debt came in at 339 million Euro, versus 398 million Euro at the end of the third quarter of 2010 and 161 million Euro at the end of 2010.
- Net cash from operating activities amounted to 2 million Euro.
