Meanwhile, the group's Agfa Graphics division posted a 16.7% decline in sales, to €315m for the first three months of 2009, coupled with a 93% drop in earnings before interest and tax (EBIT), which fell to €1.2m.

The Belgium-based company said that its Graphics division had been "severely hit by the impact of the global economic crisis on the printing industry".

"Printers are postponing their investments in equipment, both in pre-press and in industrial inkjet," added the company.

"Furthermore, the slowdown in the advertising markets resulted in a lower use of consumables, such as graphic film and printing plates."

However, Agfa Graphics was able to further reduce its Selling and General Administration (SG&A) costs, which were down to €13m less than in the first quarter of 2008.

Over the course of the quarter, Agfa Graphics signed a number of third-party agreements, including its deal with Canon in the UK allowing it to distribute the imagePress to its commercial print customers.

Other partnership deals included an agreement with New Zealand-based Aarque Graphics to distribute Agfa's Anapurna range of large-format inkjet printers in the country.

Agfa Graphics also signed an agreement with Focus Pre-Press Systems to distribute its plates and pressroom supplies in British Columbia, Canada.

Agfa Gevaert said that demand in its markets had stabilised compared to the end of 2008 and that "early trends show no further market decline".

Agfa's stock price was up by more than 1% this morning to €1.77.

AGFA Q1 RESULTS
Group sales €662m (2008: €753m)
Recurring EBIT €28m (2008: €40m)
Pre-tax profit €7m (2008: €15m)
Graphics Q1 sales €315m (2008: €378m)
Graphics Q1 Recurring EBIT €1.2m (2008: €17.2m)