Agfa upbeat as Graphic Systems Q3 sales rise

Afgas Graphic Systems division has reported a 5% year-on-year increase in sales for the third quarter and is positive that results will continue to improve.

The division posted revenues of 285m (Euros 406m) in the three months to 30 September. It put the rise down to a "considerable improvement of the trading environment" compared to Q2.

The incorporation on 1 September of Italian plate manufacturer Lastra, which Agfa-Gevaert bought for 100m in August, also contributed to the rise in sales.

But profits for the section slipped due to "price erosion and raw material prices". Operating profits in Graphic Systems fell by 2.4% to 16m for the quarter, compared to 2003.

Agfa as a whole posted a 8.7% decrease in sales to 669.1m, with gross profits dropping 16% to 261m.

Agfa UK Graphic Systems director Laurence Roberts said that the results showed "a progressively improving situation" after 2003 proved to be "extremely difficult".

He added that the overall company results would continue to improve following the sale of Agfa's consumer imaging division, which caused a non-cash loss of 302m earlier in the year.

Story by Josh Brooks