Agfa-Gevaert N.V (Agfa-Gevaert) has reported the net sales of EUR677 million for the second quarter of 2009, down 12.9%, compared to the net sales of EUR777 million in the year-ago quarter. It also reported net loss of EUR9 million, or EUR0.07 loss per share, for the second quarter of 2009, compared with the net profit of EUR3 million, or EUR0.02 per share, in the year-ago quarter.
Market trends in line with previous statements: Group sales decreased in line with the first quarter trend
Recurring EBIT at EUR38 million versus 37 million in the second quarter of 2008 and EUR28 million in the first quarter of 2009
Operating result (EUR26 million) remained stable versus the second quarter of 2008
Decrease of SG&A costs well ahead of previously announced plans
Net financial debt improved considerably versus the first quarter of 2009
Agreement with banks about the sale of receivables for an amount of EUR160 million.
Due to its strict cost management, Agfa-Gevaert succeeded in further reducing its Selling and General Administration expenses (SG&A ). The monthly SG&A expense was brought down from 57 million Euro in the second quarter of 2008, to EUR46 million in the second quarter of 2009, which is a cost decrease by 19.3%.
The recurring EBIT was affected by a newly imposed pension charge (amounting to EUR4 million) related to pension insurances in Germany.
The Group’s recurring EBITDA (the sum of Graphics, HealthCare, Specialty Products and the unallocated portion) decreased from EUR66 million in the second quarter of 2008 to EUR64 million. Recurring EBIT increased from EUR37 million to EUR38 million.
The restructuring and non-recurring items resulted in an expense of EUR12 million, stable compared to the second quarter of 2008.
As in the first quarter of 2009, the non-operating result was affected by pension provisions (mainly concerning inactives), to cover for increased pension deficits in the USA and the UK. The non-operating result amounted to minus EUR27 million. Taxes amounted to EUR8 million versus EUR2 million in the second quarter of 2008.
Agfa-Gevaert is a Belgium-based imaging company that develops, produces and distributes a range of analog and digital imaging systems and IT solutions.