Agfa profits rise in Q1; concerned about raw material costs
By Philip Blenkinsop
BRUSSELS (Reuters) - The operating profit of Agfa-Gevaert rose in the first quarter of 2006, in line with estimates, but the group of Belgian imaging technology warned that the hikes in the prices of silver and aluminum might have a negative impact on its future performance.
The company, which specializes in medical imaging equipment and software for the publishing industry, had already said last month to shareholders that sales had grown by 8 per cent, while operating profits were up in the first three months of year.
Net sales grew by 8.1 percent, to 810 million euros (1.000 billion dollars) while earnings before interest and taxes (EBIT) rose to 54 million euros from 41 million euros, a year ago.
But in considering extraordinary charges and restructuring, operating income fell to 43 million euros, compared to 42 million in the same period of 2005.
According to a Reuters poll of eight analysts, EBIT after restructuring charges would rise to 53 from 37 million euros, with an average forecast of 45 million euros, although some felt that the charges be located below the current 11 million euros.
Agfa said in a statement that noted a continued favorable trend in sales, excluding currency effects.
"However, the recent dramatic increases in costs of raw materials, especially silver and aluminum, will have a considerable impact on the results of Agfa for the coming quarters," the company said.
"The results were roughly in line, although the quality of these is not good," said Arnaud Goossens, an analyst at ING, who added that only three small businesses Agfa exceeded expectations.
Via Yahoo News
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