Covid quarter revenues plunge for Agfa
Revenue at the offset solutions division at imaging giant Agfa fell by 25 per cent in the Covid quarter (April-June), while sales in the digital print and chemicals division fell by even more.
Agfa’s Q2 sales in offset were down by €52m to €155m, while its digital print and chemicals division saw sales fall by 29 per cent to €67m.
During the quarter it closed its platemaking plants in the Leeds, UK site (formerly Howson Algraphy) and in France, which led to a non-recurring €47m expense.
Agfa is now reviewing its offset business model, and is looking at simplifying its organisation and streamlining its product range.
The company said the current pricing levels in the industry are not sustainable. It is looking into ways to adapt the earning model for certain services it provides.
In digital print, Agfa said Covid-19 had a severe impact on its large-format printing equipment business in Q2, saying the market had come “almost to a standstill towards the end of Q2”.
However, Agfa remains committed to digital and says it is in the process of developing new products for the post-Covid era. Agfa entered digital wide format printing in 2003, as it saw its film business falling away.
It remains one of the big three offset plate manufacturers, along with Fujifilm and Kodak, but all three are seeing demand slump as newspapers close, magazines reduce pagination, and digital eats away at litho work.