Local market quarantined from international plate price hikes

The results showed that while the Agfa graphics division secured a 3.9 per cent year-on-year increase in sales, the results were harshly impacted by the high cost of raw materials. Profits for the quarter fell from last year's result of $36.6 million to only $11.7 million. The company has indicated that it intends to raise prices across Europe next month.

However, Agfa's operations in Australia and New Zealand have confirmed that these price rises will not carry through to the local market. Bruce Blythe, managing director of Agfa in Australia and NZ, says this is in spite of the fact that the cost of raw materials is the highest they have even been.

"For the local market, there has been a lot of downward pressure on prices, and we have resisted that," says Blythe. "Following on from that, our intention is to keep prices as stable as possible in the region in spite of the soaring cost of raw materials."

"We are slightly buffered by the fact that the Australian dollar has remained strong to the Euro, so this gives us a little breathing space to keep prices stabilised," says Blythe.

Blythe claims sales in the Asia Pacific region have been growing steadily. "We're not going to give our competitors a break," he says. "We hold a strong position in the marketplace, and we're not going to jeopardise that by moving prices in either direction."

The outlook worldwide for the rest of 2005 remains positive, with Agfa expecting a strong end to the year. Trading conditions for the graphic arts industry are emphasised as positive, price pressure is receding and the company claims the steps taken to ensure the different business groups operate independently are proceeding according to schedule.