Sales up but profits down for Agfa

The graphics division reported a growth in sales of six per cent over this time last year, rising to $720 million. However, the company continues to struggle with the cost of raw materials and says it will consider raising the price of consumables again if necessary.

“All business groups posted strong sales in the first quarter. This confirms we are following the right strategies,” says Marc Olivié, CEO for Agfa.

“However, as we continue to be confronted with skyrocketing raw material costs and a very competitive environment, we need to bring our costs down significantly.”

As a whole the company posted a net profit of $34 million for the three months ending 31 March 2006, a drop of 31 per cent from the figure recorded a year ago. Sales increased 8.1 per cent from this time last year.