Revenues in Agfa's medical imaging and nondestructive testing businesses grew 10% in the first quarter, a bright spot in an otherwise lackluster period for the Belgian film and imaging vendor.
For the quarter, the company reported overall revenues of 1.182 billion euro ($1.039 billion), down 6% compared with sales of 1.26 billion euro ($1.107 billion) recorded in the same period of 2000. Agfa pointed out that the first quarter of 2000 was an unusually good one for the company, and that Q1 2001 sales are still 15% over the same period in 1999.
The decline was due primarily to sluggish sales in the company's graphic systems and consumer imaging business units. Growth of 10% was recorded in Agfa's technical imaging business, which includes medical imaging and nondestructive testing.
For the quarter, the technical imaging unit posted revenues of 440 million euros ($386.7 million). The business posted operating earnings before nonrecurring expenses/income (EBIT) of 65 million euros ($57.1 million), a decline of 4% compared with last year's strong first quarter. The division has a return on sales of 14.6%, and its share of contribution to Agfa's overall profits has risen from 32% to 37%.
Agfa is negotiating the sale of its consumer imaging unit to London-based investment firm Schroder Ventures International Investment Trust. Agfa said this week that the results of negotiations are still pending, but the firms intend to reach an agreement in the near future. Agfa plans to finance medical acquisitions from the proceeds of this sale.
By AuntMinnie.com staff writersMay 18, 2001
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