Agfa-Gevaert Group: New timeline for split of the company

On March 1, Agfa-Gevaert‘s Board of Directors had decided to separate the businesses of Agfa Graphics, Agfa HealthCare, and Agfa Materials from each other by the end of 2007.

According to a press release, the decision was made in view of Agfa-Gevaert‘s second quarter results, which compelled the Board of Directors to dedicate all management resources to operational improvements. In the second quarter of the current fiscal year, Agfa-Gevaert recorded group sales of Euro 845 million (plus 0.8 percent compared with the second quarter 2006). Earnings before taxes decreased 28.6 percent to Euro 55 million; the non-operating result was minus Euro 19 million. The net profit increased from Euro 28 million in the second quarter 2006 to Euro 42 million this year. Agfa-Gevaert‘s result was affected by increased costs for raw materials such as aluminium and by the investments in the development and roll-out of innovative technologies.

Agfa-Gevaert has also announced that independent accounting experts, Ernst & Young Ltd., have rendered their decision in the purchase price dispute between Agfa-Gevaert and AgfaPhoto Holding relating to the divestiture of Agfa-Gevaert‘s Consumer Imaging business in 2004. The decision of the independent accounting expert set the purchase price at Euro 81 million, which is in line with the provisions taken by Agfa-Gevaert in the past, the company said.