Total sales were Euro 2.25 billion, up 7.5% over last year in ongoing businesses, excluding copiers, which were divested in 1998. Operating profit before one-time restructuring charges – but including charges from the Sterling Diagnostic Imaging acquisition – increased by 1.3% to Euro 161 million. Excluding the effect of the Sterling acquisition, operating profit grew by 5.7%.
Graphic Systems achieved sales of Euro 966 million in the first six months, 6% less than in the same period last year. Consumer Imaging achieved sales of Euro 695 million, an increase of 1.2%. With sales of 130 million, the Laboratory Equipment business unit achieved a growth rate of 11%. Sales of DTP products increased by 21% to Euro 95 million. Business with film and photofinishing products (photographic paper and chemicals) was down 6% to Euro 461 million.
According to Dr. Klaus Seeger, Chairman/CEO of Agfa-Gevaert, the company‘s net income will be lower than Euro 10 million due to Agfa‘s ambitious Euro 250 million restructuring program, which marks a vital investment for a significant and sustainable increase of the company‘s profitability. The announced closure of the Neu-Isenburg facility will be finalized by end of this year. Graphic films production is being shifted to Mortsel, Belgium. The company will also close its X-ray and graphic films plant in Aranjuez, Spain, and transfer the production to Mortsel.