"Currency effects and the weakness in most of the emerging markets had a strong negative impact on our first quarter revenue, in particular for our traditional businesses which are more exposed to these markets. Despite the negative effects of the strike at our Belgian manufacturing sites, we succeeded in improving our gross profit margin. Benefiting from our efficiency programs and our previously announced restructuring efforts, we achieved a positive net result. Being a major focus point, cash flow generation was strong due to our working capital management program. As a result, we further reduced our net financial debt. We believe the first half of the year 2014 will continue to show a soft business environment, but we will continue to improve our gross profit margin and we will continue to focus on cash flow generation. We stick to our medium term target of delivering a double digit recurring EBITDA percentage," said Christian Reinaudo, President and CEO of the Agfa-Gevaert Group."
"Once again, the economic environment was difficult in 2013. The exchange rates between the Euro and most other currencies were unfavorable to Agfa. In some emerging markets, GDP growth somewhat slowed down. Furthermore, sales of our analog businesses declined strongly versus a very solid year 2012, when these businesses recovered from the silver crisis of 2011. In these conditions, we chose to focus our efforts on improving our operational efficiency and our balance sheet. We succeeded in increasing our gross profit margin throughout the year. The strong improvement in the fourth quarter shows that we are on the right track to achieve one of our main goals: to restore our gross profit margin to a level in line with our recurring EBITDA target. The IT and Direct Radiography growth engines of Agfa HealthCare performed well and in line with expectations. In Agfa Graphics, our Inkjet business not only reached its target of crossing the break-even line during the year. For the first time ever, it even delivered a slightly positive full year recurring EBIT. This result shows that rationalizing the product portfolio was the right decision. As far as the balance sheet is concerned, we managed to significantly reduce our working capital and to deliver a strong operational cash flow, which resulted in a healthy reduction of our net financial debt. Due to targeted benefit reduction programs, we also reduced our pension liabilities. In 2014, we aim at making good progress towards our medium term target of delivering a double digit recurring EBITDA percentage. In that respect, our fourth quarter results are very encouraging," said Christian Reinaudo, President and CEO of the Agfa-Gevaert Group.
"Our third quarter top line is distorted by the very strong adverse currency impact. In addition, analog film revenue was much lower than in the third quarter of last year, when the analog businesses performed exceptionally strong, recovering from a weak period in 2011 and in the first months of 2012. Our future oriented digital and IT products, on the other hand, evolved positively. Agfa Graphics' industrial inkjet business confirmed the crossing of the break-even line, resulting in a slightly positive year-to-date recurring EBIT. Our gross profit margin improved compared to last year's third quarter. Furthermore, the improvement of our operational cash flow and the reduced net debt show the success of our working capital efforts," said Christian Reinaudo, President and CEO of the Agfa-Gevaert Group.
"Agfa HealthCare's growth engines performed well, whereas Agfa Graphics' top line was affected by the uncertain and weak economic situation. The gross profit margin continued to improve year-on-year, driven by the effects of our efficiency programs. We expect to be able to further restore our net result by focusing on the continuous improvement of our gross profit margin," said Christian Reinaudo, President and CEO of the Agfa-Gevaert Group.