Agfa consolidates, profits rise
As part of a global strategy to reorganize healthcare operations in strategic locations, Agfa is consolidating operations addressing PACS R&D and healthcare equipment repair. R&D will be based in Waterloo, Ontario, and Mortsel, Belgium. The HealthCare
As part of a global strategy to reorganize healthcare operations in strategic locations, Agfa is consolidating operations addressing PACS R&D and healthcare equipment repair. R&D will be based in Waterloo, Ontario, and Mortsel, Belgium. The HealthCare Equipment Repair US will be centered in Atlanta, at the company's World Parts Center. Operations at the Glasgow, DE, facility are scheduled to close at the end of 2003. These moves are the latest to come out of a multiphase global initiative begun in 2001 to streamline and consolidate operations across all business groups under the name "Horizon." Last year, Agfa HealthCare announced the consolidation of U.S. x-ray film production activity in Agfa's Bushy Park, SC, facility. Facilities in Germany, Belgium, Spain, and the U.K. have also been affected by this corporate initiative.
In related news, Agfa announced a 9.7% drop in sales during 1Q 2003 compared to the year earlier period. Revenues in the quarter came to Euro 1.027 billion. Agfa HealthCare posted sales of Euro 339 million against Euro 362 million in 1Q 2002. The 6.4% decrease was due exclusively to fluctuating currency effects, according to Agfa. In spite of these difficult circumstances, Agfa improved its operating margin and net profit more than doubled compared to the previous year period.
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