Revenue at Agfa HealthCare of Mortsel, Belgium, dipped 1% in the first quarter, although parent firm Agfa-Gevaert said the division performed in line with expectations.
For the period, the healthcare unit turned in sales of 291 million euros ($408.7 million), compared with 294 million euros ($413 million) in the corresponding quarter of 2008. The division posted recurring earnings before interest, taxes, depreciation, and amortization (EBITDA) of 39 million euros ($54.8 million), up 20.7% compared with EBITDA of 32.3 million euros ($45.4 million) in the first quarter of 2008.
In analyzing the results, Agfa said that the division's x-ray film business evolved in line with trends from previous quarters, in which equipment sales suffered as healthcare organizations postponed purchases of computed radiography systems. The division's Imaging IT and Enterprise IT units performed "markedly better" than in the first months of 2008.
Profit margins for consumables suffered due to "production inefficiencies" from lower use of the division's production capacity. Agfa HealthCare reduced its selling and general administration (SGA) expenses by 10 million euros ($14 million) compared to the first quarter of 2008, which accounted for the increase in EBITDA.
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