So what happens with the APX films and Rodinal, etc?(posted 8402 days ago)----------- 09/27 08:22 Bloomberg Agfa May Cut as Many as 4,000 Jobs in Next 15 Months (Update5) By Jennifer M. Freedman and Andrew Clapham
Mortsel, Belgium, Sept. 27 (Bloomberg) -- Agfa-Gevaert NV, Europe's biggest maker of film, said it may slash as much as 18 percent of its workforce and close factories to offset slowing demand for films and printing machines.
Agfa may cut as many as 4,000 jobs over the next 15 months and shut an unspecified number of its 40 factories to trim costs. It plans to take a charge of 550 million euros ($505 million) over the course of 2001 and 2002 to pay for the reorganization. Agfa's shares rose as much as 7.3 percent, their biggest percentage gain.
``Finally they are acting very strongly in terms of the market conditions they are living in,'' said Rene Clerix, who manages 500 million euros in European equities at Cordius Asset Management in Brussels.
Slackening economic growth and the use of digital technology have clipped demand for the products of Agfa and rivals. Eastman Kodak Co., the biggest photography company, said last week it plans more job cuts on top of 3,500 announced in April. This marks Agfa's second round of cost cutting since 1999.
``There was a slowdown in the economy, first in the U.S. and now in Europe,'' said Christian Vermeulen, a spokesman for Agfa. ``Now we see in the printing business less advertising and less printing jobs.''
Shares of Agfa, whose customers include Pearson Plc's Financial Times, rose as much as 90 cents to 13.20 euros. The stock had fallen by half this year, compared with a 17 percent drop in Belgium's Bel20 index.
Falling Profit
Afga said it's aiming for a ``permanent decrease'' in operational costs of about 550 million euros and a 500 million euro reduction in working capital.
``Substantial beneficial effects'' of the reorganization will begin by 2003 and will reach ``full impact'' starting in 2004, the company said. Agfa said it began discussions with unions this morning about the plan.
``A one-time estimated restructuring cost of 550 million euros, which could be equivalent to a reduction of 4,000 jobs, will be spread over the years 2001-2002,'' the Mortsel, Belgium- based company said in a statement.
``The restructuring plan itself seems to be quite ambitious,'' said Dirk Pattyn, an analyst at Bank Degroof, who rates the stock ``hold.''
In August, Agfa said net income fell 61 percent in the first six months of the year to 31 million euros as sales dropped 5.5 percent. The company has said it expects a 35 percent decline in operating profit and 4 percent drop in sales this year.