Belgian imaging technology group Agfa-Gevaert has said almost 2,000 jobs are under threat despite reporting an unexpectedly strong rise in second-quarter operating profit.
The company, which specialises in healthcare imaging and equipment for the printing industry, said its earnings before interest and tax (EBIT) rose 42.6 per cent to €77 million on sales of €859 million.
Analysts had expected EBIT of €51 million, according to the median forecast from a Reuters poll of six analysts, and sales of €886 million.
Agfa announced plans in June to achieve annual costs savings of €250 million by 2008 after splitting into three independent businesses - healthcare, graphics and materials. This morning Agfa said this would be achieved by streamlining each division.
It added that it expected to book a significant part of the anticipated restructuring costs of €250 million in the last quarter of the year.
Since its public listing in 1999, Agfa has undergone restructuring to cut costs and switch its products to digital from analogue technology. The sale of its traditional photographic film business in 2004 was the most dramatic outcome of this restructuring.