Stora Enso plans to restructure its operations through the permanent shutdown of two newspaper machines in Sweden. Stora Enso also plans efficiency improvements in the Printing and Reading customer service and the Building and Living Business Area. The profitability improvement actions are planned to reduce annual costs by EUR 54 million and reduce the number of employees by approximately 600 altogether.
Printing and Reading plans the permanent shutdown of paper machine (PM) 2 at Hylte Mill in Sweden with annual capacity 205 000 tonnes of newsprint and PM 11 at Kvarnsveden Mill in Sweden with annual capacity 270 000 tonnes of newsprint in the second quarter of 2013. This represents 3.4% of European newsprint capacity. The plans to shut down capacity are due to continuing structural weakening of newsprint demand in Europe.
In addition, Stora Enso plans to create a common platform for all its Printing and Reading sales desk, order handling and logistic services in Europe to improve customer service. These processes currently handled at seven customer service centres, mills and logistic service centres will be centralised into five customer service centres located in Finland, Sweden, Germany, Belgium and the UK. It is planned to establish a separate Logistics Service Centre for overseas business in Gothenburg, Sweden to serve all Stora Enso’s Business Areas.
Q4 2012 (compared with Q4 2011)
• Operational EBIT EUR 10 million higher than in Q4 2011 at EUR 155 (EUR 145) million mainly due to lower costs, EUR 20 million lower than in Q3 2012 (EUR 175) million driven by seasonally higher fixed costs.
• Strong cash flow from operations at EUR 471(EUR 302) million and strong liquidity at EUR 1 845 (EUR 1 134) million.
• Operational ROCE 7.1% (6.7%).
Full Year 2012 (compared with 2011)
• Operational EBIT EUR 248 million lower than in 2011 at EUR 618 (EUR 867) million mainly due to lower sales prices.
• Improved cash flow from operations at EUR 1 253 (EUR 1 034) million.
• Ratio of net debt to the last twelve months’ operational EBITDA 2.5 (2.1).
Gannett Co., Inc., a leading international media and marketing solutions company, today reported strong fourth quarter financial results. Earnings per diluted share, on a GAAP (generally accepted accounting principles) basis were $0.44 for the fourth quarter of 2012 compared to $0.49 for the same quarter last year. Excluding special items in both years, fourth quarter earnings per diluted share were $0.89 in 2012 compared to $0.72 in the fourth quarter of 2011, a 23.6 percent increase.
Net income attributable to Gannett was $103.1 million in the fourth quarter of 2012. Net income attributable to Gannett on a non-GAAP basis increased 20.2 percent to $207.3 million from $172.4 million in 2011. Operating income totaled $220.4 million in the quarter. Non-GAAP operating income including strategic initiative investments of $14.1 million but excluding special items and the extra week totaled $320.3 million, up 10.2 percent compared to the fourth quarter last year. Operating cash flow in the quarter (a non-GAAP term defined as operating income plus special items, depreciation and amortization) was $384.7 million compared to $339.2 million in the fourth quarter a year ago. Excluding the extra week operating cash flow was up 9.1 percent.
Total operating revenues for the company were $1.52 billion in the fourth quarter, a 9.4 percent increase compared to the fourth quarter last year. A substantial increase in Broadcasting segment revenues, higher Publishing segment revenues as well as the extra week in the quarter drove the increase. The increase in Broadcasting segment revenues reflects a record level of political spending in the quarter. Significantly higher circulation revenue in the Publishing segment resulting from the positive impact of the all access content subscription model more than offset a decline in advertising revenues. Digital segment revenues were up due primarily to revenue growth at CareerBuilder. Excluding the extra week in the quarter, total operating revenues were 4.8 percent higher than the year ago quarter.
With the help of Focus on Energy, Wisconsin utilities’ statewide program for energy efficiency and renewable energy, and in partnership with Xcel Energy, Flambeau River Papers has implemented an energy efficient Sulfur Burner and Heat Recovery Steam Generator that will save over 600,000 therms of natural gas annually.
Sulfur burners are used to create sulfur dioxide (SO2) that is mixed with water and is used to remove lignin from the pulp fibers used to make paper. Prior to mixing with water for use in the lignin process, the SO2 must be cooled down from it combustion temperature.
Focus on Energy introduced this new technology to Flambeau River Papers in 2010, provided technical assistance, including energy savings calculations to help justify the project and offered a grant of $250,000 and a $467,837 loan through its Emerging Technology Program. “We wouldn’t have implemented this technology without the technical and financial support of the Focus on Energy Program, ”said Randy Stoeckel, President of Flambeau River Papers.
Since it’s reopening in 2006, Flambeau River Papers has saved nearly $11 million in natural gas and electricity costs by implementing both best practices and emerging technologies.
With the growth of color pages still a sweet spot for printers, Xerox’s two new digital presses make it easier to capture more lucrative jobs, ranging from photo books and brochures to direct-mail pieces and catalogs.
The Xerox Color J75 and C75 Presses are geared for various production settings, including in-plant operations, quick printers, commercial printers, creative agencies, photo specialty retailers and departmental environments. The press’ productivity features and media handling will appeal to both seasoned digital professionals and those entering the market.
Impressed with the Xerox Color J75 at first sight, Demark-based Jyske Bank purchased two presses. “Print is one of the ways we build and maintain our customer relationships. The J75 offers many high-end press features in a smaller footprint with very impressive print quality,” said Carsten Gaarde, print shop manager, Jyske Bank.
Responding to customer requirements for alignment and registration accuracy, both presses are equipped with new tools designed to simplify the way customers achieve image quality consistency and maximize press uptime. Users can easily automate registration control and adjust density uniformity without the need of a technician.
Glossy products still look best on the glossy page.
Advertising for luxury brands is driving increases in first-quarter ad pages at big magazine publishers, a welcome dose of good news for companies that have grappled with layoffs, restructurings and general malaise in a business whose fortunes have fallen as the online world has grown.
Conde Nast, Hearst Magazines, Time Inc and Rodale all expect a rise in ad pages sold in their magazines for the first quarter.
Conde Nast, whose magazines include Vogue, GQ and Vanity Fair, expects its strongest first-quarter in five years, with a 5 percent increase in ad pages. The news was so unusual that the company even issued a press release on the subject, something it hasn't done in sometime.
And as Europe remains mired in an economic slump, high-end fashion brands like Hermes are finding a ripe audience in U.S. magazines.
"What I hear continually from research about luxury advertising is that consumers like the actual experience of print," said Brenda White, a senior vice president and a director of publishing at Starcom USA, a division of Publicis Group SA.
Company executives said the gains are not coming at the expense of lower prices.
With ad spending up 3.3 percent YOY from January to September 2012 and a significant bump in ad spending during Q3 of 4.3 percent, advertisers by and large chose Television advertising as the favored media through which to communicate with consumers according to Nielsen’s quarterly Global AdView Pulse report.
When looking at all media types measured within Neilson's report, all media types saw increases in advertising spend year-to-date, with the sole exception of Magazines. Brands continued to invest less in this medium, with a -1.3 percent decrease in YOY spending from January to September 2012, and a deeper -1.8 percent decrease when looking at just the third quarter. Though the Asia Pacific sustained its investments (+5.3%), supported by key markets like China (+10.6%) and Japan (+3.8%), advertisers in both North America (-3.2%) and Europe (-6.8%) decreased budgets on Magazines
On a slightly more positive note for magazine brands, display Internet advertising (measured in a smaller subset of countries), saw a +7.7 percent YOY increase in advertising from January to September 2012, due to budget increases from Financial, FMCG, and Telecommunications advertisers. Magazine brands garnered almost 8% of this increase.
A newly formed joint venture between Mark Harris, co-founder and co-owner of National Publisher Services (NPS), and David Fry, chairman of NPI Ventures LLC and CTO of Fry Communications, called I-5 Publishing LLC has acquired the books, magazines and websites of special interest publisher BowTie Inc.
Terms of the deal were not released, but Harris and Fry ballparked it at $10 million-plus. Included in the sale are Cat Fancy, Dog Fancy, Pet Product News International, Horse Illustrated, Urban Farm, AnimalNetwork.com, DogChannel.com and books like Dog Heroes of September 11th and The Original Dog Bible.
I-5 Publishing LLC, Harris and Fry’s new venture, is the latest in a series of professional partnerships between the two executives and their respective companies—NPI Ventures owns 50 percent of NPS, which acquired Circulation Specialists Inc. in 2011, as previously reported by FOLIO:.
Brent crude retreated from its highest closing level in more than four months in London as the prospect of renewed talks between western governments and Iran spurred speculation that last week’s gains were excessive.
Futures slipped as much as 0.6 percent, while West Texas Intermediate halted its longest stretch of weekly advances in more than eight years. Iran considers an offer to negotiate directly with the U.S. over its nuclear program a “step forward” and expects to resume meetings with world powers later this month, Foreign Minister Ali Akbar Salehi said. Brent’s 14- day relative strength index was at 70, a technical level that suggests prices have climbed too quickly.
“It reduces the risk that Middle East tensions, or Iran tensions, will increase in the short term and bring oil prices substantially higher,” said Hannes Loacker, an analyst at Raiffeisen Bank International AG in Vienna, who predicts Brent will average $114 a barrel this quarter.
Brent for March settlement slid as much as 72 cents to $116.04 a barrel on the London-based ICE Futures Europe exchange, and was at $116.10 at 10:42 a.m. local time. It closed at $116.76 on Feb. 1, the highest since Sept. 13.
Neenah Paper is announcing a price increase of approximately 2% on select Brights, Writing, Text and Cover brands effective with shipments March 4, 2013. Orders entered before today's date and those received and scheduled to ship before March 4th will ship at today's price. All existing contract business will be reviewed within the agreed upon terms of the contract.
In addition, we are aligning the price for Exact® Index, Tag and Vellum Bristol Papers. We will be eliminating basis weight differentials effective with shipments March 4, 2013. This price alignment, designed for ease of doing business, will result in a maximum $1.50/cwt. increase on select items and up to a $1.25/cwt. decrease on others.
UPS today announced record 2012 fourth quarter and full year adjusted diluted earnings per share of $1.32 and $4.53 respectively, with the U.S. Domestic segment leading the way. The company generated annual free cash flow of approximately $5.4 billion, a testament to operations execution and the emphasis UPS places on capital efficiency. UPS estimates that Hurricane Sandy reduced earnings per share by approximately $0.05.
UPS recorded a fourth quarter mark-to-market, non-cash, after-tax charge of $3.0 billion for its company-sponsored pension and post-retirement benefit plans. Although the plans exceeded their expected rate of return, these incremental gains were more than offset by a 120 basis point decline in year-end discount rates. As a result, on a GAAP basis, diluted earnings per share for the quarter fell to a loss of $1.83. For the full year, reported diluted earnings per share were $0.83. This adjustment does not affect cash flow, required pension funding or benefits paid to plan participants.
Twin Rivers Paper Company, a leader in lightweight specialty packaging, label and publishing papers, announced significant inroads the company has made in environmental improvements. Since 2006, Twin Rivers has reduced its greenhouse gas emissions by 76 percent and now derives 83 percent of its energy from carbon-neutral sources.
Twin Rivers has beneficially reused 93 percent of its solid process by turning this waste stream into compost, fuel, land applications, and value-added raw materials. The company has also reduced its electrical consumption each year through the installation of variable-speed motors. They installed a system that replaces fresh water with processed water, saving nearly a million gallons of water every day, approximately equivalent to one and a half Olympic size swimming pools. By the end of 2013, the company will complete an initiative to reduce up to 85% of the odor from its Edmundston operations.
“We are tackling environmental projects that minimize our environmental footprint,” says Roland Leger, Manager of the Edmundston Pulp Mill. “We are firmly committed to completing the odor-reduction project by the end of 2013.”
Consolidated sales for the three-month period ended December 29, 2012, were $376 million, as compared to $401 million in the comparable period of the prior year. The Company generated a net loss of $10 million or $0.10 per share in the December 2012 quarter compared to a net loss of $16 million or $0.16 per share in the December 2011 quarter. Operating earnings before depreciation, amortization and other items (adjusted EBITDA) was $19 million for the three-month period ended December 29, 2012, as compared to adjusted EBITDA of $12 million a year ago and adjusted EBITDA of $23 million in the prior quarter.
The Specialty Cellulose Pulp segment generated adjusted EBITDA of $18 million on sales of $103 million for the quarter ended December 29, 2012, compared to adjusted EBITDA of $25 million on sales of $127 million in the prior quarter.
The Paper segment generated adjusted EBITDA of $6 million on sales of $78 million for the quarter ended December 2012, compared to adjusted EBITDA of $14 million on sales of $96 million in the prior quarter.
The Forest Products segment generated adjusted EBITDA of $2 million on sales of $101 million for the quarter ended December 29, 2012, compared to adjusted EBITDA of $8 million on sales of $108 million in the prior quarter.
The Paper Pulp segment generated nil adjusted EBITDA on sales of $117 million for the quarter ended December 29, 2012, compared to negative adjusted EBITDA of $18 million on sales of $140 million in the prior quarter.
TC Media is pleased to announce that it has acquired all of the shares of Groupe Modulo, publisher of French-language educational resources and materials and a subsidiary of Nelson Education. This transaction brings Groupe Modulo into the Media Books and Education Division of TC Media, which also includes Chenelière Éducation, the leading publisher of French-language educational resources in Canada, Les Éditions Caractère and Les Éditions Transcontinental.
This transaction enriches TC Media’s educational offering, further strengthening its leading position in higher education in Québec and enhancing its presence in the educational market in French communities across the country. Groupe Modulo is an educational publisher that serves every level of the school system, from kindergarten to university, in the French and French-immersion markets across Canada. Its textbooks and innovative materials meet the learning needs of pupils and students, as well as the professional development needs of educators.
For the four weeks ended Jan. 26, 2013, same store sales increased 0.3 percent over the prior-year period. January front-end same store sales increased 4.2 percent, of which 2.4 percent was attributable to flu-related over-the-counter products. Pharmacy same store sales, which included an approximate 665 basis points negative impact from new generic introductions, decreased 1.4 percent. Prescription count at comparable stores increased 5.0 percent over the prior-year period, of which 3.4 percent was attributable to flu-related prescriptions and flu shots.
Same store sales for the 47-week period ended Jan. 26, 2013 increased 0.1 percent over the prior-year period. Front-end same store sales increased 1.6 percent while pharmacy same store sales decreased 0.7 percent. Prescription count at comparable stores increased 3.7 percent over the prior-year period.
Resolute Forest Products today announced the construction of a new sawmill in the area of Atikokan, Ontario. This investment reflects Resolute's ongoing commitment to the solid wood business and will provide significant economic opportunities for First Nations in the region.
The Atikokan project will involve the construction of a single line random length (16 ft) sawmill with an annual capacity of 150 million board feet. Approximately 90 people will be directly employed by the operation, and additional indirect positions will be created for hauling finished lumber and residual chips. Final site selection in the Atikokan area will be completed in the next few weeks, and construction is anticipated to begin in the spring, with completion targeted for early 2014. The capital cost of the project is estimated at C$50 million.
"We believe in our solid wood business and we're taking action to grow and improve it. The new random length sawmill will complement our existing lumber product mix in Ontario and will allow Resolute to improve its product offering to customers in central Canada and key markets in the United States," stated Richard Garneau, President and Chief Executive Officer. "We are particularly excited about the active involvement of First Nations in the project and the opportunity for shared economic benefit that this represents."
Domtar Corporation today reported net earnings of $19 million ($0.54 per share) for the fourth quarter of 2012 compared to net earnings of $66 million ($1.84 per share) for the third quarter of 2012 and net earnings of $61 million ($1.63 per share) for the fourth quarter of 2011. Sales for the fourth quarter of 2012 amounted to $1.3 billion.
Excluding items listed below, the Company had earnings before items1 of $46 million ($1.31 per share) for the fourth quarter of 2012 compared to earnings before items1 of $67 million ($1.87 per share) for the third quarter of 2012 and earnings before items1 of $93 million ($2.49 per share) for the fourth quarter of 2011.
There’s no packaging material that holds up a mirror to the multifaceted, splintered era of sustainability better than paper, and no member of that category does it better than recycled-content corrugated boxes. Well before sustainability gained its prominence, the environmental- friendliness of corrugated boxes was widely acknowledged, given that they are derived from a renewable resource and their strength-to-weight ratio provides product protection along with cost-savings and efficiencies throughout the supply-chain. While no type of packaging is perfect, corrugated boxes, comparatively, are darned close; therefore, the further pursuit of perfection should be done judiciously, lest the end results prove worse than the starting circumstances.
Recycling is a pillar of sustainability and corrugated boxes, being made of paper, indeed, are recyclable. But that doesn’t dismiss considerations regarding what’s to be done with that recycled material. There are a variety of paper products with end uses that justify a recycled content—all the way up to 100%. Maintaining an end-use focus, what are the limitations for incorporating recycled corrugated into the manufacture of new corrugated boxes? The question divides into: should corrugated boxes contain recycled content at all; and, if so, what percent of recycled content is practical?
Harte-Hanks, Inc. today reported fourth quarter 2012 diluted earnings per share from continuing operations of $0.23 on revenues of $204.8 million. Excluding $1.3 million of facility closure costs, diluted earnings per share from continuing operations was $0.24. These results compare to diluted earnings per share from continuing operations of $0.24 on $215.1 million in revenues for the fourth quarter of 2011.
For the three months ended December 31, 2012, the company generated free cash flow (defined below) of $13.3 million, a decrease from $16.2 million in the prior year’s fourth quarter. Capital expenditures for the quarter were $5.5 million compared to $4.6 million in the prior year’s fourth quarter.
For the year, the company’s revenues decreased to $767.7 million compared to $811.6 million last year. The annual financial results reflect the second quarter non-cash income statement charge for the impairment of Shoppers goodwill. Excluding this item, 2012 operating income from continuing operations was $67.0 million compared to $78.1 million and diluted earnings per share from continuing operations for the year were $0.62 compared to $0.72 for 2011.
Backstage, the niche magazine for the acting and modeling community, is expanding its scope with the acquisition of Sonicbids, a social music marketing platform that connects bands, promoters, consumer brands and music fans.
This is the first major deal since the parent company of Backstage, Guggenheim Digital Media, changed its name from Prometheus Global Media and tapped former Yahoo! exec Ross Levinsohn as its CEO earlier this month.
According to The New York Times, the deal is estimated to be worth $15 million—a number John Amato, chairman and CEO of Backstage Media, declined to confirm.
“Sonicbids is kind of like Backstage but for musicians and it’s like LinkedIn for musicians,” says Amato. “Sonicbids is the number-one platform for bands and some DJs to find gigs. If you were a band you would use Sonicbids to find your next show—it’s a job platform for creative artists.”
Backstage has long been used as a resource guide for the acting and modeling community. When the magazine announced the re-launch of its publication in April, and rolled out its redesigned properties in August, a heavy emphasis was placed on career utility. Amato says this type of job board compliments the existing Backstage structure and also expands its scope.
AAA Fuel Gage 2/01/13
National Unleaded Regular:
Current Average - $3.462/gallon
Month Ago Average - $3.291/gallon
Year Ago Average - $3.455/gallon
Highest Recorded Average - $4.114/gallon on 7/17/08
Current Average - $3.944/gallon
Month Ago Average - $3.915/gallon
Year Ago Average - $3.877/gallon
Highest Recorded Average - $4.845/gallon on 7/17/08
Current Exchange Rates as of 2/01/13
American Dollar to Canadian Dollar = 0.1.000737
American Dollar to Chinese Yuan = 0.160507
American Dollar to Euro = 1.364309
American Dollar to Japanese Yen = 0.010857
American Dollar to Mexican Peso = 0.078548
Oil headed for the longest run of weekly gains in more than eight years in New York before a report that may show the U.S. added jobs last month, signaling economic recovery in the world’s biggest crude consumer.
West Texas Intermediate, little changed today, is poised for an eighth weekly advance, the most extensive since August 2004. U.S. employers probably added 165,000 workers last month after a 155,000 increase in December, according to a Bloomberg News survey before Labor Department data. Israeli jets hit Syrian trucks carrying anti-aircraft missiles for the Islamic militant group Hezbollah Jan. 29, according to an official who asked not to be named.
“Oil prices have shown some real momentum,” said Michael Poulsen, an analyst at Global Risk Management Ltd., who predicts that geopolitical risk may push the Brent crude in London to $120 a barrel in the next two months. “U.S. unemployment figures, while not improving as fast as hoped for, are definitely pulling things in the right direction.”
Crude for March delivery was at $97.14 a barrel, down 35 cents, in electronic trading on the New York Mercantile Exchange at 11:23 a.m. London time.
On the basis of preliminary and unaudited figures, Bertelsmann has increased its Group revenues to around €16 billion (previous year: €15.4 billion) in the 2012 fiscal year. Growth amounted to around five percent, about three percent of it organic. At €1.7 billion, operating EBIT matched the previous year’s high level. This includes investments and scheduled start-up losses for digitization projects and new businesses. The Group’s Return on Sales once again exceeded the 10-percent mark.
Net financial debt at the end of the year was down to €1.2 billion (December 31, 2011: €1.8 billion) thanks to the high level of funds released from operations. This resulted in a good ratio compared to operating EBITDA which, like the previous year, totaled approx. €2.2 billion.
Bemis Company, Inc. today reported 2012 full year diluted earnings of $1.66 per share on net sales of $5.1 billion. Excluding the effect of facility consolidation and acquisition related integration charges detailed in the attached schedule, “Reconciliation of Non-GAAP Earnings Per Share”, adjusted diluted earnings for 2012 would have been $2.15 per share. Excluding the impact of currency, 2012 net sales was substantially unchanged from 2011 as lower unit sales volumes during 2012 were offset by improved sales mix and the impact of acquisitions.
HIGHLIGHTS OF THE FULL YEAR 2012:
•Adjusted diluted earnings per share increased 8.0 percent to $2.15 from $1.99 in 2011.
•Gross profit as a percent of net sales improved to 18.4 percent compared to 17.1 percent in 2011.
•Bemis' facility consolidation program contributed savings of approximately $8 million in 2012.
•Cash provided by operations totaled $421 million, reflecting continued emphasis on cost management.
Neenah Paper, Inc. announced today that it has completed the purchase of certain premium business paper brands from the Southworth Company. These brands, including Southworth(R), the category leader, are sold largely to major retail customers such as Staples, Office Depot, Office Max and Walmart. Annual sales from the acquired brands are approximately $20 million.
"As the market leader in premium papers, this is a natural extension of our Fine Paper business. The addition of Southworth's well-regarded brands allows us to expand our presence in the retail channel and fits with our strategy to grow in profitable niches that value image and performance," said Julie Schertell , President - Fine Paper. "We have been pleased with the reception from our customers and our team is excited to market these brands as part of Neenah's portfolio."
Vistaprint N.V., a leading online provider of professional marketing products and services to micro businesses and the home, today announced financial results for the three month period ended December 31, 2012, the second quarter of its 2013 fiscal year.
Second quarter 2013 results:
• Revenue grew 16 percent year over year to $348.3 million
• Revenue grew 17 percent year over year excluding the impact of currency exchange rate fluctuations
• Revenue grew 14 percent year over year excluding the impact of currency exchange rate fluctuations and revenue from acquisitions
NewPage, the leading producer of printing and specialty papers in North America, announced today the launch of TrueJet® Book, a new addition to its award-winning TrueJet® Digital Coated Papers for production inkjet presses.
TrueJet Digital Coated Papers enable high speed, short run and variable data printing on production color inkjet equipment or related hybrid applications with offset class print quality and reduced total operating cost for the printer or publisher. Unlike conventional coated offset papers, TrueJet Digital Coated Papers are made with a combination of materials that result in improved inkjet ink dry times, improved inkjet print quality and productivity while maintaining the capability for offset printability in hybrid applications.
"The inkjet publishing segment is rapidly growing as books that were traditionally printed web offset are converted to inkjet printing," said Steven J. DeVoe, vice president, Marketing for NewPage. "TrueJet Book is designed specifically for high-speed, book publication print runs, is Forest Stewardship Council™ (FSC®) certified and meets NASTA (National Association of State Textbook Administrators) specifications."
"TrueJet Book is offered in a 45 lb. matte finish and delivers offset-like quality for full-color variable inkjet presses to meet the requirements of our book publishing customers," added Dennis Essary, director, Digital Papers for NewPage. "Customers who are looking for a better value proposition from an inkjet grade have a new option for the book publishing market based on the award-winning TrueJet design."
The U.S. Postal Service saved more than $52 million in 2012 by reducing energy, water, consumables, petroleum fuel use and solid waste to landfills, and generated nearly $24 million in revenue by recycling. Together, these actions to save costs and generate revenue surpassed $76 million.
Employee green teams played a key role in helping the Postal Service achieve the savings and revenue, part of which included nearly $12 million in vehicle fuel cost avoidance, more than $10 million in facility energy savings, water savings of nearly $1 million and a decrease in supplies spending of nearly $4 million. Green teams helped the Postal Service recycle more than 253,000 tons of material, which saved more than $25 million in landfill fees.
“Across the country, postal employees are participating in more than 850 green teams," said Chief Sustainability Officer Thomas G. Day. “Motivated by a desire to be good stewards of the environment, and our sustainability call to action, ‘leaner, greener, faster, smarter,’ employee green teams are helping the Postal Service achieve positive results in energy reduction and resource conservation.”
Green teams are another way the Postal Service fosters a culture of conservation, building on the agency’s long history of environmental and socially responsible leadership. The teams help identify and implement low- and no-cost sustainable practices to help the Postal Service meet the following goals by 2015:
•Reduce facility energy use by 30 percent compared to 2003,
•Reduce water use by 10 percent compared to 2007,
•Reduce petroleum fuel use by 20 percent compared to 2005 and
•Recycle 50 percent of all solid waste compared to 2009.
• Earnings per share excluding special items were EUR 0.19 (0.16), and reported EUR -2.84 (0.20)
• EBITDA was EUR 301 million, 11.4% of sales (301 million, 11.2% of sales)
• Impairment charges of EUR 1,779 million were recorded in the Paper business area
• Operating cash flow continued to be strong at EUR 352 million
• Earnings per share excluding special items were EUR 0.70 (0.93), and reported EUR -2.39 (0.88)
• EBITDA was EUR 1,269 million, 12.2% of sales (1,383 million, 13.7% of sales)
• Net debt decreased by EUR 582 million to EUR 3,010 million
”In 2012, UPM’s financial position remained stable. The profitability of our businesses continued at similar level as in 2011, UPM EBITDA for the full year was slightly lower, and the operating cash flow remained strong. The Q4 result was well in line with the comparison periods and the cash flow was strong. During the year, we were able to reduce our net debt by EUR 582 million. Considering the volatile economic environment last year, this is a noteworthy achievement.
With respect to our growth businesses, Energy was an outstanding performer. Additionally, Pulp and Label as well as UPM’s paper business in Asia continued to perform well. For Pulp, the decrease in market prices meant a clear decrease in the operating profit, however.
In other businesses, the earnings development was positive in spite of the challenging economic environment.
Crown Holdings, Inc. today announced its financial results for the fourth quarter and year ended December 31, 2012.
Net sales in the fourth quarter were $2,037 million compared to $2,058 million in the fourth quarter of 2011, primarily due to the pass through of lower material costs.
Fourth quarter gross profit was $281 million compared to $289 million in the 2011 fourth quarter and included an increase of $2 million from foreign currency translation.
Fourth quarter selling and administrative expense was $94 million compared to $97 million in the prior year quarter.
Catalyst Paper announced today that it has completed the US Court approved sale of the Snowflake assets and shares of Apache Railway. The Hackman Capital-led buyer group purchased the assets of the closed Snowflake facility and the shares of Apache Railway for US$13,460,000 and other non-monetary consideration. The transaction received local support from the Town of Snowflake and other interests, based on the buying group’s intention to continue to operate the Apache Railway as a going concern.
“The successful completion of this transaction will assist Catalyst in reducing its interest obligations and improve overall liquidity,” said President and Chief Executive Officer Kevin J. Clarke. “With challenging markets and currency impacts to contend with, we are maintaining tight control of spending on all fronts and making the sale of all remaining non-core assets a priority.”
Aided by the sale of the Snowflake assets and the sale of inventories and realization of accounts receivable associated with the Snowflake closure, Catalyst has been able to repay substantially all of its cash drawings under its ABL facility leaving only customary letters of credit and a minimal cash drawing outstanding under the facility at this point in time. Drawings under the ABL facility fluctuate with Catalyst’s working capital needs from time to time.
Oil traded near the highest price in more than four months in New York as the Federal Reserve maintained an asset-purchase program to boost the economy of the world’s largest crude-consuming nation.
West Texas Intermediate was little changed, heading for the biggest monthly gain since August. The Fed will keep buying securities at a rate of $85 billion a month, the Federal Open Market Committee said after a two-day meeting. German unemployment unexpectedly declined in January for the first time in 10 months, adding to signs that Europe’s largest economy is gathering pace. Oil gained a third day yesterday even after data showed U.S. crude stockpiles rose twice as much forecast.
“The Fed is still providing enough money,” said Andy Sommer a senior oil analyst at Axpo Trading AG in Dietikon, Switzerland. “I’m pretty optimistic on the demand side. But there’s an ongoing supply overhang and prices should come down in the spring.”
WTI for March delivery was at $97.68 a barrel in electronic trading on the New York Mercantile Exchange, down 26 cents, as of 11:51 a.m. London time.
Continuing operations January-December 2012 compared with January-December 2011
•Net sales EUR 1,010.8 million (EUR 1,025.8 million).
•Operating profit EUR 18.6 million (EUR 2.1 million).
•Operating profit excluding non-recurring items EUR 17.9 million (EUR 29.6 million).
•Operating margin excluding non-recurring items 1.8% (2.9%).
•Profit before taxes EUR -5.7 million (EUR -22.3 million).
1-800-FLOWERS.COM, Inc., the world's leading florist and gift shop, today reported revenues from continuing operations of $253.0 million for its fiscal 2013 second quarter ended December 30, 2012, compared with revenues from continuing operations of $239.8 million in the prior year period. The Company said the 5.5 percent increase, or $13.2 million, reflected growth across all three of its business segments, driven primarily by its Gourmet Food and Gift Baskets segment, which grew 8.9 percent, or $11.6 million, to $142.7 million compared with $131.1 million in the prior year period.
Gross profit margin for the quarter was 41.3 percent compared with 41.8 percent in the prior year period, primarily reflecting product mix associated with strong wholesale gift basket growth in the Company's Gourmet Food and Gift Baskets segment. Operating expenses as a percent of revenue improved 60 basis points to 31.0 percent compared with 31.6 percent in the prior year period. The improved operating expense ratio primarily reflects the increased revenues for the quarter as well as the Company's continued focus on improving leverage across its business platform.
Adjusted EBITDA from continuing operations for the quarter increased 3.6 percent to $31.8 million compared with Adjusted EBITDA of $30.7 million in the prior year period. Net income from continuing operations was $16.0 million, or $0.24 per diluted share, compared with adjusted net income from continuing operations of $14.3 million, or $0.22 per diluted share, in the prior year period.
Owens-Illinois, Inc. today reported financial results for the full year and fourth quarter ending December 31, 2012.
• Full year 2012 earnings from continuing operations attributable to the Company were $1.12 per share (diluted), compared with a loss of $3.06 per share in 2011. Excluding certain items management considers not representative of ongoing operations, adjusted earnings (non-GAAP) were $2.64 per share in 2012, compared with $2.43 per share in 2011. Full year 2012 adjusted earnings were up nearly 9 percent despite substantial foreign currency headwinds.
• Fourth quarter 2012 adjusted earnings were $0.40 per share, compared with $0.48 per share in the same period of 2011. As expected, adjusted earnings were dampened by lower segment operating profit, primarily in Europe. This decrease was partially offset by a lower effective tax rate.
• O-I generated $290 million in free cash flow (non-GAAP) for the full year 2012, up more than 30 percent from 2011. The increase was driven by growth in earnings and improvements in working capital management. The Company's leverage ratio improved to 2.67 times EBITDA at year end 2012, compared to 2.88 times EBITDA at the end of prior year.
R. R. Donnelley & Sons Company today announced that its operations in India have been recognized with the NASSCOM Award for Excellence in Diversity and Inclusion as the Best Business Process Outsourcing Company in the less than 5,000 employees category.
NASSCOM, India's National Association of Software and Services Companies, recognized RR Donnelley at its Diversity & Inclusion Summit 2013 held recently in Bangalore.
"We are very proud that our diversity and inclusion practices have been recognized with this prestigious award," said Dan Knotts, RR Donnelley's Chief Operating Officer. "Thousands of companies' submissions were evaluated with regard to how their policies and practices promote inclusion and enable employees to contribute to the success of their enterprises at all levels. We believe that creating an environment which values our employees' diverse talents and experiences helps us to offer the best possible service to our customers."
The owners of Royal Printing and Modern Printing have announced plans to merge their two companies.
Dan Asbury of Royal Printing and Kevin Curran of Modern Printing are combining the two long-time Quincy companies into one production facility.
Beginning February 1, the two companies will continue to do business as Royal Printing. Asbury, who bought Royal in 2001, said the climate was right to make the move.
“The industry has evolved into more than just printing stationery, brochures and business forms,” Asbury said. “Technology keeps advancing and now many customers need more color and faster turn-around, for short runs as well as larger quantities. Kevin and I realized if we worked together we’d be able to more efficiently handle the needs and demands of all our customers.”
Curran, who with Dave Rees bought Modern Printing in 2000, says both businesses have seen steady growth over the years.
“We’ve been very fortunate by staying ahead of the curve in the shift to digital printing and this joint venture enables us to combine the best of our equipment and manpower, which will keep us growing for years to come.”
Over the next several days and weeks, Modern Printing will gradually move to the Royal Printing facility on Ellington Road. Asbury and Curran will work together managing the combined operation while Rees will step aside as a partner and instead concentrate on his family business, Rees Construction.
The rumored and significant cuts at Time Inc. have begun today. According to an internal memo from CEO Laura Lang, about six percent of the company's 8,000 employees will be let go—close to 500 people.
According to the memo, the cuts are impacting a variety of areas throughout the company, both domestically and internationally.
"With the significant and ongoing changes in our industry, we must continue to transform our company into one that is leaner, more nimble ad more innately multi-platform. To make this change, we need to operate as smartly and efficiently as possible to create room for critical investments and new initiatives," says Lang in the memo, the full copy of which is below.
The company has not had a round of layoffs of this size since 2008 when then-CEO Ann Moore unleashed a wave of cuts of just about the same size. About 600 employees were let go, accompanying a major restructuring that organized brands under three main groups: News, Style & Entertainment and Lifestyle.
Today's cuts come just ahead of Time Warner's 4Q and full-year 2012 earnings call, scheduled for February 6th. For the first nine months of 2012, revenues slipped 6 percent in the publishing group compared to the same period in 2011. Operating income dropped 38 percent.
Avery Dennison Corporation today announced preliminary, unaudited fourth quarter and full-year 2012 results. All non-GAAP financial measures referenced in this document are reconciled to GAAP in the attached tables. Unless otherwise indicated, the discussion of the company’s results is focused on its continuing operations, and comparisons are to the same period in the prior year.
“Avery Dennison delivered strong earnings improvement in 2012,” said Dean Scarborough, Avery Dennison chairman, president and CEO. “Both Pressure-sensitive Materials and Retail Branding and Information Solutions delivered solid sales growth and expanded margins, and we returned $346 million of cash to shareholders through share repurchases and an increased dividend.
“We also took actions that position us well for significant profit growth in 2013, even in a soft economic environment,” Scarborough said. “We remain committed to delivering on our long-term goals, including double-digit earnings growth and higher returns.”
MeadWestvaco Corporation, a global leader in packaging and packaging solutions announced that total sales in the fourth quarter of 2012 increased 4 percent to $1.33 billion compared to fourth quarter of 2011. Excluding the effect of unfavorable foreign currency exchange, sales grew 6 percent due to increased volume of higher value products across most of the company’s targeted packaging and specialty chemicals markets, as well as from higher land sales. During the quarter, the company had gains from its commercial excellence and innovation initiatives that resulted in volume and market share growth in medical dispensers, fragrance sprayers, beverage multi-packs, aseptic liquid packaging, targeted food packaging and new chemical formulations for adhesives and oilfield drilling markets. The company also benefited from the acquisitions of Polytop (caps and closures), Ruby Macons Ltd. (corrugated packaging materials) and Resitec (specialty chemicals).
Pretax income from the company’s business segments increased 29 percent to $132 million in the fourth quarter of 2012 compared to $102 million in the fourth quarter of 2011. The performance was driven by increased profits in the Food & Beverage and Community Development and Land Management segments, and by strong earnings in the Specialty Chemicals segment, while profits declined in the Home, Health and Beauty segment. Income from continuing operations was $17 million or $0.10 per share in the fourth quarter of 2012 compared to a loss of $7 million or $0.04 per share in the fourth quarter of 2011. Excluding special items, income from continuing operations in the fourth quarter of 2012 was $13 million or $0.07 per share versus $5 million or $0.03 per share in the fourth quarter of 2011.
United Parcel Service, Inc. today announced the withdrawal of its Offer for TNT Express (NYSE Euronext: TNTE).
As anticipated, the European Commission (EC) has issued a formal decision prohibiting the proposed acquisition of TNT Express. As a result of the prohibition by the EC, the Offer Condition relating to EU Competition Clearance will not be fulfilled and the acquisition of TNT Express by UPS will not be completed. Given this outcome, UPS and TNT Express entered a separate agreement to terminate the Merger Protocol.
UPS proposed significant and tangible remedies designed to address the EC's concerns with the transaction concerning the competitive landscape in Europe. UPS believes that the combined company would have been transformative for the logistics industry, bringing meaningful benefits to consumers and customers around the world, while supporting much needed growth in Europe in particular.
While UPS is disappointed in the EC's decision, the company's focus is on the continued execution of its growth strategy.
Silgan Holdings Inc., a leading supplier of rigid packaging for shelf-stable food and other consumer goods products, today reported full year 2012 net income of $151.3 million, or $2.17 per diluted share, as compared to full year 2011 net income of $193.2 million, or $2.75 per diluted share. Adjusted net income per diluted share was $2.70 for the full year 2012, after adjustments increasing net income per diluted share by $0.53. Adjusted net income per diluted share was $2.63 for the full year 2011, after a net adjustment reducing net income per diluted share by $0.12. A reconciliation of net income per diluted share to “adjusted net income per diluted share,” a Non-GAAP financial measure used by the Company, which adjusts net income per diluted share for certain items, can be found in Tables A and B at the back of this press release.
The Company delivered net cash provided by operating activities of $351.7 million in 2012 and free cash flow of $303.7 million in 2012 as compared to free cash flow of $152.9 million in 2011. Free cash flow in 2012 benefited from a reduction in inventory of $56.8 million, other working capital improvements and a planned decrease in capital expenditures. The Company is providing a reconciliation in Table C of this press release of net cash provided by operating activities to “free cash flow,” a Non-GAAP financial measure, which adjusts net cash provided by operating activities for capital expenditures, voluntary contributions to domestic pension benefit plans and changes in outstanding checks.
Today, Sappi Fine Paper North America announced its call for entries for the 2013 North American Printers of the Year awards, a competition that recognizes print excellence and innovation across 10 categories for work produced on Sappi papers. Since 1999, the Sappi Printers of the Year Awards program has been regarded as the world's most respected accolade of excellence in the printing industry.
In addition to industry-wide recognition, award-winning printers may receive up to $20,000 in design support and 5,000 lbs of paper towards marketing and brand initiatives. Selected printers will also gain increased visibility with current and potential clients by being featured on their own page in Sappi's Printers of the Year Online Resource, a unique database tool for designers, print buyers and corporations.
"In today's marketplace, even with the growth of digital and social media, we see print as a more vital medium to the marketing mix than ever before," said Patti Groh , Director of Marketing Communications, Sappi Fine Paper North America. "With each Printers of the Year competition, Sappi recognizes entrants that have raised the bar with their strategic and creative uses of print, and we strive to promote and support those who understand the impact that high-quality print has as a communications tool."
Fueled by escalating paper and cardboard demand, China's recovered paper production has seen rapid growth in recent years. Consumption jumped from 7.6 million tons in 1994 to 71 million tons in 2011, China Paper Association figures show.
Asian countries, especially fiber-short countries like China and India, will remain heavily dependent on recovered paper and account for a large share of the demand growth in the future, predicts Hannah Zhao, a Resource Information Systems Inc. economist on recovered paper.
In 2011, China used 56.6 million tons of recycled fiber-based pulp, accounting for 62 percent of the total pulp consumption in China. About 38 percent of the recovered paper was recycled domestically.
Niu Qingming, vice-president of China Paper Association, believes China should regard the recovered paper sector as part of its efforts to build a resource-conserving, environment-friendly society, and carry out more favorable policies to support it.
"Recycled paper has been vital in sustaining our paper industry and society," Niu says.
Recovered paper has become the main raw material of China's paper-making industry. In 2010, two thirds of the top 30 paper enterprises in China utilized recovered paper to produce paper, according to Niu.
A report released Tuesday by The Conference Board showed that confidence among U.S. consumers fell in January to its lowest point since November 2011.
The Conference Board’s index decreased to 58.6, down from a revised 66.7 in December. The figure was lower than forecast; Bloomberg predicted a median of 64.
The drop in confidence coincides with the 2% payroll tax increase used to fund Social Security.
“The thing that’s particularly troubling is the sizable decline in expectations,” Guy Lebas, chief fixed-income strategist at Janney Montgomery Scott LLC told Bloomberg. “As those expectations deteriorate, it doesn’t bode particularly well for day-to-day consumer spending.”
The 8.1-point slump from December to January is the biggest since August 2011, and parallels other measures of consumer confidence. The Bloomberg Consumer Comfort Index dropped in the week ended Jan. 20 to the lowest level since early October and the Thomson Reuters/University of Michigan preliminary index of consumer sentiment dropped in January to its lowest point since December 2011.
With turnover totalling 1.5 billion euros, the Portucel group recorded in 2012 its highest ever figures for output and paper sales, consolidating its position as Europe's leading manufacturer of uncoated woodfree (UWF) printing and writing paper. The Group's growing turnover has been achieved thanks to strong performance in paper operations, and also to positive returns from the energy sector.
Operating results stood at € 286.2 million, up by 7.5% on 2011, having been favourably influenced by the reversal of provisions of approximately € 15 million, as well as by a reduction in the value of depreciation over the period, due to the normal life cycle of industrial assets.
The Group recorded a financial loss of € 16.3 million, in line with that recorded in 2011. This was due essentially to a significant reduction in deposit interest rates over the year, which to a certain extent countered the effect of the reduction in the Group's net debt, and to the negative result from currency hedges.
As a result, the Group closed the financial year of 2012 with a consolidated net profit of € 211.2 million, representing an improvement of 7.6% in relation to the previous year.
Oil in New York rose to a four-month high after home prices in 20 U.S. cities climbed by the most in more than six years, signaling that the country’s economic rebound is accelerating.
Futures advanced 1.2 percent after the S&P/Case-Shiller index of property values increased 5.5 percent in November from the same month in 2011, the biggest year-over-year gain since August 2006. Prices also increased as Egypt’s defense chief warned that political unrest could bring about the “collapse” of the state.
“We’re pricing in a lot of economic optimism,” said Mike Wittner, head of oil-market research for the Americas at Societe Generale SA in New York. “The underlying macroeconomic picture looks solid and that’s good for demand.”
Crude oil for March delivery rose $1.13 to $97.57 a barrel on the New York Mercantile Exchange, the highest settlement since Sept. 14.
Amazon.com, Inc. today announced financial results for its fourth quarter ended December 31, 2012.
Operating cash flow increased 7% to $4.18 billion for the trailing twelve months, compared with $3.90 billion for the trailing twelve months ended December 31, 2011. Free cash flow decreased 81% to $395 million for the trailing twelve months, compared with $2.09 billion for the trailing twelve months ended December 31, 2011. Free cash flow for the trailing twelve months ended December 31, 2012 includes fourth quarter cash outflows for purchases of corporate office space and property in Seattle, Washington, of $1.4 billion.
Net sales increased 22% to $21.27 billion in the fourth quarter, compared with $17.43 billion in fourth quarter 2011. Excluding the $178 million unfavorable impact from year-over-year changes in foreign exchange rates throughout the quarter, net sales grew 23% compared with fourth quarter 2011.
Operating income increased 56% to $405 million in the fourth quarter, compared with $260 million in fourth quarter 2011. The favorable impact from year-over-year changes in foreign exchange rates throughout the quarter on operating income was $2 million.
Net income decreased 45% to $97 million in the fourth quarter, or $0.21 per diluted share, compared with $177 million, or $0.38 per diluted share, in fourth quarter 2011.
Buckeye Technologies Inc. today announced second quarter net sales of $204.3 million and adjusted net income* of $23.6 million. Adjusted EPS* of $0.60 compared to $0.69 in 2Q-FY12 and $0.62 in 1Q-FY13. Net insurance recovery in 2Q-FY13 was $0.04 per share less than expected.
Net sales for the quarter were down $17.1 million or 8% compared to the year ago quarter. While shipment volume was up 6% year over year, product mix was unfavorable as we shipped about 12,000 tons into the viscose staple fiber market during the quarter as a result of weak demand in some of our high-end markets, particularly from the European tire cord market. The sale of the Merfin Systems converting business in the third quarter of fiscal 2012 accounted for $4.3 million of this reduction in net sales.
Adjusted operating income* of $36.4 million was down $6.7 million compared to the year ago quarter, largely due to unfavorable product mix, in spite of a $6.8 million net insurance benefit related to the June steam drum failure outage at Foley.
R. R. Donnelley & Sons Company today announced that it has further expanded its international platform's safety and environmental certifications as its facility in Douai, France has achieved ISO 14001 certification as defined by the International Standards Organization (ISO) and OHSAS 18001 certification as set by the Occupational Health & Safety Advisory Services (OHSAS) organization.
The ISO 14001 framework establishes the criteria for an environmental management system and provides assurance that an organization's environmental impact is being measured and improved. OHSAS 18001 is the latest certification specification and demonstrates a commitment to implement, maintain and continually improve the management of a health and safety system. These certifications complement Douai's ISO 9001, Forest Stewardship Council (FSC), Sustainable Forestry Initiative (SFI) and Programme for the Endorsement of Forest Certification certifications.
"This achievement reflects our continuing commitment to best practices in both safety and environmental systems," said Dan Knotts, RR Donnelley's Chief Operating Officer. "We regard safety as the first measure of operational excellence and work to embrace processes that contribute to sustainability."