Business-to-business media revenue shows a continued migration to digital advertising, according to ABM’s 2012 third-quarter BIN Report. Compared to the corresponding quarter in 2011, print ad revenue dipped by $121 million, but over the same periods, online ad sales more than made up the loss, rising $161 million. With event revenue basically flat for the quarter, the entire industry seems to be holding steady compared to last year.
The b-to-b digital ad revenue figures, estimated by ABM from IAB’s Advertising Revenue Report, saw mobile ad revenue rise 41 percent, with email advertising rising 26 percent and rich media increasing 25 percent. The contributions made by online classifieds, directories and sponsorships dipped approximately 2 percent. Overall, digital ad revenue rose to $1,011 million, up 16 percent ($161 million) compared to the third quarter of 2011. This is the first time that quarterly digital ad revenue has topped $1 billion for the b-to-b media industry.
Event revenue for the third quarter totaled $2,767 million, down 0.2 percent compared with the third quarter of 2011. Event revenue, provided by CEIR, remains the largest component of the b-to-b pie, eclipsing print, digital and data sources.
Print ad revenue declined 7 percent to $1,795 million in the third quarter, compared to the corresponding quarter of 2011, as reported by IMS. Some vertical segments are seeing advancing revenue this year, however, including both the agriculture and travel categories, which have seen cumulative print ad growth over 10 percent during the first nine months of 2012.
Chakravarthi, chief executive officer and managing director, Ecobliss India, says, packaging is growing. And in emerging markets like India the growth is double or more than the national GDP.
Today, packaging aims to perform in all three dimensions of sustainability: people (social), profit (economy) and planet (environment).
The primary objective of packaging is protecting the product. Apart from this basic function, a good package should be cost-efficient, provide value to generate revenue, should be user-friendly in terms of handling, enlightening the user about the product. Paper and paperboard-based packaging fulfills all this checklist. And can form a good package.
Product packaging is considered as the silent salesman. An innovative package has an ability to attract the attention of a customer and boost product sales. This is complemented by the packaging material which provides a tactile experience to the customer.
Paperboard packaging provides opportunities for new designs, shapes, surfaces and finishes and at the same time it offers brand owners the flexibility to design packaging that will entice consumers to select the product.
Creation of wealth is a top priority in any industry. Besides adding value to a product and preserving the quality, packaging serves the need to create and preserve the wealth created by other industries.
Products such as water, milk, biscuits, medicines, processed and semi-processed foods, fruits and vegetables, edible oils, electronic goods, machinery etc demand packaging to increase their shelf-life and ensure usability till they reach the end-user.
With the “on-the-move” lifestyle which is being adapted, the key in packaging is to promote the demand for freshly packaged goods.
Starting with its January/February 2013 issue, Cooking Light will leverage the Digimarc Discover platform to digitally watermark every recipe included in the magazine so that it is scannable. Using the free Digimarc Discover app consumers can use their smartphones to scan recipe photos to be automatically connected to the recipe page on sister-site, MyRecipes.com. Once there, they can save it to their recipe file, share favorites with friends, organize menus, and make grocery shopping lists.
Cooking Light will promote the new feature on the cover of the January/February issue and use a red icon throughout the issue with simple instructions to let consumers know the recipe images on that page are interactive.
The January/February 2013 issue of Cooking Light is available on newsstands December 28, 2012, and the Digimarc Discover App is available from the iTunes App Store and Google Play.
Chicago-area newspaper publishers are retrenching as the year draws to a close, with major cost-cutting initiatives from Sun-Times Media and the Tribune Co. Most recently, Sun-Times Media announced that it will close six of its suburban newsrooms with an eye to consolidating all editorial and production activities in the company’s main Sun-Times building in downtown Chicago.
Sun-Times Media will close suburban newsrooms in Aurora, Glenview, Gurnee, Joliet, Tinely Park and Merrillville, Indiana, and relocate about 70 employees, including editors and production personnel, to the Sun-Times headquarters building.
Suburban reporters will work from the field or from home via laptops and mobile devices. Some workers involved in production may be laid off. In addition to saving money on rent and streamlining production, Sun-Times execs said the moves are part of a push to transition to a “digital first” company.
As noted, Sun-Times isn’t the only Chicago publisher cutting back.
Earlier this week, the Tribune Co. revealed that its flagship newspaper, The Chicago Tribune, will be dropping its contract with the Associated Press in early January, along with a number of other Tribune papers, including The Baltimore Sun, Orlando Sentinel, South Florida Sun-Sentinel,Hartford Courant, Morning Call of Allentown, PA, and the Daily Press of Newport News, VA. The Los Angeles Times is the only Tribune paper that will continue its membership in the AP.
Brent crude traded near the highest level in one month as U.S. lawmakers prepared to resume budget talks and the United Arab Emirates said it arrested members of a terror cell that was planning attacks on oil-exporting nations.
Futures were little changed in London after rising the most in five weeks yesterday. President Barack Obama and legislators returned to Washington for talks aimed at averting more than $600 billion in tax gains and spending cuts that start Jan. 1. The U.A.E. coordinated with Saudi Arabian officials to arrest members of the terror group who had equipment needed for their attacks, according to the official WAM news agency.
“The arrests in the U.A.E. appear to have had a big impact with lower liquidity in the oil market,” said Michael Poulsen, an analyst at Global Risk Management in Middelfart, Denmark, who predicts Brent will average $112 a barrel in the first quarter. “Fundamentals look pretty balanced.”
Brent for February settlement fell 31 cents to $110.76 a barrel on the London-based ICE Futures Europe exchange at 11:15 a.m. local time. The volume was 37 percent less than the 100-day average.
As if Superstorm Sandy and the looming fiscal crisis weren't enough, a potential strike by thousands of dock workers from Boston to Houston threatens to shock the economy as early as this weekend.
Business groups and state officials in recent days have called on President Obama to intervene, and use emergency powers to "avoid a coast wide port shutdown." They warn it could cost billions, citing estimates that a 10-day port lockout in 2002 cost $1 billion a day -- and caused a major backlog in shipments.
Florida Gov. Rick Scott is the latest to enter the fray and call for White House intervention. But a port strike would affect more than the East and Gulf coasts, where all these ports are located. It could choke supply chains across the country. Groups ranging from the automobile industry to the National Retail Federation to the U.S. Chamber of Commerce to the Cheese Importers Association of America are warning of dire consequences.
"Failure to reach an agreement resulting in a coast wide shutdown will have serious economy-wide impacts," those and dozens of other groups wrote to Obama last week. They said "just the threat of a shutdown" has forced many businesses to enact costly "contingency plans."
At issue is a labor dispute between the International Longshoremen's Association, which represents dock workers, and the U.S. Maritime Alliance, which represents port operators and shipping companies.
Buried within Wal-Mart’s Web site, beneath the red sales banners and loud holiday graphics, is a magazine called BeautyScoop. Thousands of stores also carry it, and it was mailed to millions of the store’s customers.
Most big retailers fill their stores with custom-published shoppers that double as cheaply made catalogues, highlighting product in stock and coupon dispensers.
BeautyScoop is something else. It has a model on the cover, for one. Its own logo — the name in a large type underneath a smaller Wal-Mart tag. Though wafer-thin — it runs just 12 pages — and produced on glossy stock, it is as close as a store catalogue can come to a magazine. And there are editorial features.
“We’ve got loads of helpful tips and how-to’s,” the copy reads. “At Wal-Mart’s Every Day Low Prices — along with expert advice from the editors of Allure, Glamour and Lucky.”
Glamour, for instance, answered questions from its Twitter followers about “pretty girl problems,” like thinning eyebrows.
News Corporation today filed an initial Form 10 Registration Statement with the U.S. Securities and Exchange Commission (SEC). The filing is in connection with the Company’s previously-announced intention to separate its businesses into two independent, publicly-traded companies.
Today’s Form 10 filing initiates a process of providing details about the new News Corporation and the manner in which the separation will occur. The new News Corporation will comprise a range of market-leading brands in newspapers, information services and integrated marketing services, digital real estate services, book publishing, digital education, as well as sports programming and pay-TV distribution in Australia.
Oil was little changed in New York amid concern that U.S. lawmakers will miss a year-end budget deadline, threatening to weaken the American economy.
Futures traded in a 66-cent-a-barrel range as Democrats and Republicans discussed how to avoid more than $600 billion in tax gains and spending cuts, known as the fiscal cliff, which are scheduled to take effect Jan. 1. Failure to reach agreement would push the U.S. into recession for the first half of 2013, the nonpartisan Congressional Budget Office said.
“It looks like there may be a series of small deals,” said Bill O’Grady, chief market strategist at Confluence Investment Management in St. Louis, which oversees $1.4 billion. “It may end up being more of a fiscal slope than a cliff.”
Crude oil for February delivery slipped 5 cents to settle at $88.61 a barrel on the New York Mercantile Exchange. The volume for all West Texas Intermediate oil futures traded was down 81 percent from the 100-day average.
Kantar Media, a unit of WPP's consultancy group Kantar, announced it has acquired AdGooroo, a provider of global digital media intelligence. Financial terms of the deal were not disclosed.
The acquisition will enhance Kantar's digital media measurement and analysis capabilities, particularly its insight into display, video, ad networks and paid-search advertising trends, the company said.
AdGooroo has 4,000 marketer and agency clients worldwide. The company provides data on competitors' keywords, ad creative, backlink data, campaign statistics and budgets.
“We are committed to measuring all media, and digital media is obviously an important component to that,” said Terry Kent, CEO of Kantar Media North America, in a statement. “Paid search, in particular, is a complex, fragmented medium with many different inputs,” he said, calling AdGooroo's methodology “the best in the market for measuring paid search.”
American Forest & Paper Association President and CEO Donna Harman issued the following statement today regarding the Environmental Protection Agency’s (EPA) release of its final Boiler Maximum Achievable Control Technology (MACT), Incinerator, and Non-Hazardous Secondary Materials (NHSM) rules.
“While we need to study the rule in more depth, we will be looking for improvements from the December 2011 re-proposed rules on the use of biomass residuals as fuels, compliance time, and overall achievability. However, several billions of dollars in capital spending will be necessary to comply. This is a significant investment for an industry still recovering from the economic downturn, especially in light of the growing cumulative regulatory burden we face.
“We appreciate the amount of time and energy that the EPA, many members of Congress, governors, and other stakeholders have taken to fully understand our concerns related to this final rulemaking. Throughout this process, we maintained an open and healthy dialogue with EPA and provided extensive data and comments in the hope that rules would be developed that are achievable and affordable for our industry.”
Due to rising input costs and inflation, Twin Rivers Paper Company would like to inform you that effective with shipments on or after January 21, 2013, we will implement a price increase for Label, Packaging and Specialty grades. Pricing for the following grades will increase by $40.00/ton or $2.00/cwt:
Bladepak®; Alliance®; Acadia®; All other Specialties
Twin Rivers Paper Company values your business and appreciates your ongoing support.
NewPage Corporation announced today that it has successfully completed its financial restructuring and has officially emerged from Chapter 11 bankruptcy protection pursuant to its Modified Fourth Amended Chapter 11 Plan (the "Plan"), confirmed on December 14, 2012, by the U.S. Bankruptcy Court for the District of Delaware in Wilmington.
In conjunction with the Plan, NewPage closed on its exit financing, consisting of a $500 million term loan facility led by Goldman Sachs Lending Partners LLC and a $350 million revolving credit facility led by J.P. Morgan Securities LLC.
"This is an exciting day for all of us at NewPage," said George F. Martin, president and chief executive officer. "We have successfully completed our restructuring, and we have emerged as a financially sound company. This step helps to solidify our position as the leading North American producer of printing and specialty papers. We look forward to continuing to provide our customers with exceptional service and high-quality products, operating safe and efficient mills and being a responsible community member."
Mr. Martin continued, "I would like to thank our customers and suppliers for their support during this process. I would also like to extend my gratitude to our employees for their hard work and tireless dedication throughout the reorganization and the challenging period leading up to it."
Walgreen Co. today announced earnings and sales results for the first quarter of fiscal year 2013 ended Nov. 30.
Net earnings determined in accordance with generally accepted accounting principles (GAAP) for the fiscal 2013 first quarter were $413 million or 43 cents per diluted share, compared with $554 million or 63 cents per diluted share in the year-ago quarter.
Adjusted fiscal 2013 first quarter net earnings were $553 million or 58 cents per diluted share, compared with adjusted net earnings of $619 million or 71 cents per diluted share in the year-ago quarter. This year’s adjusted first quarter results exclude the negative impacts of 6 cents per diluted share in acquisition-related amortization costs, 4 cents per diluted share from the quarter’s LIFO provision, 3 cents per diluted share in costs related to Hurricane Sandy, and 2 cents per diluted share related to the company’s acquisition of USA Drug and related store closures.
First quarter sales decreased 4.6 percent from the prior-year quarter to $17.3 billion. Brand-to-generic prescription drug conversions negatively impacted sales by $883 million or 4.9 percentage points in the first quarter.
Front-end comparable store sales (those open at least a year) decreased 2.0 percent in the first quarter compared to the prior-year quarter, customer traffic in comparable stores decreased 4.2 percent and basket size increased 2.2 percent.
Voith said that it will supply Modern Karton with a new paper machine for Modern Karton's paper mill in Corlu, Turkey.
The new PM 5 will produce light-weight packaging paper.
The scope of supply includes the entire process line.
According to Voith, PM 5 will be a particularly sustainable machine, especially as it consumes little fresh water. Using the technology supplied by Voith ensures that consumption of resources is kept as low as possible. For example, due to installation of the innovative FlowJec dosing system in the approach flow system of the PM 5, it is possible to exactly coordinate the use of chemicals.
In addition, the OnV EnergyProfiler software localizes and visualizes all the energy consumption in the paper production.
Modern Karton itself will set up a power plant on the mill site to utilize the residual materials from the manufacturing process and generate energy.
PM 5 will have a speed of 1,500 m/min and wire width of 8,180 mm. The new machine will produce around 400,000 metric tons of packaging paper with a basis weight of 70 to 160 g/m².
‘Tis the season for revamping magazines, with a number of publications unveiling new looks both in print and online. This week brought redesign announcements from Prevention and Atlantic Media, which are both giving themselves a makeover.
Prevention is getting a new design and editorial focus, according to Adweek, which first reported the news. Led by Senior Vice President and Editorial Director Anne Alexander and publisher Lori Burgess, the redesign aims to makePrevention more relevant and appealing to its target audience of women in their 40s-60s. As part of the transformation, Adweek writes, the magazine is moving away from portraying readers as “Doctor Mom” and adopting a tone that is more “encouraging, uplifting, almost indulgent,” according to Alexander.
The redesign also includes better photography, fewer celebrities on the cover, and a price bump, from $3.59 to $3.99.
Meanwhile, Atlantic Media has unveiled a new Web site for its corporate brand, with the goal of better highlighting its digital properties, including Quartz and The Atlantic Wire, as well as the digital presence of The Atlantic magazine and National Journal. The company’s brands are showcased with a selection of stories presented in picture-tile format. Also included in the makeover is a new logo that reworks the “compass” in an eye-catching way.
Bold and boastful hipster-targeted media conglomerate Vice is getting into fashion.
While the magazine has been on the edge of culture--including fashion--since inception, it's never been a fashion brand. The acquisition of British style title i-D brings them into that realm.
Terms of the deal were not disclosed.
"Vice is so excited to work with the guys at i-D magazine, one of the only fashion publications in the world we actually respect," says Andrew Creighton, president of Vice, in a release. "We know digital, i-D knows style, and together we're going to give the world the gift of eye-catching, mind-blowing, video-driven fashion content."
i-D founder Terry Jones and his wife, Tricia, will remain with the magazine as minority partners. Current staff will "join forces with Vice's operations and continue to generate content for i-D."
Total European shipments of graphic papers were down 3.6% vs. November 2011 and are down 3.9% year-to-date.
Total European shipments of newsprint were down 5.3% vs. November 2011 and are down 3.3% year-to-date.
Total European shipments of sc-magazine were down 0.2% vs. November 2011 and are down 4.5% year-to-date.
Total European shipments of coated mechanical reels were down 8.8% vs. November 2011 and are down 6.9% year-to-date.
Total European shipments of uncoated mechanical reels were up 4.7% vs. November 2011 and are down 2.8% year-to-date.
Total European shipments of coated woodfree reels were down 1.3% vs. November 2011 and are down 2.5% year-to-date.
Total European shipments of uncoated woodfree reels were down 2.0% vs. November 2011 and are down 2.9% year-to-date.
National Unleaded Regular:
Current Average - $3.232/gallon
Month Ago Average - $3.426/gallon
Year Ago Average - $3.206/gallon
Highest Recorded Average - $4.114/gallon on 7/17/08
Current Average - $3.920/gallon
Month Ago Average - $4.003/gallon
Year Ago Average - $3.843/gallon
Highest Recorded Average - $4.845/gallon on 7/17/08
Current Exchange Rates as of 12/21/12
American Dollar to Canadian Dollar = 1.009311
American Dollar to Chinese Yuan = 0.160478
American Dollar to Euro = 1.321498
American Dollar to Japanese Yen = 0.011888
American Dollar to Mexican Peso = 0.077868
Oil declined the most in more than two weeks because of concern that U.S. lawmakers may fail to avert spending cuts and tax increases that threaten the economy of the world’s biggest crude consumer.
West Texas Intermediate dropped as much as 1.6 percent, paring a second weekly gain, after House Speaker John Boehner scrapped a plan to allow higher tax rates on annual income above $1 million, throwing talks on budget issues known as the fiscal cliff into turmoil. Oil rose a fifth day yesterday, the longest rally since September, after government data showed the U.S. economy grew at a 3.1 percent annual rate in the third quarter, higher than a previous estimate of 2.7 percent.
“We are seeing a negative reaction to Republicans rejecting the latest proposal on tax hikes,” Andrey Kryuchenkov, a commodities analyst at VTB Capital in London, said in an e-mail. “It could have a U.S. demand impact.”
WTI for February delivery fell as much as $1.45 to $88.68 a barrel in electronic trading on the New York Mercantile Exchange, the biggest drop since Dec. 6, and was at $88.98 at 11:25 a.m. London time. Prices are up 2.6 percent this week.
U.S. mobile ad spending is growing faster than previously expected, spurred by the success of so-called “native” ad formats like Facebook's mobile news feed ads and Twitter's Promoted Products, according to a report by eMarketer.
EMarketer forecasts that overall spending on mobile advertising in the U.S., including display, search and message-based ads, will reach beyond $4.0 billion by year's end, up 180.0% over 2011. In September, the consultancy had projected slower growth of 80.0%, to $2.6 billion. Google Inc. is set to control a 56.6% share of the U.S. mobile advertising market by year's end, ahead of Facebook Inc., Pandora Media and Twitter, in that order.
The company also projected that U.S. mobile ad spending will reach $7.2 billion in 2013 and nearly $21.0 billion by 2016, a forecast that eMarketer said was "a significant upward revision."
The American Forest & Paper Association released its November 2012 Kraft Paper Report on Dec. 18.
Total Kraft paper shipments were 120.4 thousand tons, a decrease of 11.2 percent compared to the prior month. Bleached Kraft paper shipments increased year-over-year 21.2 percent. Unbleached Kraft paper declined 15.7 percent year-over-year. Total month-end inventory increased 4.3 percent to 76.0 thousand tons this month compared to October 2012 month-end inventories.
The American Forest & Paper Association has released its November 2012 Printing-Writing Paper Report.
According to the report, total printing-writing paper shipments decreased 4 percent in November compared to November 2011. Three out of the four major printing-writing grades posted decreases compared to last November, with coated free sheet posting the only year-over-year increase.
Additional key findings:
·November shipments of coated free sheet (CFS) papers increased year-over-year for the sixth time in the past 12 months. CFS shipments increased 1 percent when compared to November 2011 to 330,800 tons, the fourth highest total in 2012.
·While uncoated free sheet (UFS) papers shipments decreased 2 percent compared to November 2011 to 705,500 tons, October exports increased year-over-year for the third consecutive month. Year-to-date shipments of UFS paper are down 3 percent compared to the same months in 2011. Exports of UFS increased year-over-year in October, up 15 percent. Year-to-date UFS exports are up 11 percent in 2012 compared to same 10 months in 2011.
·November uncoated mechanical (UM) paper shipments decreased 24 percent when compared to November 2011, the twentieth consecutive month of year-over-year decline.
·November shipments of coated mechanical (CM) papers decreased 5 percent compared to November 2011. Year-to-date shipments of CM are down 5 percent compared to the same 11 months in 2011.
A record achievement was announced by EFI™ today — that the company has sold more than one million liters of UV-curable ink during the first eleven months of 2012. This reflects the continuing increase in popularity for the company's wide-format and narrow web portfolios, with diversity in creativity, application opportunities and material capabilities resulting in more output being generated using the company's inkjet technologies.
"Our company-record sales of one million liters of UV-curable ink in an eleven-month period confirms EFI's position as a leader in the inkjet arena with reliable, cost-effective and more environmentally-friendly inks for the digital marketplace," explains Scott Schinlever, senior vice president and general manager of inkjet solutions at EFI. "Reaching this milestone is yet another indication that EFI is producing high quality ink formulations, combined with wide format printing system technologies that meet the demand for greater profitability through producing shorter runs with superior print quality at production speeds. We've experienced 12 consecutive quarters of over 20% year-over-year UV ink volume growth, which indicates that customers utilizing our technology are experiencing business growth."
Södra and Mayr Melnhof Karton have signed a Letter of Intent where Mayr Melnhof Karton intends to purchase 100% of the shares in Södra Cell Folla AS and thereby take over Södra's pulp mill in Follafoss.
Mayr Melnhof Karton intends to resume operations at Folla as soon as possible, hopefully early in 2013. The parties' intention is to close the deal during the first quarter of next year.Södra's pulp mill in Follafoss, Norway, has a capacity of 105,000 tpy of CTMP pulp. Södra announced its intention to divest the mill earlier this year. Mayr Melnhof, based in Vienna, is a world leader in the field of coated, recycled cartonboard and Europe's leading manufacturer of folding cartons. The group's business is focused on MM-Karton and MM-Packaging.
Discover Financial Services today reported net income of $551 million or $1.07 per diluted share for the fourth quarter of 2012, as compared to $513 million or $0.95 per share for the fourth quarter of 2011. The company’s return on equity was 23%.
Fourth Quarter Highlights
Total loans, credit card loans and Discover card sales volume all grew 6% from the prior year.
Credit card net charge-offs reached historic lows with a net charge-off rate of 2.29%. Credit card loan delinquencies over 30 days past due increased 5 basis points sequentially to 1.86%.
Payment Services pretax income was down 21% from the prior year to $33 million. Transaction volume for the segment was $49.0 billion in the quarter, an increase of 13% from the prior year.
Tetra Pak has acquired Minneapolis-based Filtration Engineering Company, Inc., the US market leader in membrane filtration technology for the dairy and cheese industries.
Filtration Engineering, a privately-held company established in 1982, specializes in the design, construction and commissioning of membrane filtration systems used in the areas of milk, whey and specialised waste treatment systems. The company employs 39 people.
The acquisition, for an undisclosed sum, combines Filtration Engineering’s expertise in spiral membrane technology with Tetra Pak’s existing ceramic membrane systems portfolio, expanding Tetra Pak’s broad-based portfolio of system and application knowledge for dairy, cheese and whey processing applications.
“The acquisition of Filtration Engineering strengthens our portfolio of products, solutions and services for dairy and cheese applications as well as provides us with additional knowledge and competence,” said Tim High, Executive Vice President Processing Systems, Tetra Pak.
Rite Aid Corporation today reported improved financial results for its fiscal third quarter ended Dec. 1, 2012. The company reported revenues of $6.2 billion, net income of $61.9 million, or $0.07 per diluted share, and Adjusted EBITDA of $295.3 million, or 4.7 percent of revenues.
Revenues for the 13-week quarter were $6.2 billion versus revenues of $6.3 billion in the prior year third quarter. Revenues decreased 1.2 percent primarily due to the impact of the introduction of lower cost generics on pharmacy same store sales as well as store closings.
Same store sales for the quarter decreased 1.5 percent over the prior year 13-week period, consisting of a 1.1 percent increase in front end sales offset by a 2.7 percent decrease in pharmacy sales. Pharmacy sales included an approximate 924 basis point negative impact from new generic introductions. The number of prescriptions filled in same stores increased 3.6 percent over the prior year period, which includes the benefit of additional prescriptions resulting from the Walgreens/Express Scripts dispute. Prescription sales accounted for 67.8 percent of total drugstore sales, and third party prescription revenue was 96.5 percent of pharmacy sales.
Net income was $61.9 million or $0.07 per diluted share compared to last year’s third quarter net loss of $52.0 million or $0.06 per diluted share. The improvement in net income resulted primarily from an increase in Adjusted EBITDA as well as a lower LIFO charge.
American Greetings Corporation today announced its results for the third fiscal quarter ended November 23, 2012.
For the third quarter of fiscal 2013, the Company reported total revenue of $506.8 million, a pre-tax loss of $2.1 million, and a net loss of $0.8 million or 3 cents per share (all per-share amounts assume dilution).
The Company announced, on June 7, 2012, the acquisition of certain assets of United Kingdom-based Clinton Cards, including approximately 400 stores and related overhead as well as the Clinton Cards and related brands. As a result of the acquisition, the Company recognized during the third quarter of fiscal 2013 a revenue increase of approximately $67.6 million from the operations of the Clintons retail stores, reflected in the Company's new Retail Operations segment. This revenue increase was partially offset by the revenue reduction of approximately $25.5 million from inter-segment sales eliminations, reflected in the Company's International Social Expressions segment, resulting in a net increase in consolidated revenue of approximately $42.1 million in the quarter. The revenue being eliminated would have been third party sales in the prior year quarter.
The Company recognized a loss of $11.5 million (after-tax of approximately $7.0 million or 22 cents per share) from the operation of its Retail Operations segment. The Company also recognized a reduction in pre-tax income of approximately $4.1 million (after-tax of approximately $2.5 million or 8 cents per share) as a result of inter-segment items within the International Social Expressions segment. The total consolidated net reduction in pre-tax income associated with the operation of the Clintons retail stores during the third fiscal quarter was approximately $15.6 million (after-tax of approximately $9.5 million or 30 cents per share).
FedEx Corp. today reported earnings of $1.39 per diluted share for the second quarter ended November 30, compared to $1.57 per share last year. Superstorm Sandy impacted the quarter’s results by $0.11 per diluted share due to reduced shipment volumes and incremental operating costs.
“Operating income for the quarter improved at FedEx Freight and FedEx Ground due to increased volumes and higher yields, while persistent weakness in the global economy and increased demand for lower-yielding international services limited profits at FedEx Express,” said Frederick W. Smith, FedEx Corp. chairman, president and chief executive officer. “Earnings also were negatively impacted by disruptions caused by Superstorm Sandy. We are hard at work on another record-setting holiday shipping season, driven by the continued growth of e-commerce. I would like to thank all of our team members for their hard work and dedication during our peak season.”
FedEx Corp. reported the following consolidated results for the second quarter:
• Revenue of $11.1 billion, up 5% from $10.6 billion the previous year
• Operating income of $718 million, down 8% from $780 million last year
• Operating margin of 6.5%, down from 7.4% the previous year
• Net income of $438 million, down 12% from last year’s $497 million
The results of the quarter also reflect, primarily at FedEx Express, the net year-over-year negative impact from the timing lag that exists between when fuel prices change and indexed fuel surcharges automatically adjust.
Catalyst Paper today announced that the sale of its Elk Falls site in Campbell River to Pacifica Deep Sea Terminals Incorporated did not close and the sale agreement has been terminated. The sale of the 400-acre industrial site and adjacent properties was initially expected to close on September 5, 2012. A non-refundable prepayment of a portion of the purchase price was received and the transaction timeline was extended multiple times up to the ultimate deadline of December 18, 2012.
“It’s disappointing that this transaction with Pacifica could not be completed even with the extended timeline. This is a fully serviced property in an excellent location and we remain confident that the right fit between site and buyer will be found that will bring new jobs and opportunities to Campbell River,” said Kevin J. Clarke, Catalyst President and Chief Executive Officer. “In the meantime, site personnel are maintaining safety, security and environmental requirements and complying with all applicable legislation.”
The former pulp and paper site was indefinitely curtailed in 2009 and closed permanently in 2010. It has since been decommissioned with removal of chemicals, process wastes, and key papermaking equipment. The landfills remain intact as does the wastewater system which continues to operate in preparation for the site’s redevelopment to other industrial uses. The Elk Falls mill began operation in 1952, and at its peak, produced 784,000 tonnes of pulp, paper and kraft paper annually.
Brent crude fell from the highest close in two weeks amid speculation that U.S. budget negotiations faltered, threatening the economy of the world’s biggest oil user.
Futures slid as much as 0.6 percent, snapping two days of gains. Officials from President Barack Obama’s administration told leaders of business and financial services groups that talks with House Speaker John Boehner have deteriorated in the past 24 hours, a person familiar with the meeting said. U.S. crude inventories last week were 15 percent above the five-year average, a report from the Energy Department showed.
“The market is reasonably well-balanced,” Ole Hansen, senior manager of trading advisory at Saxo Bank A/S, said by phone from Copenhagen today. Brent will probably trade above its technical support level at $108.90 a barrel, he said.
The North Sea grade for February settlement slid as much as 63 cents, or 0.6 percent, to $109.73 a barrel on the London- based ICE Futures Europe exchange and was at $110.11 as of 11:15 a.m. local time.
The American Forest & Paper Association released its November 2012 U. S. Containerboard Statistics Report today. Containerboard production fell 1.5 percent over October 2012 but rose 1 percent over the same month last year. However, the month-over-month average daily production increased 1.7 percent. The containerboard operating rate for November 2012 gained 0.6 points over October 2012, from 96.3 percent to 96.9 percent.
The American Forest & Paper Association released its November 2012 U.S. Paperboard Report.
Total boxboard production increased by 2.1 percent compared to November 2011 and increased 1.7 percent from last month. Unbleached Kraft Boxboard production increased over the same month last year and increased compared to last month. Total Solid Bleached Boxboard & Liner production increased compared to November 2011 and increased compared to last month. The production of Recycled Boxboard increased compared to November 2011 but decreased when compared to last month.
The American Forest & Paper Association released its November 2012 U.S. Recovered Fiber Monthly Report on Dec. 19.
According to the report, total U.S. industry consumption of recovered paper in November was 2.36 million tons, 5 percent lower than in October 2012. Inventories increased for most grades. Year-to-date total consumption in 2012 is 4 percent lower than during the same period last year.
U.S. exports of recovered paper showed strong gains across all grades, except for High Grade Deinking. Corrugated exports increased to levels not seen since April 2011. Year-to-date exports of recovered paper in 2012 are 6 percent lower than during the same period in 2011.
Against the backdrop of the prevailing economic and currency situation, SCA is introducing a comprehensive program to enhance the efficiency of its forest products operation. The program will generate annual earnings improvements of SEK 1,300m with full effect from 2015.
The total cost of the program is SEK 370m, of which SEK 250m is cash flow impacting and SEK 120m comprises impairment losses. Of the total costs, SEK 175m will be charged to profit for the fourth quarter and will be recognized as items affecting comparability. The remaining SEK 195m will be charged to profit for the first six months of 2013.
Actions include the previously announced closures of the sawmills in Vilhelmina and Holmsund, and cutbacks at Ortviken paper mill, SCA Transforest’s terminals in Sundsvall and Umeå, and at SCA’s R&D Center. About 200 positions are affected, the majority of which have already been announced.
The program includes a structured plan to reduce fixed and variable costs, income improvements by way of increased production and streamlining activities, and a changed product and market mix. This will be achieved through improved raw material yield at the sawmills, higher productivity in harvesting activities, an increased share of value-added publication papers and a larger share of container transportation.
SCA is divesting its Austrian publication paper mill in Laakirchen to Heinzel Group. In conjunction with the divestment, SCA and Heinzel Group have concluded a sales cooperation agreement.
In 2011 Laakirchen reported totaled sales of EUR 335m and had just over 500 employees. The annual capacity amounts to more than 500,000 tons.
The initial purchase consideration is EUR 100m with a possible maximum additional purchase price of EUR 100m based on a two-year profit-sharing model. In conjunction with the transaction, an impairment of EUR 50m has been recognized, which will be charged to profit in the fourth quarter of 2012.
The transaction is expected to be finalized in the first quarter of 2013 following approval by the relevant authorities.
In a move that had been expected since the announcement of the Penguin-Random House merger, Penguin Group (USA) has reached a settlement with the Department of Justice in the government's e-book price fixing lawsuit. Terms are identical to agreements reached with Simon & Schuster, Hachette and HarperCollins, but according to the government, if the Random House-Penguin merger is approved the newly formed company must abide by the agreement.
“The department is currently reviewing the proposed joint venture announced by Penguin and Random House Inc., the largest U.S. book publisher. Should the proposed joint venture proceed to consummation, the terms of Penguin’s settlement will apply to it,” the DoJ said in its press release.
In a prepared statement, Penguin said it maintains that is has “done nothing wrong,” but that it is “in everyone's interests that the proposed Penguin Random House company should begin life with a clean sheet of paper.”
Under the proposed agreement, which still must be approved by the court after a 60-day comment period, Penguin will terminate its agreements with Apple and other e-books retailers and will be prohibited for two years from entering into new agreements that constrain retailers’ ability to offer discounts or other promotions to consumers. The proposed settlement agreement also will impose an antitrust compliance program on Penguin, which will include a requirement that it provide advance notification to the department of any e-book ventures it plans to undertake jointly with other publishers and that it regularly report to the department on any communications it has with other publishers. Also for five years, Penguin will be forbidden from agreeing to any kind of most favored nation agreement that could undermine the effectiveness of the settlement.
Today, Gap Inc. announced plans for the first stand-alone Gap stores in Brazil as part of the company’s continuing global expansion strategy. Gap Inc. signed an agreement with Tudo Bom Comércio Ltda. for the planned opening of the first stores in the fall of 2013.
Gap Inc. plans to expand its store base in the country over the next five years, part of its strong platform of growth in the Brazilian retail market.
“Brazil is a critical next step in our global expansion strategy and we are excited to introduce our store experience to customers,” said Stefan Laban, Managing Director of Strategic Alliances, Gap Inc. “Given that Brazil is the fifth largest country in the world and the largest Latin American economy, we feel that this market provides us with an incredible growth opportunity.”
Previously, Gap offered its products solely through duty-free channels throughout Brazil. The first Gap stores will open in Sao Paulo, the country’s largest city followed by Rio de Janerio. The stores will house Gap, GapKids and babyGap collections.
Fortress Paper Ltd. is pleased to announce the launch of the world's first banknote printed on the Company’s new Durasafe® substrate, an innovative paper-polymer-paper composite produced at its Landqart mill.
With the issuance of the new Moroccan 25 Dirhams scheduled for this month, Bank al Maghrib, Morocco's central bank, will become the first in the world to issue a banknote printed on Durasafe®.
The front of the banknote features an Intaglio vignette and a watermark of King Mohammed VI, and a magenta/green colourshift security thread developed by the Company’s wholly owned subsidiary, Fortress Optical Features Ltd. ("FOF"). The thread, like the watermark, is embedded inside the banknote yet visible behind a one-sided polymer window. It also has a fully transparent polymer window embossed with the King's royal crest. The back of the note carries a print vignette commemorating 25 years of banknote printing at the Moroccan State Printing Works, Dar As Sikkah.
If content is king, then content marketing is a king’s trade.
According to new research from the Content Marketing Institute and MarketingProfs, b-to-b marketers, on average, are spending 33 percent of their marketing budgets on content marketing—a 7 percent jump since 2011. About 54 percent say they plan on increasing content marketing spending next year.
While more and more b-to-b marketers are turning to content marketing, just 36 percent of respondents say they believe they are effective at content marketing. The data saw a total of 1,416 respondents from North American companies and represented a full rage of industries, functional areas and company sizes.
B-to-b marketers continue to rate in-person events as the most effective tactic they use, with 67 percent believing so. About 64 percent of respondents said case studies are an effective marketing tactic, which inched slightly past Webinars and Webcasting at 61 percent.
In all, 91 percent of b-to-b respondents use content marketing and, in general, the larger the company the more tactics used. Articles on a website ranks among the most popular content marketing tactic at 83 percent followed by newsletters at 78 percent. Print magazine use, the study finds, stayed the same at 31 percent.
Catalyst Paper announced that it has accepted, subject to US Court approval, a binding bid from an acquisition vehicle organized by Hackman Capital and its affiliates to purchase the assets of the closed Snowflake facility and the shares of Apache Railway for US$13,460,000 and other non-monetary consideration. The buyer intends to continue to operate the Apache Railway as a going concern, and the transaction is supported by the Town of Snowflake and various local interests.
“We are pleased that this transaction has progressed efficiently and that the community’s interests have been considered through the process and in the successful bid,” said President and Chief Executive Officer Kevin J. Clarke. “While paper manufacturing is part of Snowflake’s past, this transaction puts the asset on a path to a new future that can continue to bring value to the region.”
The winning bid was made at the auction held on December 17, 2012 under the US Court-approved sale and investor solicitation procedures. The sale is expected to complete in the first quarter of 2013 and is subject to various closing conditions. A hearing in the US Court is scheduled for December 19, 2012 to consider approval of the sale.
HarperCollins has published the Visual Companion and Official Movie Guide for The Hobbit, as well as children's books The Movie Story Book and The World of Hobbits to coincide with the cinema release of the first of three films based on the prequel to JRR Tolkien's Lord of the Rings trilogy.
Arctic Paper delivered 404 tonnes of Arctic Silk 130gsm to Italian book printer Rotolito Lombarda Spa for the 740,000 books that made up the initial print runs of the four titles, reprints of which are already in the pipeline.
Adrian Sutcliffe, group production and purchasing manager of HarperCollins, said: "The books had to be produced on a silk coated with FSC accreditation, and they had to give excellent quality of print.
"At HarperCollins we particularly look for smoothness on both sides and excellent bulk to make our books really stand out and look like prestigious. Arctic Silk is our standard silk coated grade used by HarperCollins across Europe.
"It gives bulk and thickness to the pages without compromising on smoothness which some coated sheets lack. This gives us a superb printing surface every time and automatically gave The Hobbit books the high-end appeal we are looking for as a publisher."
Brent crude rose for a second day in London after an industry report showed stockpiles fell the most in more than three months in the U.S., the world’s biggest oil consumer.
Futures gained as much as 0.9 percent after closing $1.20 a barrel higher yesterday. U.S. crude supplies dropped by 4.1 million barrels in the seven days ended Dec. 14, the most since the week to Aug. 31, data from the American Petroleum Institute showed. A government report today may say inventories fell by 1.75 million barrels, according to a Bloomberg News survey. Oil has advanced this week amid speculation that U.S. lawmakers will agree on steps to avert tax increases and spending cuts known as the fiscal cliff.
“Any kind of progress in the fiscal-cliff debate will drive prices up,” Thina Saltvedt, an analyst at Nordea Bank AB, said today by telephone. “That’s been the main driver in the last few days, and in the short term the inventory report today could have an impact.”
Brent for February settlement on the London-based ICE Futures Europe exchange was up 84 cents at $109.68 a barrel at 10:45 a.m. local time. The European benchmark crude was at a premium of $20.89 to the corresponding WTI contract, from $20.44 yesterday.
Berry Plastics Group, Inc., a leading global manufacturer and marketer of value-added plastic packaging and engineered materials, introduces its latest product line of Flexible Intermediate Bulk Containers (FIBC) - DriBulk&rade; Container Liners. New DriBulk Container Liners offer an easy, economical, and efficient solution for storing, shipping, and transporting dry bulk goods for a variety of industries, including agriculture, minerals, chemicals, food, and more.
"As one of North America's largest FIBC manufacturers, we believe Berry Plastics has set the global standard for top-quality flexible intermediate bulk containers," explained Ernie Giordano, Director Sales and Marketing for Berry Plastics' FIBC Group. "We are very excited to introduce DriBulk Container Liners which will serve as an innovative solution to assist our customers with maximizing their efficiencies."
"DriBulk Container Liners are inserted into and secured in an empty trailer, allowing the transporter to directly load the product to maximize container space," added Giordano. "As we like to explain, there are super sacks, and then there are SUPER SACKS. DriBulk Container Liners allow you to place a truckload of dry bulk goods, such as agricultural items, chemicals, minerals, foods, plastics, and more, into one 'super sack,' protecting the load and minimizing post delivery trailer cleaning."
Available in standard 20-foot and 40-foot container sizes, DriBulk Container Liners can also be made in custom dimensions. With optional features including industrial fasteners, buckles, closures, and top- or side-spouts, DriBulk Container Liners can be customized in endless ways to suit the needs of virtually any application.
Clearwater Paper Corporation today announced the completion of the next phase of the company's newest facility at Shelby, N.C., culminating in the start-up of the company's new through-air-dried (TAD) paper machine. The machine produced its first finished ton and converted product on December 13.
"Construction of all phases to date of the nearly one-million-square-foot facility came in on-time and on-budget," said Gordon Jones, chairman and CEO. "The dedication and support of Clearwater Paper's 200 Shelby employees have already made this facility a huge success."
Upgrades to a second Clearwater Paper TAD paper machine, located at the company's facility in North Las Vegas, have also been completed. The enhancements enable the facility to produce TAD ultra-bathroom tissue and household towels.
New production and distribution capability at Shelby is expected to increase the company's ultra and premium offerings to existing southern and East Coast customers. Collectively, the two TAD machines will create new opportunities to expand the company's private label consumer tissue business around a national manufacturing footprint, supplying these key products to customers across the United States.
"The completion of the flagship facility in Shelby fulfills one of Clearwater Paper's primary business strategies — to focus on growing the consumer products segment of the company," said Linda Massman, president and COO. "Combined with the recent upgrade at our North Las Vegas facility, these two important projects have helped Clearwater Paper achieve our goal of a coast-to-coast manufacturing footprint focused on best serving our private label customers."
Stora Enso and Chalmers’ Encubator have reached a co-operation agreement under which Stora Enso will act as a partner to Encubator. The focus of the collaboration is an innovation project developing intelligent pharmaceutical packaging. The idea comes from Stora Enso, and Encubator will run the business development together with Chalmers School of Entrepreneurship.
“This gives us a new approach to innovations supporting our packaging business. Forming a dedicated team will create an environment that can enable successful market entry and create a growth company,” says Mats Nordlander, Executive Vice President, Stora Enso Renewable Packaging.
The innovation project will develop intelligent pharmaceutical packaging to address the problem of poor adherence to prescription instructions by patients, a problem which in Sweden alone causes costs of over SEK 20 billion annually. The package simplifies communication between patient and doctor by registering when pills are removed from the package. If the medication is missed, a reminder is sent wirelessly to, for example, a mobile phone. Information may also be shared with family members to increase support.
Priority Plastics, Inc., a national plastics manufacturer of custom and stock plastic containers, announced today the acquisition of CCW Products, Inc. The acquisition expands Priority Plastics' footprint across the US and increases its product offerings. The two combined companies will exceed $70 million in sales with over 350 employees.
CCW Products, Inc. is a manufacturer of FDA approved food grade PVC and PET plastic containers in a variety of shapes, sizes and fluid capacities. CCW specializes in wide mouth PVC and PET plastic containers providing over 300 SKUs for more than 500 customers with annual sales exceeding $19 million. CCW's 80,000 square foot Denver facility and close proximity to three interstate highways will amplify product and shipping options for Priority customers.
"CCW is a great fit for Priority. With a similar culture and 30 year business history, our two companies will meld together well," says Andrew Srenco, President & CEO, Priority Plastics, Inc. "We are continuing to make investments for our customers and we will now be able to offer more products and increased shipping efficiencies to meet customer priorities. We look forward to working with the 103 employees of CCW Products as we integrate our two companies," said Srenco.
Metso will supply Norske Skog with a grade conversion rebuild from newsprint to lightweight coated (LWC) grades of their PM 2 machine at their Boyer mill in Tasmania, Australia. The rebuilt production line will be fully operational after several phases of rebuild during the first quarter of 2014. The value of the order will not be disclosed.
The main target of the rebuild is to convert the newsprint machine into a competitive lightweight coated paper (LWC) production line. The delivery also includes a cooperation agreement aimed at achieving key objectives of the conversion.
The future capacity of the PM 2 machine after the rebuild will be 140,000 tonnes per year of lightweight coated grades.
Metso’s delivery will include a rebuild of the existing machine calender and a new ValSizer sizing section, a coating preparation and supply system, a TurnDry Compact air dryer, an OptiLoad calender, a ValReel reeler, a WinBelt C winder and parent roll handling equipment.
A large majority of newspaper and magazine publishers have introduced iPad apps for their publications, with 87% offering content to Apple’s popular tablet computer this way, according to a new survey by the Alliance for Audited Media (the newly rebranded Audit Bureau of Circulations). And that’s just the tip of the iceberg: the AAM survey found that publishers are bullish on tablets across the board.
Most notably, 63% of publishers surveyed by the AAM said they believe “tablets are the most important digital channel for their publication’s future.” And they’re looking beyond Apple: the proportion of publishers developing apps for Amazon’s Kindle devices jumped from 24% in 2011 to 67% this year, while the proportion developing for Nook soared from 14% to 57% over the same period.
In terms of delivery mechanism, native and Web-based apps are both still popular, with 70% of publishers producing native apps, and 67% producing Web-based apps. The proportions vary noticeably between magazine and newspaper publishers: magazine publisher favor native apps over Web-based apps by 80% to 50%, while 69% of newspaper publishers use native apps, compared to 74% using Web apps. Looking ahead, 31% said they plan to continue using native apps next year, while 41% said they will experiment with HTML 5, and 44% said they are undecided.
Most publishers are also developing multiple apps for each device, producing an average 3.4 apps for the iPad and iPhone, three apps for the Kindle, and 2.4 apps for the Nook.
Turning to the all-important question of monetization, 77% of publishers surveyed said their mobile businesses will have to rely on both circulation and advertising revenue; that’s up from 52% in 2009.