Electronics For Imaging, Inc., a world leader in customer-focused digital printing innovation, today announced its results for the first quarter of 2013.
For the quarter ended March 31, 2013, the Company reported first quarter record revenue of $171.4 million, up 7% compared to first quarter 2012 revenue of $160.1 million. First quarter 2013non-GAAP net income was $15.8 million or $0.33 per diluted share, which included an unfavorable non-operational currency impact of $0.04 per diluted share, compared to non-GAAP net income of $14.2 million or $0.30 per diluted share for the same period in 2012. GAAP net income was $8.4 million or $0.17 per diluted share, compared to $6.2 million or $0.13 per diluted share for the same period in 2012.
Catalyst Paper announced today that President and Chief Executive Officer Kevin J. Clarke will step down from his position later this spring. Mr. Clarke has advised Catalyst’s Board of Directors that, with the company’s recent financial restructuring successfully completed, the time is right for a leadership transition.
“Kevin steered Catalyst through a pivotal three years and the Board of Directors extends its appreciation to him,” said Chairman Les Lederer. “Under his leadership, the company intensified its focus on stakeholder relationships which culminated in the rapid completion of a reorganization plan that significantly improved Catalyst’s balance sheet and cost structure.
“His printing and publishing industry experience was also helpful in advancing product and market development objectives,” Mr. Lederer said, “and served to put Catalyst on better footing to address the ongoing challenges of the fiercely competitive paper and pulp industry.”
Mr. Clarke will continue in his role for an interim period through June 2013 to assist in a smooth transition. He plans to return to his home in New York State, where his family resides. A search for his successor is underway.
AAA Fuel Gage 4/19/13
National Unleaded Regular:
Current Average - $3.506/gallon
Month Ago Average - $3.697/gallon
Year Ago Average - $3.891/gallon
Highest Recorded Average - $4.114/gallon on 7/17/08
Current Average - $3.932/gallon
Month Ago Average - $4.053/gallon
Year Ago Average - $4.136/gallon
Highest Recorded Average - $4.845/gallon on 7/17/08
Current Exchange Rates as of 4/19/13
American Dollar to Canadian Dollar = 0.975932
American Dollar to Chinese Yuan = 0.161826
American Dollar to Euro = 1.308765
American Dollar to Japanese Yen = 0.010070
American Dollar to Mexican Peso = 0.081701
West Texas Intermediate crude rose for a second day to trim its third weekly drop, the longest losing streak since November. Brent climbed above $100 a barrel.
WTI advanced as much as 1.2 percent in New York. Prices increased the most in three weeks yesterday after the 14-day relative-strength index sank below 30 on April 17, a signal that the market is oversold, data compiled by Bloomberg show. Futures may decline next week on signs that economic growth is slowing, according to a weekly Bloomberg News survey.
“We would expect a rebound,” said Miswin Mahesh, an analyst at Barclays Plc in London. “This year we’ll see very good demand growth,” and the seasonal weakness in demand is “something that we think is very transient, very temporary,” he said.
WTI for May delivery increased as much as $1.06 to $88.79 a barrel in electronic trading on the New York Mercantile Exchange and was at $88.53 at 12:22 p.m. London time.
Sonoco, one of the largest diversified global packaging companies, today reported financial results for its first quarter that ended March 31, 2013.
First Quarter Highlights
•First quarter 2013 GAAP earnings per diluted share were $.47, compared with $.42 in 2012.
•First quarter 2013 GAAP results include $.03 per diluted share in after-tax charges related to previously announced restructuring activities and the impact of currency devaluation on operations in Venezuela. First quarter 2012 GAAP results included a $.10 per diluted share charge related to restructuring activities and acquisition-related expenses.
•Base net income attributable to Sonoco (base earnings) for first quarter 2013 was $.50 per diluted share, compared with $.52 in 2012. (See base earnings definition and reconciliation later in this release.) Sonoco previously provided first quarter base earnings guidance of $.50 to $.54 per diluted share.
•First quarter 2013 net sales were $1.18 billion, down 3 percent, compared with $1.21 billion in 2012.
Skateboarder Magazine isn't abandoning print altogether, but--not surprisingly for a young, male enthusiast title--it's going to concentrate a lot more on digital from now on.
The 49-year-old GrindMedia brand is replacing its subscription-based print magazine with a free digital edition and a bimonthly print replica of the digital issue beginning with its current April/May issue.
"We've learned that we need to change our focus with this particular audience and start with the notion of quick-hit videos," says Norb Garrett, senior vice president and group publisher for GrindMedia, an action and adventure sports division of Source Interlink. "From there we build other ancillary products. The magazine becomes almost a promotional device rather than the central focus. We've had to shift where the starting point is and where the delivery point is."
The changes began early this year as Skateboarder Magazine saw several of its print-focused editorial staff replaced with web and video experts. Those moves came in response to growing web traffic--up 186 percent since they increased investment in video last year, Garrett says--and traditionally poor penetration into the audience. He estimates skateboard print media reaches less than 250,000 out of a potential audience of 22 million.
Crown Holdings, Inc. today announced its financial results for the first quarter ended March 31, 2013.
First Quarter Highlights
Income per diluted share $0.28; Before Certain Items $0.50
Global beverage can volumes grew 6% driven by strong growth in Brazil and Asia Pacific
Second production lines in Putian, China and Bangi, Malaysia were commercialized
Net sales in the first quarter grew to $1,973 million over the $1,947 million in the first quarter of 2012, primarily driven by increased global beverage can sales unit volumes more than offsetting lower raw material costs.
First quarter gross profit improved to $299 million over the $287 million in the 2012 first quarter, primarily due to increased beverage can sales and reduced depreciation expense, partially offset by lower profits in the European Food segment.
Selling and administrative expenses were $104 million in the first quarter compared to $106 million in the same period last year.
Segment income (a non-GAAP measure defined by the Company as gross profit less selling and administrative expense) increased to $195 million in the first quarter compared to $181 million in the first quarter of 2012 primarily due to improved gross profit.
Cascades's new EVOK™, the first polystyrene foam food tray in North America made with recycled material, can now be found on the grocery shelves of an important Canadian distributor. EVOK™ was created to package meat, poultry, fish, vegetables, and fresh fruit. Cascades is proud to offer this innovative new product and reaffirm its position as a leader in packaging that respects the environment.
By reducing the use of virgin material and introducing recycled material—at a level of 25%—Cascades has lowered the carbon footprint of food packaging.
METRO has adopted the initiative with lots of enthusiasm. “Rethinking packaging is one of our priorities in our Corporate Responsibility approach,” says Mr. Serge Boulanger, METRO's Senior Vice-President, National Procurement and Corporate Brands. “We're very pleased to contribute to the best practices by becoming the first national brand to use EVOK™ in all our stores in Quebec.”
Replacing regular packaging with EVOK™—which contains recycled material—enables METRO to reduce Quebec's greenhouse gas emissions (GHG) by some 600 tons. That's roughly the equivalent produced by 200 compact cars.
Brent crude rose from its lowest closing level in nine months and West Texas Intermediate advanced for the second time in six days,as European equities gained. OPEC was said to have no plans for an emergency meeting.
Brent climbed as much as 1.4 percent, reversing an earlier loss of 1 percent. WTI added as much as 1.2 percent. European shares rose after the biggest four-day selloff since July as Italian and Spanish bonds rallied. The Organization of Petroleum Exporting Countries has no plans to hold emergency talks in response to oil’s drop, according to two delegates with knowledge of the group’s policy.
“We do not believe that the timing is there just yet for Brent prices to drop sustainably below $100,” said Torbjoern Kjus, a senior oil analyst at DNB ASA in Oslo.
Brent for June settlement on the London-based ICE Futures Europe exchange increased as much as $1.41 to $99.10 a barrel, and traded for $99.06 at 10:29 a.m. local time. Brent settled at $97.69 yesterday, the lowest close since July 2, after dropping below $100 a barrel this week for the first time in more than eight months. The volume of all futures traded today was 40 percent higher than the 100-day average.
WTI for May delivery was at $87.70 a barrel, up $1.02, in electronic trading on the New York Mercantile Exchange at 10:24 a.m. London time after falling earlier as much as $1.07 to $85.61.
Postmaster General Patrick R. Donahoe told a House committee today that the Postal Service is currently operating with a broken business model and the gap between revenues and costs will only get worse in the coming years unless the laws that govern the Postal Service are changed.
“Our financial problems are due to the restrictive laws that prevent us from fully responding to changes in consumer behavior,” Donahoe testified before the House Oversight and Government Reform Committee. “Any private sector company could quickly adapt to the market changes we have experienced, and remain profitable. However, we do not have all of the flexibility we need to adapt to a changing marketplace.”
Donahoe said the Postal Service continues to be very aggressive in cost-cutting actions it can take within the law, reducing its cost base by $15 billion since 2006. “No other organization, public or private, that I am aware of, can claim a similar cost reduction while continuing to function at a high level. And yet, we have to go much further and much faster and we are prepared to do so.”
The Postal Service would have reduced costs an additional $2 billion annually by implementing the new delivery schedule announced in February. However, according to Postal Service legal opinions, House Resolution 933 to fund government operations for the remainder of the fiscal year included language specifically designed to prevent the Postal Service from changing to the new delivery schedule.
“The Postal Service is a responsible, law-abiding arm of the executive branch. Congress passed a law, we reviewed it carefully, we complied with it and we informed our customers – which is what we did last week,” Donahoe told the Committee. “Our customers require certainty, especially about something as fundamental as our delivery schedule. And so, we announced that we would delay implementation of our new schedule until we gained legislation giving us the ability to move forward.”
The fire, in the stockyard at Smurfit Kappa's SSK site in Nechells, to the north-east of Birmingham, broke out at around 10pm last night.
It was a severe blaze, with 15 fire engines and some 100 firefighters from West Midlands Fire Service required to tackle it.
There were also concerns about smoke drifting across the nearby M6 motorway. Nobody was hurt in the incident.
The site is one of Smurfit Kappa's two recycled packaging mills in the UK, and produces testliner and recycled fluting. It processes more than 200,000 tonnes of recovered fibre a year, according to the company.
The fire is understood to have involved 10,000 tonnes of cardboard for recycling stored in the yard. Local reports said the main building was unaffected, but this is yet to be confirmed by Smurfit Kappa.
There has been a paper mill on the site for 150 years, and the mill has been manufacturing recycled grades since 1911. The name of the mill, which currently employs 110 staff, is based on the surnames of the founders: Smith, Stone and Knight.
Smurfit Kappa issued a brief statement this morning. The company said: "At approximately 10pm last night a fire started in the paper yard and rapidly spread to the remaining raw material stock. Emergency services were called and are co-ordinating a combined operation to bring the situation under control. No one has been injured and we are co-operating fully with the emergency services on site."
The much-touted new deforestation policy of controversial paper giant Asia Pulp & Paper (APP) will save almost no forests in its main base of operations, Sumatra, Indonesia, a new report by NGO coalition Eyes on the Forest has concluded.
APP and Sinar Mas announced the policy in February as “an end to the clearing of natural forest across its entire supply chain in Indonesia, with immediate effect.” However, a new Eyes on the Forest (EoF) analysis that looks at all APP concessions – including those not covered by the moratorium - in Riau Province, Sumatra, found that the policy protects at most 5,000 hectares of natural forest. This compares to the deforestation of more than 2 million hectares caused by the operation of APP’s Sumatra pulp mills over the past three decades.
“We’re extremely disappointed. When APP published the policy, we thought it could be great news for Indonesia’s forests, biodiversity and citizens,” said Nazir Foead, Conservation Director of WWF-Indonesia. “However, after this new analysis for Sumatra, it appears that the company has announced a halt to deforestation only after completing nearly all the deforestation it could possible do.”
Among APP’s many natural forest wood sources are the concessions of its suppliers in Riau Province. They alone lost more than 680,000 hectares of natural forest between the start of the company’s Riau pulp mill in 1984 and 2012. Of that, 77% was lost in legally questionable ways, while an even larger proportion - 83% - consumed the habitat of critically endangered Sumatran tigers and elephants.
WWF called on APP and Sinar Mas to announce a forest restoration commitment.
“The company is asking for a grand amnesty, for the ‘past to be forgotten’, leaving our country to deal with devastated ecosystems, social conflicts, on-going greenhouse gas emissions and critically endangered species who lost their habitat,” says Aditya Bayunanda, GFTN and pulp & paper manager of WWF Indonesia. “That is not acceptable, Indonesian NGOs are calling on APP to restore selected peatlands and forests lost in protected, High Conservation Value areas and to mitigate the damage its operations caused to surrounding natural forests, peat soils, and wildlife.”
Companies can measure and minimize the environmental footprint of the wood-based products they are sourcing, according to a recent study by Quantis. The study confirmed that it is possible to quantify to a certain extent the impact differential between certified and non-certified forest products within Life Cycle Assessments (LCA).
"This development is extremely beneficial to everybody wishing to quantify the impact of their responsible timber sourcing practices and integrate it within product life cycle assessments," commented Sarah Price, Head of Projects & Development of PEFC International, the partner to Quantis in this project.
Corporations and consumers alike share a desire to better understand and address the sustainability of the products they manufacturer and consume. However, product sustainability is a massively complex, multifaceted arena, requiring a corresponding diversity of approaches to manage and evaluate. One of these approaches is life cycle assessment, a technique to assess environmental impacts associated with all the stages of a product's life from cradle-to-grave. For timber and wood-based products, however, there has until now not been any data or methodology to integrate the comparative environmental impacts of certified products as compared to uncertified products into life cycle assessment.
“Responsible companies’ source certified forest products because they know it’s the right thing to do, but until now they’ve been unable to quantify the real impact of that decision on climate change, human health or ecosystem quality,” Ms Price continued. “PEFC saw this as a lost opportunity and partnered with Quantis to develop new LCA datasets and fill this gap.”
MeadWestvaco Corporation, a global leader in packaging and packaging solutions, received Walmart’s "Responsibility Award for Total Health and Wellness,” which recognizes MWV’s development of the Shellpak® Renew medication adherence solution.
Shellpak Renew was launched in June 2012 to provide an improved and more sustainable medication adherence package for prescription medicines. This type of packaging is proven to help improve patient medication adherence. Better adherence can lead to better patient health.
Shellpak Renew was developed based on feedback from pharmacists and patients. The outer carton is made of MWV’s Natralock®, an environmentally-friendly, paperboard-based solution that maximizes the use of recyclable materials and is tear-resistant for a high level of child resistance. The new sustainable and easy-to-use Shellpak Renew is 40 percent smaller and 30 percent lighter than the original Shellpak®, and eliminates the use of plastic. This enhances the sustainability profile, minimizes pharmacy shelf space and improves convenience for patients. To improve adherence, Shellpak Renew includes an integrated calendar for patients to track their doses of medication.
Shellpak Renew is an evolution of MWV’s Shellpak adherence solution, which originally launched in 2008. In a first-of-its-kind study published in Clinical Therapeutics, “A Pharmacoepidemiologic Analysis of the Impact of Calendar Packaging on Adherence to Self-Administered Medications for Long-Term Use,” conducted by Venebio and funded by MWV, when used alone Shellpak was found to demonstrate a statistically significant impact over vials, improving adherence and persistence for long-term daily medications.
While a print catalog may be justified for a major sales holidays like Mother’s Day or Valentine’s Day, e-mail and online advertising can be more profitable marketing vehicles for catalog retailers when it comes to lesser events, such as teacher or employee recognition days.
Typically, major events warrant printing and mailing catalogs to drive sales because so many consumers are shopping for several weeks ahead of the event. But for other events, catalogers may not be able to justify producing a catalog that draws the attention of fewer consumers who may not shop much in advance for these lesser observances. That’s where online tools can help drive traffic to their e-commerce sites.
By placing display ads on web sites or sending e-mail marketing messages, gift retailer Harry & David Holdings Inc. can quickly get marketing messages in front of consumers, says Paul Lazorisak, Harry & David vice president of customer marketing. “The promotional cadence is geared to those moments,” he says. “Catalogs can’t target down to several hundred people,” Lazorisak says.
As a result, Harry & David, sends fewer printed catalogs than it once did, though Lazorisak would not be specific on how many fewer, and relies more on online marketing and its e-commerce site to carry sales. According to preliminary data from the 2013 Internet Retailer Top 500 Guide, in 2012, Harry and David’s e-commerce sales of $171.9 million accounted for 46.5% of its fiscal 2012 sales of $369.3 million; in 2005, web sales accounted for 17% of total sales of $561.8 million.
HP today announced new products and expanded solutions that enable printing customers to reduce their environmental impact while benefitting from the quality and reliability of Original HP printing supplies.
The new offerings include a complete line of sustainably sourced papers and the addition of Office Depot as HP’s newest retail recycling ally.
An industry leader in the shift to more environmentally sustainable printing, HP is leveraging key relationships with manufacturing, retail and nongovernmental organization (NGO) partners to provide customers with products and solutions designed with the environment in mind—from design and manufacturing to use and recycling.
“Our customers want printing solutions that offer quality and reliability, with proven environmental performance,” said Annukka Dickens, director, Americas Environmental Leadership Team, HP. “HP’s approach includes innovative and environmentally sustainable product design, and free and easy return and recycling to help customers reach their sustainability goals.”
Cenveo, Inc. today announced that its subsidiary, Cenveo Corporation, has completed the refinancing of its existing senior secured Term B Loan and Revolving Credit Facility with an amended and restated $360 million Term B Loan facility, through Bank of America, N.A. as administrative agent, and joint lead arrangers Bank of America, N.A., Macquarie Capital (USA) Inc. and Barclays Bank PLC, along with a new $200 million asset based loan (“ABL”) Credit Agreement with Bank of America, N.A., as administrative agent, and Bank of America, N.A., Wells Fargo Bank, National Association, Barclays Bank PLC and General Electric Capital Corporation as joint lead arrangers.
The new credit facilities will provide significant benefits for the company including:
• Reducing the Term B Loan all-in interest rate from 7.00% to 6.25%;
• Lowering the cost of borrowing on our revolver from 7.00% to approximately 2.20% based on current one month LIBOR rates and the initial interest rate spread;
• Providing increased financial flexibility with updated covenants;
• Subject to the satisfaction of certain requirements relating to the refinancing of Cenveo’s existing senior unsecured notes and senior second lien notes, extending the Term B Loan maturity from December 21, 2016 to April 16, 2020 and extending Cenveo’s revolving credit facility maturity from December 21, 2014 to April 16, 2018.
West Texas Intermediate fell for the fourth time in five days, trading near the lowest level in almost four months before government data forecast to show U.S. crude inventories rose last week.
WTI dropped as much as 1 percent. An Energy Department report today may show crude supplies rose 1.2 million barrels to the highest level in 22 years, according to a Bloomberg survey. That’s contrary to a report yesterday from the American Petroleum Institute, which showed stockpiles slid 6.7 million barrels last week, the most since the seven days ended Dec. 28.
“The oil market is looking quite weak and there’s a comfortable supply-demand situation in the short term,” said Gerrit Zambo, an oil trader at Bayerische Landesbank in Munich, who predicts the European benchmark, Brent, may tumble to $80 a barrel in the first half. “The fundamental reason for the bearish situation is the cautious outlook worldwide.”
WTI for May delivery declined as much as 87 cents to $87.85 a barrel, and was at $88.03 in electronic trading on the New York Mercantile Exchange at 11:29 a.m. London time.
Digital advertising revenue climbed to a record high of $36.6 billion last year, a 15% rise over 2011, according to a new report by the Interactive Advertising Bureau.
According to the “IAB Internet Advertising Revenue Report,” conducted by PricewaterhouseCoopers, search continued to be the digital champ, with 2012 revenue of $16.9 billion, or 46% of total digital expenditures, up 14.5% from 2011.
Display-related advertising revenue last year totaled $12.0 billion, or 33% of total digital expenditures, up almost 9% over 2011. Digital video, a component of display-related advertising, brought in $2.3 billion last year, an increase of 29% over 2011.
For the second year in a row, mobile achieved triple-digit percentage growth. Last year, advertisers spent $3.4 billion on mobile ads, an increase of 111% over 2011. Mobile accounted for 9% of total internet ad revenue in 2012.
A printing plant in New Albany, owned by Shoreview, Minn.-based Deluxe Corp., will close by the end of the year, and about 30 workers are being laid off in the process.
Printing done at the New Albany plant is being moved to a new facility that the company recently opened in Chicago, according to Terri Shapiro, executive director of brand and media relations at Deluxe. She said many of the workers being laid off will be offered severance.
The closure is part of a realignment for Deluxe.
“Deluxe is a company … really going through a change,” she said.
Years ago, the business was primarily a check printer. Now, it offers a range of printing and marketing products, including brand development, search engine optimization and e-mail marketing.
The Kruger Corner Brook paper mill received a boost from the Newfoundland government recently, when the provincial cabinet quietly extended a tax exemption until at least 2017, reports The Telegram. The St. John’s newspaper estimates the tax break is worth about $6 million.
According to the paper, in an order in council issued by the provincial cabinet in early March, the government waived the “managed land tax” for a period of five years, from the 2012/13 budget year through to 2016/17.
Natural Resources Minister Tom Marshall told the paper the tax break has been in place since a previous restructuring effort at the mill in 2009, and the government chose to extend it for five years as the mill struggles to remain financially viable.
“If the paper mill goes down, I’m advised that the sawmills will go down as well,” Marshall said. “It’s not just one plant; it’s the whole industry.”
Xeikon NV, an innovator in digital color printing technology, announced today that Colorfx, a Des Moines, Iowa-based print and marketing services company, has purchased and installed a Xeikon 8800 digital color press to more cost-effectively print high-volume variable data pieces for its customers.
Colorfx, which specializes in creating and executing multichannel marketing communications and direct marketing programs for its clients, plans to expand its digital print-on-demand services to include more full-color personalized pieces, such as direct mail, brochures and inserts.
"We are continually looking for ways to create more value for our clients and help them grow their business cost-effectively," said Jon Troen, president of Colorfx. "We needed a press that offered the ideal combination of productivity, flexibility and quality, and the Xeikon 8800 was head and shoulders above the competition."
Transactional color variable-print volumes are expected to achieve unprecedented growth at an annual rate of 25 percent between 2011 and 2016, according to InfoTrends.1 Print service providers can capture more variable-data print jobs with the new Xerox Color 8250 Production Printer – an economical choice that is versatile enough to meet the demanding needs of this marketplace.
The 8250 follows a long line of transactional devices that have established Xerox as the leader in the variable-print segment.
“The printer fills a sweet spot in our production mix while complementing our Xerox Nuvera® and iGen® presses,” said Alan Olivero, president, Matrix Imaging Systems.
The system is targeted for 800,000 to four million impressions per month and will deliver variable, vibrant color. It eliminates the need for preprinted offset shells – allowing print service providers to offer the additional value of one-pass color on statements and direct mail pieces.
First, we would like to thank to the companies who have taken the time to listen to us, those that are currently working with us, and those that have corrected their claims.
Shortly after its beginnings in 2008, Two Sides launched a campaign in the UK to challenge negative environmental claims about print and paper being made by many companies in order to promote electronic statements (ex: e-billing). You’ve all seen them: Go green - Go paperless. Save trees.
Two Sides made this a focused initiative with a strategic approach to get the claims removed or changed. The reasoning behind this is:
•The “go green – go paperless” message is damaging to the print, paper and mail value chain and millions of jobs rely on this value chain.
•Print on paper has unique environmental features that many other products and materials do not.
•The “saving trees” and “go- green” messages create a false impression that forests and trees are a finite resource that is being lost instead of a renewable resource being replenished based on sustainable forest management practices.
•Corporations must follow best practices for environmental marketing. Claims should be based on sound and peer-reviewed scientific evidence (ex: CSR Europe guidelines, UK CAP, US FTC Green Guides and ISO14021)
•The full impact of switching to e-media are often not properly considered and sometimes ignored.
•The life cycle of e-statements is not paperless because many people print e-statements at home or at the office for record-keeping and other uses.
Although the process was time-demanding and required many discussions and exchanges, our success was more than what we had expected. In total, 80% of the companies (27 out of 34) we engaged changed or removed their anti-paper claims, including several large corporations.
In July 2010, we launched the same campaign in the US with a strategic approach and focus to engage the top banks, utilities and telecoms that are currently using similar environmental claims. We looked at over 100 companies and discovered that half of them are using misleading claims. We are now systematically addressing these. The “list” is growing weekly and our database now includes about 250 companies in many different sectors.
Thanks to all of you who have been sending us claims of concern. If you see one, just email it to us at email@example.com
Our goal is an 80% success rate in getting claims changed or removed.
RCS Libri, Grupo Planeta, Robert Laffont, Univers Poche and De Arebiderspers / A. W. Bruna Publishers have signed with Open Road Integrated Media to have Open Road distribute and market English-language digital editions of their books in English speaking territories. The deals will add a mix of mostly popular and literary fiction titles to Open Road’s international publishing partners program. Open Road CEO Jane Friedman said she expects to start publishing the titles this fall with the program continuing to build into 2014. She said she was “very pleased” with the list Open Road has created with its partners after what were some lengthy negotiations, noting that Open Road wanted to “make sure we are bringing in books that will sell.”
In most cases, Open Road has world English rights and the translations are being done by the company’s partners. While Open Road has published some e-books in translation from Barcelona eBooks—and has deals in place with Mondadori and Place Des Editeurs—the new agreements give Open Road a critical mass of titles. The titles will “become part of what we do here” and initially will be marketed like other Open Road titles, Friedman said, but noted that “we’ll learn what we have to add. . .we’ll be experiment in the truest sense of the word.” All titles will be sold throughout North America and most throughout the English-speaking world.
In its agreement with Italy’s RCS Libri, the program will begin with 20 titles from the romance, erotica, historical fiction, and literary fiction categories from bestselling authors such as Franco Di Mare, Dacia Maraini and Oriana Fallaci. The partnership will continue with backlist from these authors, and will also include a select list of titles from Rizzoli First, a digital first imprint established in late 2012. Under its deal with the Dutch publisher De Arebiderspers / A. W. Bruna Publishers, Open Road will publish 25 titles from its backlist.
In Spain, Open Road will publish about 25 Planeta books of historical fiction, women’s fiction, and literary fiction, including Angeles Caso’s Against the Wind, and Luz Gabas’ Palm Trees in the Snow.
The Deloitte Consumer Spending Index ticked down slightly in March, but has remained relatively steady with a reading over 4.0 the past five months. The Index tracks consumer cash flow as an indicator of future consumer spending.
"The drastic ups and downs among factors including wages, home prices and unemployment claims have subsided, delivering more stability to the Index, which remains at a level consistent with real personal consumption growth of around 2 percent at an annual rate," said Patricia Buckley , director, economic policy and analysis, Deloitte Services LP, and author of the monthly Index. "Rising real home prices and small but steady consumer spending increases are among factors suggesting the country may be poised for growth this year, should the economy avoid negative impacts from Europe's financial troubles or the debt ceiling debate this summer."
The Index, which comprises four components — tax burden, initial unemployment claims, real wages and real home prices — fell slightly this month to 4.12 from a reading of 4.37 the previous month.
People magazine is best known for its coverage of celebrities, gossip and entertainment, but the brand has begun edging deeper into the general lifestyle category with the introduction of a new editorial project that rolled out last week.
Khaled Hosseini, author of the best-selling novel The Kite Runner, conducted a live Q&A with the People.com audience on Thursday—the chat lasted more than an hour and more than 670 users submitted questions online. More than half the users stayed to participate for over 30 minutes, with another two thirds of users staying for over 20 minutes.
The online event is a far fall from its coverage of Hollywood drama, and shows that People is making an effort to incorporate more literary and lifestyle content.
“We just started a new franchise about a month ago called ‘What We’re Reading,’” says Janice Morris, managing editor for People Digital. “Every Thursday we’ve started posting what the staff book picks are—it’s more of a companion piece to the book picks that are in the issue every week. We have formal reviews in the print issue of what’s new and what’s out, and People.com’s ‘What We’re Reading’ is about what [editors] are looking at on their own nightstands. We’ve started going into books online slowly in that way.”
Morris says that the posts about staff literature choices have been generating engagement from readers in the form of comments, likes and tweets.
There are about 300 million people who live in the United States, almost a third, or 78 million, of whom are baby boomers. Now that America’s largest population segment is aging, the Pennsylvania-based Great Valley Publishing Company is rebranding its aging-focused magazine to better reflect the nation’s new demographics.
The publisher’s bimonthly title Aging Well will become Today’s Geriatric Medicine. The first issue will hit with the May/June edition, and the brand’s digital presence has been remade as well with the introduction of TodaysGeriatricMedicine.com
“Now, with older adults representing the largest segment of America’s population, [we] are expanding the scope of coverage to include other health care professionals whose participation figures prominently in the care of older adults, including dietitians, nurses, social workers, physical therapists, and occupational therapists,” a statement from Great Valley Publishing Company says.
Today’s Geriatric Medicine is part of a Great Valley Publishing roster of publications, which includes Today’s Dietitian and Social Work Today. Great Valley also publishes the health information management trade magazine, For The Record, as well as the monthly, Radiology Today.
Brent crude fell below $100 a barrel for the first time since July amid signs global economic growth may slow, curbing fuel demand. West Texas Intermediate declined to a four-month low on speculation U.S. supplies rose.
Brent futures slid as much as 2.6 percent to $98 a barrel, while WTI dropped to the lowest intraday price since Dec. 14. Prices fell after German investor confidence declined more than economists forecast in April. U.S. crude stockpiles probably climbed 1.5 million barrels last week to 390.4 million, the highest since July 1990, according to a Bloomberg survey before a government report tomorrow.
“As with many times in the past, oil has been used as the tool to express concerns about the macro economy and we are in the same situation now,” said Amrita Sen, chief oil market analyst at Energy Aspects Ltd., a research company in London, who predicted on April 8 that Brent may soon drop to $100. “Brent has been under pressure due to an improvement in supplies and a lack of demand.”
Brent for June settlement fell as much as $2.63 on the London-based ICE Futures Europe exchange, and later recovered to $100.05 at 10:50 a.m. local time.
Magazine publishers have found new fans for their content on tablets and e-readers, but will they ever be able to get advertisers to give them the same commitment?
In the three years since consumers got their hands on Apple's first iPads, magazines have been preparing their content for the new tablets and their competitors. Publishers saw in them an opportunity to reverse the practice of devalued subscription prices and upsell advertisers to interactive ads.
While there's been progress on the first front, it’s been hard to sell advertisers on the platform because digital circulation is still relatively small (accounting for less than 3 percent of total circ), and there’s no standard for measuring readership.
The ball got rolling a year ago when MPA—The Association of Magazine Media asked publishers to adopt voluntary guidelines for reporting tablet audience data. They would include data like total number of digital issues sold, readers per issue and time spent reading an issue.
Still, the goal of independently certified metrics was daunting. With all the different devices and measurement firms, the resulting numbers are a hodgepodge that defy easy comparisons. Publishers don't all sell their digital editions to consumers and advertisers the same way, and some of them are still reluctant to give ad buyers all the data they want (particularly if publishers are going to charge them for digital copies) because the numbers are often small. "It’s the lack of consistent measurements that makes it really, really challenging," said Gregg Hano, CEO of digital publishing platform Mag+.
There isn't even complete agreement on the terminology itself, which can lead to some Clintonian discussions of their own. Take downloads: Do you count them when they’ve begun or when they’re completed? And do automatically downloads carry the same weight? Counting reading sessions of an individual issue is another. "If you open our app two weeks after the issue date…What’s the cutoff point?" asked Paul Rossi, evp and managing director of The Economist, Americas.
Another aspect to the struggle, said Robin Steinberg, evp of Mediavest, is that publishers are still invested in viewing tablet editions through their print model, which, unlike the Web, carries a premium CPM. Digital magazines could still be valued as premium because of the functionality and interactivity they let consumers enjoy, but that requires a different business model and metrics, she said.
Luckily, progress is being made. MPA has gotten five analytics companies including Google and Adobe to take previously incomparable tablet reader data and present it in apples-to-apples fashion. The industry's major publishers are slated to participate in the pilot, which is set to start in October. If the pilot goes well, the next step would be to find a third party to audit the data, a challenge unto itself as a research firm would be betting big that the time and resources required to develop a new tool would pay off. The Alliance for Audited Media (formerly Audit Bureau of Circulations) would like the job, but it's unclear MPA wants to go in that direction.
Grainger today reported results for the 2013 first quarter ended March 31, 2013. Sales of $2.3 billion increased 4 percent versus $2.2 billion in the first quarter of 2012. There were 63 selling days in the quarter, one less than in 2012. On a daily basis, sales for the first quarter 2013 increased 6 percent. Net earnings for the quarter increased 13 percent to $212 million versus $188 million in 2012. Earnings per share of $2.94 increased 14 percent versus $2.57 in 2012.
Sales increased 4 percent in the 2013 first quarter reflecting 1 less selling day versus the 2012 first quarter. Sales increased 6 percent on a daily basis and consisted of 3 percentage points from volume, 2 percentage points from price, 1 percentage point from acquisitions and 1 percentage point from higher sales of seasonal products, partially offset by a 1 percentage point reduction from foreign exchange. Daily sales increased 8 percent in January, 6 percent in February and 3 percent in March. Sales in March 2013 were affected by the timing of the Easter Holiday, which reduced daily sales growth by 2 percentage points and also reduced sales growth for the company's reportable business segments. In addition, uncertainty in the United States surrounding sequestration contributed to a decline in sales to the government end market, which represented 15 percent of sales for the U.S. segment.
The company's gross profit margin increased 0.8 percentage points to 45.2 percent versus 44.4 percent in the 2012 first quarter, primarily driven by the United States segment. Company operating expenses in the quarter increased 3 percent including an incremental $22 million in spending to fund the company's growth programs.
For calendar year 2012, US Trade publishers’ net revenue grew by 6.2% as compared to calendar year 2011, according to the Association of American Publishers “StatShot” monthly report for December 2012, released today.
The report also showed increases year over year for net revenue in the Trade categories of Adult Fiction/Non-Fiction and Children’s/Young Adults.
In formats, Adult Fiction/Non-Fiction saw growth in eBooks, downloaded audiobooks and paperbacks while Children’s/YA eBooks, hardcover and board books saw increases. The eBook format in the Religious Presses category also grew as compared to 2011.
The StatShot December data was provided by 1193 publishers. The Trade sector of publishing includes Fiction and Non-Fiction for Adults, Children’s and Young Adult books and Religious Presses.
This report also marks the 10th anniversary of AAP’s compilation of Trade publishers’ annual net revenue from eBook sales. Since the extent and categories of publishers reporting data, the definitions of formats and the methodology of the surveys themselves have evolved and sharpened so dramatically over the past decade, the annual results can’t be directly compared. But it’s possible to view them on an anecdotal level.
Plaintiff booksellers this week filed an opposition motion urging the court not to dismiss their lawsuit against Amazon and the big six publishers, arguing that there is indeed enough evidence of restraint of trade to keep the case moving forward. The filing comes in response to independent motions filed two weeks ago by Amazon and the big six publishers, in which both defendants asked the court to toss the suit as without merit. But the booksellers say a basic reading of the facts is more than enough to sustain their action.
“Having developed and successfully exploited its Kindle e-book reader, which dominates the e-reader market, Amazon entered into written contracts with the Big Six that facially blessed the use of an Amazon controlled digital rights management technology (“DRM”) on the Big Six’s e-books,” the bookseller motion notes. “The restrictive DRM, in conjunction with the contracts with the Big Six, operates to protect Amazon’s e-reader monopoly. In addition, independent brick-and-mortar bookstores have been foreclosed from effective entry into the e-book market. As a result, consumers of e-books have been deprived of the benefits of choice and of the innovations that would surely have evolved had Amazon’s monopolies been challenged.”
In their motions to dismiss, both Amazon and publishers argued that the booksellers could not show “any actual adverse effect on competition” and that the suit was based on “naked conclusions that Amazon’s use of ‘device specific’ DRM technology harms competition.”
The booksellers, however, reply that Amazon and the publishers are either misreading the complaint, or attempting to “rewrite” it for the court, in order to facilitate a dismissal. In fact, what the publishers deem “implausible,” they state, will be confirmed by contracts and documents once produced. “The big six do not, and cannot, deny that they each entered into agreements with Amazon, and then, with full knowledge of the market and the technology being used and available, renewed those agreements regarding the DRM technology that was to be used on all of the e-books published by the big six and distributed by Amazon,” the booksellers state. “Discovery will reveal that there was indeed a meeting of the minds between the Big Six and Amazon.”
U.S. sales of corrugated cardboard packaging picked up in the first quarter of 2013 but are growing slowly, reflecting moderate and inconsistent demand for the consumer products that they contain, industry executives said.
Corrugated manufacturers in Texas, Wisconsin and Philadelphia said orders are growing steadily, particularly from the food & beverage and pharmaceuticals industries, and that demand appears to be stronger than it was in the fourth quarter of 2012.
A trade association reported growing sales in the first two months of the year, followed by a decline in March.
But one production measure of containerboard — the kind of paper used for making corrugated — suggested volatile demand and uncertainty about the strength of the economic recovery.
Metsä Wood, part of Metsä Group, will initiate a cost savings programme. The reasons for this are the unsatisfactory development of profitability over the last few years and the declining sales on the main market areas. With the programme, Metsä Wood aims to improve its competitiveness in the future.
Metsä Wood operations will be reorganised by merging the Plywood and Building Products business lines into a Building and Industry business line. The Timber and Upgrades business line will continue to do business in its existing form. Significant synergies will be sought from the combination of operations in the entire organisation.
During the past few years, the market in the UK has developed unfavourably. Operations have been previously adjusted in line with market conditions. The company is proposing to initiate new adaptation measures in all UK Timber and Upgrades business units. These measures could affect in a reduction of up to 150 jobs. At the same time, Metsä Wood will continue its activities to increase sales and to ensure more efficient customer service.
As part of the programme, Metsä Wood plans to divest the Casteljaloux sawmill, upgrading and distribution unit in France. The company has initiated a divestment process with the aim of finding a credible buyer for the unit and to divest the operations within the next two months. If a credible buyer is not found, Metsä Wood will initiate statutory labour negotiations for closing down the unit. These operations currently employ a total of 34 persons.
Brent crude fell to its lowest level in nine months and West Texas Intermediate dropped below $90 a barrel, as economic growth eased unexpectedly in China, the world’s second-largest crude consumer.
Brent declined as much as 2.5 percent to its weakest since July 13. China’s gross domestic product in the first quarter rose 7.7 percent from a year earlier, according to the National Bureau of Statistics. That compares with the 8 percent median forecast in a Bloomberg survey and 7.9 percent in the prior quarter. Nicolas Maduro was elected president of Venezuela, OPEC’s third-biggest oil producer.
This simply confirms the picture of a slowing economy” in China, said Guy Wolf, Global Head of Market Analytics at Marex Spectron Group in London, who predicts Brent may fall as low as $85 this quarter. “Globally, the picture is not healthy.”
Brent for May settlement, which expires today, fell as much as $2.56, or 2.5 percent, to $100.55 a barrel on the London- based ICE Futures Europe exchange, and traded at $100.67 at 11:13 a.m. local time. The more-active June future dropped $2.18 to $100.86 a barrel. The front-month European benchmark grade was at a premium of $12.46 to WTI futures.
Initially, the return of Saturday mail might be regarded as good news for some publishers, but the resumption of Saturday service has prompted USPS to explore rate hikes for all periodicals.
On the day the Postal Service announced it had cancelled plans to end Saturday mail, ABM Washington Representative Tom Carpenter and ABM Postal Counsel Jack Widener, as well as other postal stakeholders, met with Postmaster General Patrick R. Donahoe to discuss the future of the agency.
According to the Postmaster General, given that a postal reform bill still hasn't been passed, USPS felt five-day delivery was one of the agency's only paths to significant savings. Now that new legislative language makes it impossible for the agency to continue its plan, he said, USPS has to seek revenue elsewhere -- possibly in the form of exigent rate increases for all classes of mail and/or an increase for periodicals. While the end of Saturday service only affected a small segment of b-to-b print publishers, a rate hike will likely impact all print magazines.
"His message to us was that he has no other choice but to seek savings from labor costs and increase postal rates," said Carpenter. "Even after all the savings efforts of the last two years, and defaulting for the third year in a row on retiree health benefits, USPS will still be billions in the red at the end of the year."
In the meeting, the Postmaster General discussed increases for "underwater products," that is Postal Service products that have consistently failed to cover their costs, as well increases for all classes of mail. In the Postal Regulatory Commission's latest Annual Compliance Report, seven of the Postal Service's products were deemed "underwater," including periodicals. During fiscal year 2012, periodicals only covered 72 percent of its costs, meaning the “underwater” rate hike could be as much as 28 percent.
Ahlstrom, a global high performance fiber-based materials company, has completed the earlier announced EUR 7 million investments at its Stenay plant, France. With the investment, the plant successfully expanded its product portfolio of one-side coated papers for metalized labels and flexible packaging.
The grades produced at Stenay's paper machine 3 span now from 50 to 160 g/m². These coated papers can be used for metalized beer labels and flexible packaging applications such as biscuits, sweets, coffee bags, pharmacy, pet food bag outer liners, tea envelopes, tobacco pouches, as well as bundle wraps for yoghurt pots.
"By lowering the weight of a paper used for metalized labels, flexible packaging and other graphics and industrial applications, Ahlstrom responds to the need for lighter papers to reduce the weight of packaging and labels and consequently lower their environmental footprint," says Daniele Borlatto, EVP, Label and Processing.
Pearson has agreed to sell its 50% holding in BDFM in South Africa to Times Media Group (TMG) for an undisclosed sum.
BDFM is the publisher of some of South Africa’s leading business media including Business Day, BDLive, Financial Mail and Summit TV. TMG is Pearson’s existing partner in BDFM, and the sale takes TMG’s ownership of BDFM to 100%.
The transaction supports Pearson’s continued focus on global business news and analysis through the FT Group, and includes a long-term agreement to secure the editorial independence of the titles. The disposal is consistent with Pearson’s strategy of recent years and the sale of Recoletos in Spain, Les Echos in France and FT Deutschland.
Gap Inc. today reported that March 2013 net sales increased 7 percent compared with last year.
Net sales for the five-week period ended April 6, 2013 were $1.56 billion compared with net sales of $1.46 billion for the five-week period ended March 31, 2012. Due to the 53rd week in fiscal year 2012, March 2013 comparable sales are compared to the five-week period ended April 7, 2012. On this basis, the company’s comparable sales for March 2013 were down 1 percent compared with an 8 percent increase for March 2012.
Comparable sales by global brand for March 2013 were as follows:
•Gap Global: flat versus positive 7 percent last year
•Banana Republic Global: positive 1 percent versus positive 5 percent last year
•Old Navy Global: negative 2 percent versus positive 11 percent last year
Limited Brands, Inc. reported a comparable store sales increase of 3 percent for the five weeks ended April 6, 2013, compared to the five weeks ended April 7, 2012. The company reported net sales of $894.8 million for the five weeks ended April 6, 2013, an increase of 6% compared to net sales of $840.9 million for the five weeks ended March 31, 2012.
The company reported a comparable store sales increase of 3 percent for the nine weeks ended April 6, 2013, compared to the nine weeks ended April 7, 2012. The company reported net sales of $1.607 billion for the nine weeks ended April 6, 2013, compared to sales of $1.495 billion for the nine weeks ended March 31, 2012.
Rite Aid Corporation today reported net income for the fourth quarter and fiscal year ended March 2, 2013.
For the fourth quarter, the company reported revenues of $6.5 billion, net income of $123.1 million or $0.13 per diluted share and Adjusted EBITDA of $340.3 million or 5.3 percent of revenues.
For the full year, Rite Aid reported revenues of $25.4 billion, net income of $118.1 million or $0.12 per diluted share and Adjusted EBITDA of $1,128.4 million or 4.4 percent of revenues.
Same store sales for the quarter decreased 2.0 percent over the prior-year period, consisting of a 0.3 percent increase in the front end offset by a 3.1 percent decrease in the pharmacy. Pharmacy sales benefited from a 3.0 percent increase in the number of prescriptions filled in same stores, which was more than offset by an approximate 659 basis point negative impact from new generic introductions. Although new generic introductions have a negative impact on sales, they have a positive impact on gross profit. Prescription sales accounted for 66.5 percent of total drugstore sales and third party prescription sales were 96.6 percent of pharmacy sales.
Bed Bath & Beyond Inc. today reported net earnings of $1.68 per diluted share ($373.9 million) in the fiscal fourth quarter (fourteen weeks) ended March 2, 2013, an increase of approximately 14% versus net earnings of $1.48 per diluted share ($351.0 million) in the same quarter a year ago (thirteen weeks). Net sales for the fiscal fourth quarter (fourteen weeks) of 2012 were approximately $3.401 billion, an increase of approximately 24.5% from net sales of approximately $2.732 billion reported in the fiscal fourth quarter (thirteen weeks) of 2011. Comparable store sales in the fiscal fourth quarter of 2012 increased by approximately 2.5%, compared with an increase of approximately 6.8% in last year's fiscal fourth quarter.
During the fiscal fourth quarter of 2012, the Company repurchased approximately $305 million of its common stock, representing approximately 5.3 million shares. As of March 2, 2013, the remaining balance of the existing share repurchase program authorized in December 2012 was approximately $2.4 billion.
For the fiscal year (fifty-three weeks) ended March 2, 2013, the Company reported net earnings of $4.56 per diluted share ($1.038 billion), an increase of approximately 12% over net earnings of $4.06 per diluted share ($989.5 million) in the corresponding period a year ago (fifty-two weeks). Net sales for fiscal 2012 (fifty-three weeks) were approximately $10.915 billion, an increase of approximately 14.9% from net sales of approximately $9.500 billion in the corresponding period a year ago (fifty-two weeks). Comparable store sales for fiscal 2012 increased by approximately 2.7% compared with an increase of approximately 5.9% last year. Comparable store sales for the fiscal fourth quarter and fiscal year are based on 14 weeks and 53 weeks, respectively, and exclude Cost Plus, Inc. ("World Market") and Linen Holdings.
This year is unlikely to go down as a banner one for the advertising industry. According to marketing intelligence company Warc, global ad spending (based on 12 major markets) will only increase 3% in 2013, down a full percentage point from the company’s forecast from November 2012.
Already expected to be less robust than last year (which had the Olympics and a U.S. presidential election going for it to boost spending), further concerns about the global economy (particularly the debt crises in Europe, and economic slowdowns in China and India) as well as domestic spending cuts just coming into effect led to the downgrade, according to Suzy Young, data and journals director, at Warc.
"With few major political or sporting events this year, global advertising spend growth was always expected to be slower than in 2012,” Young says. “The Eurozone debt crisis also continues to depress growth both among member countries and abroad. To offset this, global ad spend will be reliant on a solid performance from the U.S. and strong growth from emerging markets."
Of the 12 major markets Warc forecasts, only Brazil and Japan were not subject to forecast downgrades, compared to the company’s 2013 reports. Though still slower than previously expected, Brazil, Russia, India and China (BRIC) will continue to be the fastest-growing markets, with increases of 9.5%, 12.4%, 7.9% and 9% growth, respectively.
Mobile activation in the Top 100 U.S. magazines has dramatically changed from 2011 to 2012. Several compelling patterns have emerged, notably the increasing popularity of issue-wide mobile programs and magazine branded scanning apps, particularly those leveraging augmented reality, image recognition, and invisible watermarking technology. Over the last two years that Nellymoser has tracked the use of print to digital content in magazines, there has been overwhelming growth in mobile activations used in both editorial and advertising content.
This initiative was designed to amass the most comprehensive picture of how mobile is being deployed in the U.S. magazine market. Every page was examined, every mobile enhancement was launched, and the data was collected on both advertising and editorial pages. Nellymoser uses this data for both industry-wide benchmarking and to inform the design and implementation of print to digital experiences.
American Forest & Paper Association President and CEO Donna Harman issued the following statement regarding the United States Postal Service’s (USPS) decision to postpone elimination of Saturday delivery.
“We are pleased with today’s announcement that the USPS will delay its plans to eliminate Saturday mail delivery pending further congressional action, as this reduction in service would have been short-sighted and harmful to their ability to serve customers.
“AF&PA and its members will continue to engage with both the Postal Service and Congress as they seek to improve the agency’s financial viability with a more comprehensive legislative solution.”
The USPS’s Board of Governors announced this morning their decision to not proceed with a move to five-day delivery of non-parcel mail in August 2013, as previously announced.
This decision was made given the Continuing Resolution recently passed through Congress directing the USPS to maintain six-day delivery for all mail. As a consequence, given the persistent low liquidity of the agency, the Board has directed management to review and consider all available options to reduce costs or increase revenue. This specifically also includes an exigent rate case, as I learned from a USPS officer today.
The Board’s prepared statement noted the following:
The Board continues to support the transition to a new national delivery schedule…It is not possible for the Postal Service to meet significant cost reduction goals without changing its delivery schedule – any rational analysis of our current financial condition and business options leads to this conclusion. Delaying responsible changes to the Postal Service business model only increases the potential that the Postal Service may become a burden to the American taxpayer, which is avoidable.
Costco Wholesale Corporation today reported net sales of $9.67 billion for the month of March, the five weeks ended April 7, 2013, an increase of seven percent from $9.07 billion during the similar period last year.
For the thirty-one weeks ended April 7, 2013, the Company reported net sales of $61.02 billion, an increase of eight percent from $56.34 billion during the similar period last year.
FEFCO (European Federation of Corrugated Board Manufacturers) is proud to announce that a further decrease of the Carbon Footprint by 4,8% has been achieved over the past three years (from 2009 to 2011), on top of a reduction by 11,7% from 2006 to 2008. During the last three years, the average carbon footprint of Corrugated was reduced from 784kg/t to 746 kg/t. The main reason is a considerable drop in electricity usage, mainly due to the reduction of electricity bought by kraftliner producers.
Pulp and paper mills with kraft cooking, as used by all kraftliner producers, have invested heavily the last 4 to 5 years on the energy conservation side of their processes. New big boilers for bark and other biofuels combined with steam turbines are used for electricity production. The Corrugated industry intensifies the use of recycled fibers for the production of Corrugated Packaging: the input of recycled paper into new corrugated increased from 82% in 2009 to 85% in 2012. The Corrugated Industry and its suppliers continue exploring ways to reduce the environmental impact of their products. Corrugated Packaging proves again to be a sustainable material, which is highly appreciated both by the supply chain and consumers. According to recent studies, consumers prefer paper-based packaging over other material. Corrugated is economical, can be 100% recycled and perfectly protects goods on their entire journey to the consumer.
H.I.G. Capital is nearly ready to box up its latest deal.
The Miami firm is in the final stages of wrapping up a deal for Caraustar Industries Inc., which will see the once-bankrupt packaging products maker change hands from Wayzata Investment Partners, said a person close to the transaction.
The deal is expected to close by the end of the month and will include a debt package provided by Credit Suisse Group, Goldman Sachs Group Inc. and Jefferies Co., the person said.
Jefferies is advising Austell, Ga.-based Caraustar on the transaction.