Paperclips Blog | Mercer International Results

  • 07.26.2012

    International Paper Reports Second Quarter Earnings

    International Paper today reported second-quarter 2012 net earnings attributable to common shareholders totaling $134 million ($0.31 per share) compared with net earnings of $188 million ($0.43 per share) in the first quarter of 2012 and $219 million ($0.51 per share) in the second quarter of 2011. Amounts in all periods include the impact of special items.

    Earnings from continuing operations and before special items in the second quarter of 2012 totaled $203 million ($0.46 per share), compared with $247 million ($0.57 per share) in the first quarter of 2012 and $338 million ($0.79 per share) in the second quarter of 2011. Earnings from continuing operations and before special items were impacted by seasonally peak maintenance outage expenses and an unfavorable non-cash foreign exchange swing at our Ilim joint venture in Russia. Partially offsetting these items were Temple-Inland integration benefits and synergies tracking ahead of plan as well as modest improvements in costs and pricing.

    Quarterly net sales were $7.1 billion compared with $6.7 billion in the first quarter of 2012 and $6.6 billion in the second quarter of 2011.

    Operating profits were $426 million in the second quarter of 2012, down from $462 million in the first quarter of 2012, both of which included special items.

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  • 07.26.2012

    Graphic Packaging Holding Company Reports Second Quarter 2012 Results

    Graphic Packaging Holding Company, a leading provider of packaging solutions to food, beverage and other consumer products companies, today reported Net Income for second quarter 2012 of $42.4 million, or $0.11 per share, based upon 397.8 million weighted average diluted shares.  This compares to second quarter 2011 Net Income of $32.1 million, or $0.08 per share, based upon 384.5 million weighted average diluted shares.

    Net Sales increased 2.9% to $1,111.9 million during second quarter 2012, compared to second quarter 2011 Net Sales of $1,080.7 million.  The $31.2 million increase resulted from $25.2 million of favorable volume/mix and $12.0 million of higher pricing, partially offset by $6.0 million of unfavorable exchange rates.

    On a segment basis, Paperboard Packaging sales, which comprised 83.5% of total second quarter Net Sales, increased 0.2% compared to the second quarter of 2011.  Net sales in the Flexible Packaging segment increased 19.0% compared to the second quarter of 2011.  The increase was primarily the result of the addition of Delta Natural Kraft, LLC and Mid-America Packaging, LLC on December 8, 2011 along with inflationary price recovery. 

    EBITDA for second quarter 2012 was $171.2 million.  Excluding $5.2 million of special charges primarily related to Graphic Flexible Packaging integration costs, Adjusted EBITDA was $176.4 million.  This compares to second quarter 2011 EBITDA of $147.6 million and Adjusted EBITDA of $150.1 million.

    When comparing against the prior year quarter, Adjusted EBITDA in the second quarter of 2012 was positively impacted by $29.1 million of improved operating performance and cost reduction initiatives, $12.0 million of higher pricing and $5.1 million of favorable volume/mix.  These benefits were partially offset by $18.1 million of cost inflation and $1.8 million of unfavorable exchange rates/other.

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  • 07.26.2012

    Country Sampler Tweaks Color Correction, Saves Big

    For image-heavy publications, the color-correction stage is a critical pre-press process and, if adjusted for maximum precision, can be an area where publishers can save big on printing costs.

    Karen Elston Davis, prepress manager for Country Sampler Group, began a quest last year to find a method that could dramatically decrease color correction time while improving quality and color balance. The magazine manages 800-1,000 images in an eight-week turnaround. Images are an important component to the brand’s identity, which caters to readers seeking country-style home tours, design tips and information about antiques, collectables and folk art. Efficiently managing hundreds of images is essential for the group, who wants to focus on new work, like adding various treatments to images, or enhancing images for digital editions.

    Elston Davis settled on a Photoshop plug-in called ICEit! by FineEye Color Solutions, which captures significantly more original image color when converting from RGB to CMYK. The plug-in replaces default color separation settings and allows a user to complete an accurate color correction with one simple click.

    Elston Davis states that the plug-in has saved “a ton of time doing color revision” and adds that the design team doesn’t “have to put out a second proof.” According to Elston Davis, color correction for Country Sampler has decreased from 60-80 percent down to 10-15 percent.

    It almost goes without saying that printing fewer error-filled copies can save time, paper and ink. What is less obvious is that it has the potential to cut costs and increase readership. Country Sampler typically runs off about 550,000 copies, and until recently, anywhere from 80,000-130,000 of those copies had color problems. Since implementing the plug-in, that number has been significantly reduced to 30,000-50,000 flawed copies—a reduction of nearly two-thirds. The magazine has gained tens of thousands of quality usable books that can be provided to subscribers and newsstand customers. More copies mean potentially more readers, something every publisher should welcome.

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  • 07.26.2012

    EURO-GRAPH Publishes June Monthly Statistics of the European Graphic Papers Industry

    Total European shipments of graphic papers was down 6.8% vs. June 2011 and is down 4.6% year-to-date.

    Total European shipments of Newsprint was down 6.7% vs. June 2011 and is down 4.9% year-to-date.

    Total European shipments of SC-Magazine grades was down 11.5% vs. June 2011 and is down 3.6% year-to-date.

    Total European shipments of Coated Mechanical Reels was down 14.8% vs. June 2011 and is down 7.0% year-to-date.

    Total European shipments of Uncoated Mechanical was down 10.3% vs. June 2011 and is down 6.6% year-to-date.

    Total European shipments of Coated Woodfree was up 2.3% vs. June 2011 and is down 3.0% year-to-date.

    Total European shipments of Uncoated Woodfree was down 2.2% vs. June 2011 and is down 3.5% year-to-date.

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  • 07.26.2012

    Canfor Pulp Products Inc. Reports Results for Second Quarter of 2012

    Canfor Pulp Products Inc. today reported its second quarter 2012 results.

    Net income for the second quarter of 2012 was $3.3 million, or $0.05 per share, compared to net income of $10.3 million, or $0.13 per share for the first quarter of 2012 and net income of $48.2 million, or $0.68 per share for the second quarter of 2011. For the six months ended June 30, 2012, the Company’s net income was $13.6 million, or $0.16 per share compared to $98.9 million, or $1.39 per share for the six months ended June 30, 2011.

    During the first quarter of 2012, Canadian Forest Products Ltd. (“Canfor”) exchanged its 50.2% interest in Canfor Pulp Limited Partnership (“the Partnership”) for an equivalent interest in CPPI. As a result of the exchange, CPPI’s interest in the Partnership increased from 49.8% to 100%. Unless otherwise noted, the discussion of the results for the comparative periods prior to the quarter ended March 31, 2012 refers to the results of the Partnership. For the quarter ended March 31, 2012, and all subsequent quarters, the results of CPPI include the results of the Partnership.

    The Company reported operating income of $10.4 million for the second quarter of 2012, compared to $11.5 million in the first quarter of 2012, as weaker results in the pulp segment, substantially related to maintenance outages at the Company’s mills, were partially offset by improved earnings in the paper segment.

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  • 07.26.2012

    Oil Falls for First Day in Three as U.S. Stockpiles Increase

    Oil dropped for the first time in three days in New York on concern that rising stockpiles signal faltering demand in the U.S., the world’s biggest crude consumer.

    Futures slid as much as 0.7 percent, erasing a 0.5 percent gain yesterday. Crude inventories climbed by 2.7 million barrels last week, the first increase in five weeks, data from the Energy Department showed. Supplies were forecast to decline 1 million barrels, according to a Bloomberg News survey. Sales of new U.S. homes unexpectedly decreased in June from a two-year high, a Commerce Department report showed.

    “We’re stuck in the $80s until we get a little more confidence around global growth prospects,” Michael McCarthy, a chief market strategist at CMC Markets in Sydney, said in a phone interview. “I would expect, especially given the inventory numbers, oil to gravitate back toward the middle of the $81.50 to $88.50 range over the next few trading days.”

    Crude for September delivery fell as much as 59 cents to $88.38 a barrel in electronic trading on the New York Mercantile Exchange and was at $88.60 at 2:54 p.m. Singapore time. The contract yesterday rose 47 cents to $88.97, the highest close since July 20. Prices are 10 percent lower this year.

    Brent oil for September settlement on the London-based ICE Futures Europe exchange slid as much as 59 cents, or 0.6 percent, to $103.79 a barrel.

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  • 07.26.2012

    2012 AF&PA Sustainability Report Shows Significant, Measurable Progress on Better Practices, Better Planet 2012 Goals

    The American Forest & Paper Association (AF&PA) today released the results of its biennial Sustainability Report, which showed that the U.S. paper, pulp and wood products industry has made significant, measurable progress toward achieving the goals of its Better Practices, Better Planet 2020 sustainability initiative.

    Better Practices, Better Planet 2020 symbolizes the industry’s commitment to sustainability and is one of the most extensive collections of quantifiable sustainability goals for a major U.S. manufacturing industry.  Enhancing this already aggressive collection of goals, AF&PA is establishing a goal to decrease the amount of water used in pulp and paper mills by 12 percent from 2005 to 2020 by measuring the water discharge.

    The progress made toward reaching each goal is reported in the 2012 AF&PA Sustainability Report, which includes:

    Increased paper recovery to 66.8 percent in 2011, nearly doubling our rate of paper recovery since 1990. 
    Reduced greenhouse gas (GHG) emissions intensity by 10.5 percent since 2005.  
    Reduced Occupational Safety & Health Administration case incident rates by 24 percent since 2006. 
    Improved energy efficiency in purchased energy use by 8.1 percent since 2005, adding to the fact that nearly two-thirds of the energy used in our manufacturing facilities is produced through carbon-neutral biomass
    Increased fiber procured from certified forestlands to 24 percent and increased fiber procured through certified fiber sourcing programs to 96 percent from 87 percent in 2005.  AF&PA members also continued to work with governments and stakeholders on effective policies to combat illegal logging.  
    Reduced water used at member pulp and paper mills by 6 percent since 2005.  AF&PA members have established a new goal to reduce water used in member pulp and paper mills by 12 percent by 2020.

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  • 07.26.2012

    Rayonier Reports Strong Second Quarter 2012 Results

    Rayonier today reported second quarter 2012 net income of $69 million, or 54 cents per share, compared to $56 million, or 45 cents per share, in the prior year period. For the first six months, net income increased to $123 million, or 96 cents per share, compared to $115 million, or 92 cents per share, in 2011.

    In Forest Resouces, second quarter sales of $53 million and operating income of $8 million were $4 million below the prior year period. Year-to-date sales of $105 million were consistent with the prior year, while operating income of $16 million declined $7 million. In the Pacific Northwest, 2012 results were negatively impacted by lower prices and volumes due to weaker Asian demand, and higher logging costs. Our New Zealand joint venture was also impacted by lower export demand. The 2011 results included a $3 million loss for damage from forest fires in the Southeast.

    In Real Estate, second quarter sales of $12 million were consistent with the prior year period, while operating income of $6 million increased $1 million. Year-to-date sales of $24 million were $2 million below 2011, and operating income of $12 million was consistent with the prior year. While 2012 volumes were comparable to the prior year periods, margins improved due to geographic property mix.

    In Performance Fibers, second quarter sales of $255 million were $22 million above the prior year period, while operating income of $84 million was $13 million higher. Year-to-date sales of $505 million were $21 million above 2011, while operating income of $164 million increased $17 million. Stronger cellulose specialties prices more than offset increased production costs and a decline in absorbent materials prices due to soft markets.

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  • 07.26.2012

    Cabela's Inc. Reports Strong Second Quarter 2012 Results

    Cabela's Incorporated today reported strong financial results for second quarter fiscal 2012.

    For the quarter, total revenue increased 11.6% to $627.3 million; Retail store revenue increased 16.9% to $384.7 million; Direct revenue decreased 0.7% to $158.5 million; and Financial Services revenue increased 12.8% to $79.3 million. For the quarter, comparable store sales increased 4.7%. Net income increased to $33.9 million compared to $21.7 million and earnings per diluted share were $0.47 compared to $0.31, each compared to the year ago quarter.

    "This strong performance is Company-wide and shows that our strategic initiatives have generated major improvements in our business," said Tommy Millner, Cabela's Chief Executive Officer. "Every key line of our income statement benefited. Retail and Direct channel revenue, merchandise margin, operating margin, expenses as a percentage of revenue, inventory turns, earnings per share and return on capital all improved."

    "Retail revenue growth was particularly encouraging," Millner said. "Comparable store sales accelerated in the quarter and increased 4.7%. It's great that our smaller next-generation stores continue to generate higher revenue and profit per square foot than our legacy stores. Additionally, each of our three new stores opened this year exceeded our expectations in the quarter, which reinforces our decision to accelerate retail store expansion."

    "Our Direct channel experienced its best revenue performance in eight quarters," Millner said. "Direct revenue improved significantly from the first quarter, declining just 0.7% due to stronger growth in Internet sales and reduced declines in call center sales."

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  • 07.26.2012

    Meredith Reports Fiscal 2012 Fourth Quarter And Full Year Results

    Meredith Corporation, the leading media and marketing company serving American women, today reported fiscal 2012 second quarter earnings per share of $0.70, compared to $0.88 in the year-ago period.  Revenues were $329 million, compared to $366 million. Meredith recorded $21 million, or $0.28 per share, less of political advertising revenues in the second quarter of fiscal 2012 than in the year-ago period, which is expected in an off-election year.

    "Our Local Media Group delivered an industry-leading 9 percent gain in non-political advertising revenues during the second quarter of fiscal 2012," said Meredith Chairman and Chief Executive Officer Stephen M. Lacy.  "While the advertising market remained challenging for our National Media Group, we're seeing an improving trend as we look to early calendar 2012, particularly in the food and home advertising categories."

    Lacy noted Meredith's Total Shareholder Return financial strategy, announced on October 25, has been very well received by the investment community.  Key elements include (1) A 50 percent annual dividend increase to $1.53 from $1.02 per share that produced yields of 5 to 6 percent during the quarter; (2) A new $100 million share repurchase authorization; and (3) Ongoing strategic investments to drive incremental revenue and profit growth over time, such as today's announcement that Meredith would acquire Allrecipes.com from The Reader's Digest Association, Inc.

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  • 07.25.2012

    Two Sides U.S. and the Forest Legality Alliance Collaborate

    Two Sides U.S. has joined the Forest Legality Alliance (FLA), a joint effort of WRI and the Environmental Investigation Agency, supported by the United States Agency for International Development and companies in the paper and forest products sector. With goals to reduce illegal logging and eliminate illegal fiber in paper products, FLA’s diverse membership includes organizations such as Staples, Ikea, and the World Business Council for Sustainable Development, the American Forest and Paper Association and the Retail Industry Leaders Association.

    Forest Legality Alliance staff will help provide training and education services to Two Sides U.S. member companies on topics related to illegal logging and associated trade, including legal requirements in global marketplaces and the sourcing of legal and sustainable paper products. FLA will also provide peer review for Two Sides materials including web content, blogs, printed publications and promotional materials.

    “This partnership is a perfect fit for Two Sides U.S. because the FLA shares our commitment to sustainability and to science-based environmental improvement,” says Two Sides U.S. President Phil Riebel. “FLA’s global reach, expertise in paper-related issues and solutions-based approach to the environment will not only benefit our members, but also will strengthen our mutual efforts to promote the responsible production and use of paper. When fiber is sourced legally from well managed forests and paper is manufactured responsibly, print on paper can be a sustainable way to communicate because it’s renewable and recyclable.”

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  • 07.25.2012

    Avery Dennison Announces Second Quarter 2012 Results and $100 Million Restructuring Program

    Avery Dennison Corporation today announced preliminary, unaudited second quarter 2012 results. All non-GAAP financial measures referenced in this document are reconciled to GAAP in the attached tables. Unless otherwise indicated, the discussion of the company’s results is focused on its continuing operations.

    “Second-quarter results were in line with our expectations, and we are on track for full-year earnings growth and free cash flow within the ranges of our guidance,” said Dean Scarborough, Avery Dennison chairman, president and CEO. “We continued to deliver on our commitment to return more cash to shareholders, repurchasing more than two million shares during the quarter.

    “We are aggressively implementing the next phase of our restructuring initiative to help us deliver on our financial targets for double-digit earnings growth and higher returns,” Scarborough said. “Our near-term target is to achieve more than $100 million in annualized savings by mid-2013. The leaner cost structure that will result will enhance our overall competitive position and strengthen our ability to increase returns even in an uncertain economic environment.”

    Label and Packaging Materials sales increased mid-single digits compared to prior year. Graphics and Reflective Solutions sales declined low single digits compared to prior year.

    Operating margin declined 20 basis points to 8.4% due to higher restructuring costs. Adjusted operating margin improved 10 basis points as the benefit from higher volume more than offset higher employee-related expenses, including incentive compensation.

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  • 07.25.2012

    Courier Reports Third-Quarter Results

    Courier Corporation, one of America’s leading book manufacturers and specialty publishers, today announced results for the quarter ended June 23, 2012, the third quarter of its 2012 fiscal year. Revenues were $58.9 million, down 5% from last year’s third-quarter revenues of $61.9 million. Net income was $1.6 million or $.13 per diluted share, including severance costs of $235,000 in conjunction with the previously announced consolidation of one-color printing operations, versus a loss of $3.1 million or $.26 per diluted share in the third quarter of fiscal 2011, including a non-cash, pre-tax impairment charge of $8.6 million, or $.43 per diluted share. Excluding the impairment charge related to Research & Education Association (REA) in the wake of the Borders Group bankruptcy, adjusted net income for the third quarter of fiscal 2011 was $2.0 million or $.17 per diluted share.

    For the first nine months of fiscal 2012, Courier revenues were $184.2 million, down slightly from $185.7 million in fiscal 2011. Net income for the year to date was $3.5 million or $.29 per diluted share, including pretax charges totaling $1.8 million related to severance and post-retirement benefit costs and a first-quarter pretax gain of $0.6 million from the sale of certain non-operating assets. For the first nine months of fiscal 2011, the company’s net loss was $6.3 million or $.52 per diluted share, including second-quarter restructuring costs and a bad-debt provision related to Borders as well as the third-quarter impairment charge. Excluding those items for both periods, adjusted net income for the first nine months of fiscal 2012 was $4.2 million or $.35 per diluted share, compared to $4.0 million or $.34 per diluted share for the first nine months of fiscal 2011. Details for these items can be found in the tables at the end of this release.

    Third-quarter results in Courier’s book manufacturing segment were affected by a shift in ordering patterns in the education market, with textbook publishers tightening their inventory management in the current economy by reducing print quantities and timing book production to the start of each semester. As a result, while education sales picked up as the quarter progressed, revenues were down from the previous year. In Courier’s specialty book publishing segment, sales were lower at two of its three businesses, but the continued streamlining of publishing operations enabled the segment to narrow its losses from the prior year.

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  • 07.25.2012

    U.S. printing and writing paper shipments in June down 8% year-over-year

    According to the American Forest & Paper Association’s June 2012 Printing-Writing Paper Report, total printing-writing paper shipments decreased 8% in June compared to June 2011.  Shipments for coated free sheet and uncoated mechanical grades posted double-digit year-over-year decreases compared to last June.  U.S. purchases (shipments + imports – exports) of printing-writing papers also decreased 8% in June.  Total printing-writing paper inventory levels decreased 4% from last month, primarily due to double-digit decreases among the mechanical grade papers.

    Additional key findings include:

    Purchases of coated mechanical (CM) papers are up slightly compared to June 2011, which is the second consecutive year-over-year increase.
    Shipments of uncoated free sheet (UFS) papers are down year-over-year, which is the second-largest decrease in past 20 months.
    Shipments of coated free sheet (CFS) papers are at the highest level since November 2011 but still decreased year-over-year.
    Uncoated mechanical (UM) paper shipments are down double-digits compared to year-ago but reached the highest point in the past five months.

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  • 07.25.2012

    Oil Near Lowest in a Week on U.S. Stockpile Gain, China Concern

    Oil traded near its lowest in a week in New York on speculation that an increase in U.S. crude stockpiles signaled slowing demand in the world’s biggest consumer of the commodity.

    Futures slid as much as 0.8 percent after the industry- funded American Petroleum Institute said inventories rose 1.35 million barrels last week. Year-to-date gasoline demand in the U.S. is 4.4 percent below 2011 levels, MasterCard Inc. (MA) said yesterday. Oil pared losses as the dollar weakened for the first time in six days against the euro, bolstering the appeal of commodities. Prices are too high for the “fragile” global economy, Fatih Birol, the International Energy Agency’s Chief Economist, said in an interview with Bloomberg Television.

    “Demand is looking soft, and gasoline consumption in the U.S. is still weak,” said Carsten Fritsch, an analyst at Commerzbank AG in Frankfurt, who estimates Brent should slide toward $100, based on physical supply and demand. “The outlook right now is neutral to bearish.”

    Crude for September delivery decreased as much as 70 cents to $87.80 a barrel in electronic trading on the New York Mercantile Exchange. It was at $88.73 at 10:48 a.m. London time. Crude fell yesterday as low as $87.43, its weakest since July 17. Prices are down 10 percent this year.

    Brent oil for September settlement on the London-based ICE Futures Europe exchange fell as much as 65 cents, or 0.6 percent, to $102.77 a barrel.

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  • 07.25.2012

    Food News Media Launches B-To-B Restaurant Title FSR

    Nothing beats a well-rounded product platform. So says Greg Sanders, group publisher of Food News Media, which just launched a new print title called FSR that targets the full-service restaurant industry and is designed to compliment an existing Web-based brand called Restaurant Management, which will soon be rebranded to match the magazine.

    The new magazine, which will debut in November, will have an initial circulation of 24,000 and will be published bimonthly.

    Food News Media has targeted the quick-service, or fast-food, restaurant market with QSR since 1997. With the launch of FSR, Sanders says the company now targets the two main industry verticals. While Restaurant Management was first launched as a digital platform to serve the FSR market, the company quickly determined there needed to be another facet. "What we discovered is that while digital has grown, it works best when it's coupled with print," he says. 

    "This might sound esoteric, but the restaurant industry, even in a downturn, continues to innovate with new products, menu items and concepts," he says. "We believe there's room in that space for reporting on those innovations. We were doing that with the digital platform, but print is still, from our experience, a highly valued commodity both for marketers and for readers. If we're going to have a complete offering, print has to be a part of it."

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  • 07.25.2012

    MWV Reports Second Quarter Sales and Earnings Growth

    MeadWestvaco Corporation, a global leader in packaging and packaging solutions, reported a 3.5 percent sales increase for the second quarter of 2012, reflecting increased volumes of higher value products in targeted packaging and specialty chemical end markets, as well as increased land sales.

    Income from continuing operations of $78 million, or $0.44 per share ($82 million or $0.46 per share ex-items) was up 13 percent versus the prior year. The company’s profit improvement was driven primarily by higher volumes, pricing and product mix improvement, productivity gains, and higher earnings from land sales.

    Sales from continuing operations in the second quarter of 2012 were $1.42 billion compared to $1.38 billion in the second quarter of 2011. Income from continuing operations in the second quarter of 2012 was $78 million, or $0.44 per share, and included after-tax restructuring charges of $4 million, or $0.02 per share. Income from continuing operations in the second quarter of 2011 was $69 million, or $0.40 per share, and included after-tax restructuring charges of $5 million, or $0.03 per share.

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  • 07.25.2012

    NPD: Last-minute back-to-school spending on the rise

    Once again, consumers are putting off back-to-school shopping until the last minute, but retailers can take solace in the fact that they intend to spend more this year.
     
    According to NPD's survey, 31% of respondents said they plan to spend more this year, compared with 22% who made that claim in 2011. The number of consumers who plan to spend less went from 38% in 2011 to 24% this year, while those who plan to spend the same rose from 40% to 46%.
     
    When it comes to when they plan to shop, the numbers were essentially the same from 2011 to 2012. This year, 37% shoppers said they will finish their back-to-school shopping by Aug. 1 compared with 38% from the year before. This year, 58% of consumers plan to have their shopping done by Sept. 1, compared with 57% for the prior year.
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  • 07.25.2012

    Bag printing gets a digital upgrade

    In the seed bag printing business, accuracy is key. A single mistake—the wrong label on the wrong bag, smudged ink, illegible text—could mean a full season of hard work lost. From research to distribution, the seed production process can take up to two years, making coding and marking the bag critical parts of the quality control process.
     
    For companies like Cashwell and Jones, a small seed conditioning, bagging, and printing company in Mt. Olive, NC, bag coding can be a challenge. But that challenge recently became a lot easier when the company turned to the BagJet 1300 from RSI and the combined power of RSI and HP thermal ink-jet technology.
     
    RSI Systems is well known for its innovative product coding technology and integration with reliable HP thermal ink-jet printheads. “We develop whole solutions,” says David Don, president of RSI, “and we use HP technology in our solutions where HP offers the best print performance.” The combination has helped RSI break into new areas of business—including printing for lumber, case coding, and the bag printing industry.
     
    Today the rapidly growing seed trade industry makes up a large percentage of RSI’s customer base. For years, the industry had struggled with the challenge of printing mandatory data on the unstable, porous surface of seed bags.
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  • 07.25.2012

    Orchids Paper Products 2nd Quarter Earnings Up on Higher Shipments, Lower Costs

    Orchids Paper Products Company today reported second quarter 2012 financial results.

    Summary:

    Net sales of converted product in the second quarter of 2012 were $22.3 million, an increase of $3.6 million, or 19%, over the prior year quarter. Net sales of converted product on a year-to-date basis were $45.9 million, an increase of $9.2 million, or 25%, over the prior year period.
    Total net sales in the second quarter of 2012 increased 8% to $25.3 million, compared with $23.4 million in the same period in 2011. On a year-to-date basis, total net sales increased $4.9 million, or 11%, to $51.0 million.

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  • 07.25.2012

    Mueller Industries, Inc. Reports Second Quarter 2012 Earnings

    Mueller Industries, Inc. announced today that Mueller's net income in the second quarter of 2012 was $17.9 million, or 47 cents per diluted share. This compares with net income of $22.3 million, or 59 cents per diluted share, for the same period of 2011. Net sales for the second quarter of 2012 were $594.1 million compared with $652.9 million in the second quarter of 2011. Of the decrease in net sales, approximately $51.6 million was attributable to lower copper and other raw material costs that impact the selling prices of our products. Copper prices decreased to an average of $3.55 per pound in the second quarter of 2012 versus $4.16 per pound in the same quarter of 2011.

    Second Quarter Financial and Operating Highlights
    The Plumbing & Refrigeration segment posted operating earnings of $22.6 million on net sales of $331.7 million, which compares with prior year earnings of $24.8 million on net sales of $347.1 million. The decrease in earnings was due to slightly lower spreads.

    The OEM segment posted operating earnings of $15.1 million during the second quarter of 2012 on net sales of $268.6 million, which compares with operating earnings of $18.8 million on net sales of $314.1 million for the same period in 2011. Unit volumes decreased somewhat and spreads were slightly lower.

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  • 07.25.2012

    U.S. Postal Service Launches Express Mail Padded Flat Rate Envelope

    The best deal in shipping just added a bit more cushion as the U.S. Postal Service has introduced the first Express Mail Padded Flat Rate Envelope.
     
    The new envelope measures 9 1/2-by-12 1/2 inches and can be ordered exclusively online and free of charge at usps.com beginning Aug. 2. It is ideal for sending merchandise that requires a little extra padding to almost anywhere in the country – overnight – $17.75 for commercial or online customers.
     
    “The Express Mail Padded Flat Rate Envelope is just like the Priority Mail version – only it gets there faster,” said Gary Reblin, vice president, Domestic Products. “It’s a great option for shippers who need to get lightweight items to their destination overnight because it offers businesses and consumers the great combination of convenience, speed and value. Flat-rate pricing saves time and effort on mail preparation and makes it possible to more accurately predict shipping costs.”
     
    The Express Mail Padded Flat Rate Envelope is the latest addition to the expanding Express Mail Flat Rate product line, which also includes an Express Mail Flat Rate Envelope and an Express Mail Legal Flat Rate Envelope, both retailing for $18.95, and a new Express Mail Flat Rate Box launched last January retailing for $39.95.
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  • 07.25.2012

    A 'Prime' opportunity for recycled plastics

    A three-year long pan-European project to produce high value plastic items from the lowest grade waste material is on the verge of developing commercially viable products.

    Titled 'Prime' – Plastic Recyclate Injection Moulding Engineering – the project is a consortium of 10 partners from Europe, including universities, research centers and SMEs.

    It proposes to use mixed polymer waste – effectively residue from already-recycled plastics – to manufacture high value products for use in infrastructure projects such as flood defenses and railways, as well as automotive and aerospace sectors.

    The aim is to make strong and versatile products that ape the properties of timber or aluminum, said Steve Morgan, Prime's dissemination and exploitation manager.

    Morgan said the first two years of the 36-month project project had been about "research and investigation".

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  • 07.25.2012

    RockTenn Reports Results Third Quarter Fiscal 2012 Earnings

    RockTenn today reported earnings for the quarter ended June 30, 2012 of $0.81 per diluted share and adjusted earnings of $0.95 per diluted share.

    Net sales of $2,303.2 million for the third quarter of fiscal 2012 increased $921.1 million over the third quarter of fiscal 2011, primarily as a result of the May 27, 2011, Smurfit-Stone acquisition.
    Segment income was $159.3 million up $13.6 million or 9.3% over the prior year quarter after adjusting the prior year quarter to eliminate $55.4 million of pre-tax acquisition inventory step-up. The increase was primarily a result of the Smurfit-Stone acquisition and increased profitability in our Consumer Packaging segment.
    RockTenn’s restructuring and other costs and operating losses and transition costs due to plant closures, net of related noncontrolling interest were $0.14 per diluted share after-tax, for the third quarter of fiscal 2012. These costs consisted primarily of $7.5 million of pre-tax integration and acquisition costs, including professional services, employee and other costs, $6.2 million of pre-tax facility closure charges primarily related to corrugated container plants acquired in the Smurfit-Stone Acquisition, the permanent shutdown of the medium machine at Hodge, Louisiana containerboard mill, net of a gain on sale of our Columbus, Indiana laminated converting facility and $1.9 million of pre-tax operating losses and transition costs primarily related to corrugated container plants acquired in the Smurfit-Stone acquisition.

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  • 07.24.2012

    UPS 2Q Earnings Per Share Up 7.5 Percent

    UPS today announced second quarter 2012 diluted earnings per share of $1.15, a 7.5% improvement over the 2011 adjusted results. U.S. Domestic operating profit expanded $122 million or 12% over the prior-year period. On a reported basis, diluted earnings per share increased 5.5% and U.S. Domestic operating profit rose 14%.

    "Increasing uncertainty in the United States, continuing weakness in Asia exports and the debt crisis in Europe are impacting projections of economic expansion," said Scott Davis, UPS chairman and CEO. "Throughout its history, UPS has maintained its strength in all economic cycles and we are making the adjustments necessary to respond to today's challenging conditions."

    U.S. Domestic revenue increased 4.1% over the prior-year period, driven by a 3.5% gain in package volume. Operating profit jumped more than 12% over 2011 adjusted results. Operating margin expanded 100 basis points to 14.1%, aided by volume growth, improved efficiency, higher base rates and a benefit from the timing of the fuel surcharge.

    On a reported basis, operating profit improved 14% and operating margin climbed 120 basis points over the prior-year period.

    Volume grew across all products as ground rose 3%, UPS Next Day Air increased 5% and deferred air climbed 8.6%. The majority of the improvement was driven by large e-commerce customers shipping low-weight residential packages.

    Average revenue per package increased 0.6%, as higher base rates were mostly offset by changes in customer and product mix.

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  • 07.24.2012

    Twin Rivers Paper Company Simplifies Label Selection Process

    Twin Rivers Paper Company, a leader in lightweight specialty packaging, label and publishing papers, releases a swatchbook for wet-strength label papers that simplifies the label selection process. This Alliance® wet-strength label swatchbook offers an at-a-glance look at Twin Rivers’ portfolio of label papers. These papers offer customers a broad range of basis weights, wet-strength formulations and performance characteristics, ensuring excellent performance throughout the supply chain.

    Alliance® wet-strength label papers are the optimal choice for beer, water and other bottling applications. With their high-gloss coating, these papers increase surface smoothness and ink receptivity. Their wet-opacity retention and dimensional-sheet stability provide much needed durability for moist environments, and their reverse-side treatment optimizes adhesive retention during the high-speed bottling and label process.

    “Our goal is to simplify the selection process for our customers by providing a useful guide to our broad range of wet-strength label products,” says Dave Deger, Director of Business Development and Marketing.

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  • 07.24.2012

    Plum Grove Printers Books a 22-Percent Sales Increase

    Amid the lingering effects of the recession and a difficult business environment for the printing industry, Plum Grove Printers has achieved a dramatic upswing in sales during the first six months of 2012. Compared to the same period last year, the printing and business services firm realized a 22-percent improvement in sales.

    Plum Grove has rebounded due to the diversity of its services and the acquisition of key new clients. The printer has spent the last decade diversifying its services beyond its core ink-on-paper business—offering marketing consultation, custom print-ordering websites for franchise organizations and other large firms, and even QR Code SmartPhone websites for mobile devices. The firm has also expanded sales of promotional products, such as imprinted shirts, hats and mugs.

    Direct mail marketing, one of Plum Grove’s key services, has also been making a comeback. The printers offers a comprehensive direct mail marketing program with targeted consumer lists, a professional design studio, printing and sophisticated mailing services.

    Peter Lineal, who founded the company in the northwest suburbs of Illinois in 1980, acknowledged that direct mail is “old school,” but nevertheless effective.

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  • 07.24.2012

    Harman Family to 'Stop Investing' in Newsweek

    On Monday (July 23), it was announced that family of the late Sidney Harman is freezing their 20-month investment in Newsweek/Daily Beast Co. That gives the other party, the Barry Diller-led IAC/InterActive Corp., a controlling interest that will grow as more money is put into the venture.
     
    Reuters reported that the aftermath from the April 2011 death of the 92-year-old Harman was the reason for the decision. Only he, per the family statement, "was actively involved in the Newsweek/Daily Beast business." Jane Harman, his widow and estate trustee, will remain on the corporate board of directors.
     
    The news was not a major surprise. Sidney Harman was a billionaire through his now-59-year-old Harman-Kardon audio/stereo company, and his being a fan of Newsweek is why in August 2010 he "rescued it" from The Washington Post Co. for $1 and his responsibility of more than $50 million in liabilities. The merger three months later with the IAC-owned Daily Beast was one of convenience, as Newsweek got a growing Web site (and Tina Brown as editor-in-chief) while The Daily Beast's identity grew substantially through its branding with what some would argue was a since-1933 American institution. 
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  • 07.24.2012

    Scholastic Folds Weekly Reader Brands into Its Classroom Magazines

    Scholastic is folding the Weekly Reader brand into its Classroom Magazines group. Some of the resulting titles will be co-branded, while others will be discontinued. The move comes just five months after Scholastic acquired Weekly Reader from Reader's Digest Association for $3.6 million.

    The plan had been to merge the Weekly Reader brands—more than a dozen in the elementary and high school grades—into Scholastic's existing stable of classroom magazines, now at about 28 subject-specific titles, shortly after the acquisition last February.

    Subscribers to the Weekly Reader brands will be transitioned to the new co-branded titles or Scholastic titles that have absorbed features of corresponding Weekly Reader magazines.

    "Editors from both Weekly Reader and Scholastic News have spent months in discussions with teachers determining which features work best for teachers and students," says a Scholastic spokesperson. "Some of the many magazines (ranging from social studies to math, health and the arts) will be co-branded, such as Junior Scholastic/Current Events and Scholastic News/Weekly Reader."

    The move was first reported by the New York Post, which said 55 of the 60 remaining Weekly Reader employees—40 were let go immediately after the acquisition—were going to be cut as a result.

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  • 07.24.2012

    Finch Paper and Omya Structure Long-Term Partnership to Drive Innovation

    Finch Paper, a dynamic uncoated paper company, has announced a long-term supply agreement with Omya, a leading manufacturer Precipitated Calcium Carbonate (PCC).
     
    The Finch mill, established in 1865, has a long history of manufacturing innovation. Its integrated infrastructure has allowed Finch to capitalize on integrated processes which in turn improves quality control and financial performance. Finch Paper was one of the first paper mills to construct its own PCC plant in 1984, and now looks to Omya’s technological advancements and process capabilities to accelerate their success in new markets.
     
    Omya is a leading global producer of industrial minerals derived from calcium carbonate.
     
    Paper being just one of their major markets, Omya operates nearly two dozen PCC plants in paper mills around the world. Finch Paper President and CEO Joseph Raccuia said “Omya has developed proprietary operating techniques that, combined with new investments we are making in our own plant, will take our operations to a whole new level.”
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  • 07.24.2012

    Crude Trades Near One-Week Low on Worsening European Crisis

    Oil erased gains in New York to trade near its lowest in a week amid concern that Europe’s debt crisis is deepening and will cut demand for fuels.

    West Texas Intermediate pared an earlier advance of as much as 0.9 percent. The euro fell for a fifth day against the yen, approaching an 11-year low, after Moody’s Investors Service cut its ratings outlook for Germany and the Netherlands yesterday amid speculation that Europe’s turmoil will engulf Spain and Italy. A U.S. government report tomorrow may show inventories fell for a fifth week, the longest stretch in a year.

    “Europe continues to be no closer to a solution, but politicians seem content to keep applying short-term fixes rather than address the underlying problems,” said Guy Wolf, a strategist at Marex Spectron Group Ltd., a London-based commodities broker. “Crude markets are caught between a deteriorating demand picture and tightening supply fundamentals.”

    Oil for September delivery was at $88.05 a barrel in electronic trading on the New York Mercantile Exchange at 11:36 a.m. London time. The contract dropped $3.69 to $88.14 yesterday, the lowest since July 13. Prices are down 11 percent this year.

    Brent crude for September settlement slipped 5 cents to $103.24 a barrel on the London-based ICE Futures Europe exchange. The contract yesterday slipped 3.3 percent to $103.26.

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  • 07.24.2012

    Apple's mobile ads lead in revenue production

    Mobile marketers are getting the strongest results from ads placed on Apple Inc.'s iPhone and iPad, based on the effective cost-per-thousand impressions measurement of those ads, according to a study by Internet browser company Opera Software.

    According to Opera's "The State of Mobile Advertising, Q2 2012," the iPad is returning an eCPM (a calculation of the ad revenue generated by a banner or campaign) of $3.96. Not far behind in performance are ads placed on the iPhone, with an average eCPM of $2.85. Devices running Google's Android OS have an average eCPM of $2.10.

    According to Opera's study, the iPhone and iPad have captured more than 61% of marketers' realized revenue, versus Android's nearly 27%. Opera's report is based on a study during this year's second quarter of mobile ads served for some 9,000 customers, representing more than 35 billion ad impressions per month.

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  • 07.24.2012

    ACMA Leads First Organized Opposition To Big Box Reteailers' Campaign To Force Remote Sellers to Collect and Pay Sales Tax

    The American Catalog Mailers Association Inc. announced its central participation in a new coalition to oppose changes to a law that would overturn the Supreme Court-tested finding that state and local tax collections represent a de facto barrier to interstate commerce. The True Simplification of Taxation (TruST) Coalition, cofounded by ACMA and three other concerned industry associations, represents American businesses in the fight to keep interstate commerce free from unfair tax burdens imposed by states where these businesses have no operations or representation.

    “The Constitutional right to sell across state lines is destroyed by more than 9,600 different taxing jurisdictions in the US, each with its own rates, definitions and regulations,” said Hamilton Davison, president of ACMA. “This is a nightmare for remote sellers, many of whom are mom-and-pop businesses without the sophistication to deal with this complexity.”

    Responding to pressure by big box retailers, Congress is considering legislatively overturning the Supreme Court in action that could come as early as this year. Without true simplification in retail sales tax schemes, “the Supreme Court decision that tested this matter twice before in 1967 and 1992 should be upheld,” Davison said. “It is vital that the other side of the story be told as there are many misconceptions about this issue in Washington. This move seeks to cure state and municipal budget woes but in reality, this adds less than 1% to total state and local tax revenues while crushing two entire segments of commerce that fuel our economy.”

    True Simplification of Taxation was cofounded by ACMA, the Direct Marketing Association, NetChoice, and the Electronic Retailing Association. In addition to advocacy, TruST will be an ongoing resource for those mobilizing against new remote sales and use taxes, which will slow and harm the growth of catalog and online retail. The Coalition is also launching an aggressive membership campaign. More details on the group’s progress to follow soon.

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  • 07.23.2012

    MWV Introduces Ergosol Trigger Actuated Aerosol Sprayer

    MeadWestvaco Corporation, a global leader in packaging and packaging solutions, today announced the launch of Ergosol(TM), an ergonomic trigger actuated aerosol sprayer for home and garden products.

    With Ergosol, brand owners can differentiate their products amongst more traditional push-button aerosol sprayers. During use consumers enjoy a comfortably ergonomic and easy to actuate spray experience, ultimately leading to increased brand loyalty. Ergosol provides the look and performance of a customized sprayer in an off-the-shelf solution, helping brand owners increase speed to market.

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  • 07.23.2012

    Appleton Papers and Hicks Acquisition Company II Discontinue Proposed Business Combination

    Appleton Papers Inc. and Hicks Acquisition Company II, Inc., a special purpose acquisition company sponsored by Thomas O. Hicks, announced they have mutually agreed to terminate their proposed business combination due to volatile market conditions.

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  • 07.23.2012

    Xerox Reports Second-Quarter 2012 Earnings

    Xerox announced today second-quarter 2012 adjusted earnings per share of 26 cents, which excludes 4 cents related to the amortization of intangibles, resulting in flat year-over-year GAAP earnings of 22 cents per share.

    In the second quarter, total revenue of $5.5 billion was down 1 percent or up 1 percent in constant currency.

    Operating margin of 9.7 percent was down 0.7 points from second-quarter 2011, and up 1.2 points from first quarter of this year, driven by a 1.3 point sequential improvement from the company’s services business. Second-quarter gross margin was 32 percent, and selling, administrative and general expenses were 19.4 percent of revenue.

    The company generated $228 million in cash from operations, a year-over-year decline primarily due to the change in the quarterly timing of cash pension contributions. Xerox continues to expect full-year operating cash flow of $2 billion to $2.3 billion, and plans to repurchase $900 million to $1.1 billion in Xerox stock during the year.

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  • 07.23.2012

    West Fraser Announces Second Quarter Results

    West Fraser Timber Co. Ltd. today reported earnings for the second quarter of 2012 of $27 million and earnings per share of $0.63 on sales of $774 million. For the first half of 2012, earnings were $10 million and earnings per share were $0.24, on sales of $1.5 billion.

    In the quarter the lumber segment generated operating earnings of $34 million and EBITDA of $53 million. Lumber prices rallied strongly as improved U.S. demand combined with continuing Asian demand for Canadian lumber. Higher lumber prices also triggered a reduction in duties (from 15% to 10%) charged on softwood lumber exported to the U.S. from B.C. and Alberta for the month of June 2012.

    The panels segment, which includes plywood, LVL and MDF, generated operating earnings in the quarter of $8 million and EBITDA of $12 million. Improved plywood and MDF prices were the main contributors.

    Pulp and paper operations generated operating earnings of $14 million and EBITDA of $26 million. The average NBSK benchmark price for the quarter increased to US$900 per tonne from US$870 in the previous quarter but reduced NBSK production and shipments and increased chemical costs resulted in a marginal decline in operating earnings compared with the previous quarter.

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  • 07.23.2012

    Stora Enso Interim Review January–June 2012

    Quarterly performance as anticipated, European paper and wood products markets continue to weaken
     
    • Operational EBIT at similar level to Q1 2012, lower year-on-year at EUR 141 (EUR 239) million mainly due to lower sales prices.
    • Cash flow from operations EUR 246 (EUR 207) million and liquidity EUR 1 240 (EUR 996) million, both stronger year-on-year.
     • NRI with a positive net impact of EUR 56 million on net profit and EUR 0.07 impact on EPS.
     • Printing and Reading and Building and Living plan additional cost reductions and temporary production curtailments in the second half of 2012.
     • Strategic investments to transform the Group progressing.
     • Q3 2012 sales are expected to be at roughly similar level and operational EBIT at similar level or somewhat higher than in Q2 2012.
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  • 07.23.2012

    Crown Holdings Reports Second Quarter 2012 Results

    Crown Holdings, Inc. today announced its financial results for the second quarter ended June 30, 2012.

    Net sales in the second quarter were $2,184 million compared to $2,281 million in the second quarter of 2011, including a decrease of $101 million due to unfavorable currency translation.

    Second quarter gross profit was $340 million compared to $371 million in the 2011 second quarter, reflecting reduced European profits, the result of lower customer demand and production activity for three-piece steel products and $13 million of unfavorable foreign currency translation.

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  • 07.23.2012

    Total US Boxboard Production Down in June

    The American Forest & Paper Association released its June 2012 U.S. Paperboard Report, which shows total boxboard production decreased by 1.8% compared to June 2011 and decreased 0.7% from last month.

    Unbleached Kraft Folding production increased over the same month last year, but decreased compared to last month.

    Total Solid Bleached Boxboard & Liner production decreased compared to June 2011 and remained flat compared to last month.

    Recycled Folding production decreased compared to June 2011 and decreased slightly when compared to last month.

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  • 07.23.2012

    Media General Reports Second-Quarter 2012 Results

    Media General, Inc., a local broadcast television and digital media company,  today reported 2012 second-quarter operating income of $16.4 million, compared with $6.2 million in the 2011 second quarter. The increase is mostly due to strong Political advertising and higher retransmission fees at the company’s 18 network-affiliated broadcast television stations, and core business displayed good strength as well.

    On June 25, 2012, the first day of the third quarter, Media General became a pure-play broadcast television company following the sale of virtually all of its newspapers to a subsidiary of Berkshire Hathaway, World Media Enterprises. Media General is in discussions with prospective buyers for The Tampa Tribune and its associated print and web operations and believes a sale is probable. All Media General newspapers are now shown as discontinued operations, as are Dealtaker.com and Professional Communications Systems, a broadcast equipment business.

    Total Broadcast and Digital revenues in the second quarter increased 17.3% to $84.1 million, from $71.7 million last year. Local time sales increased 4.4% to $47 million, from $45 million last year. National time sales increased 2.9% to $23.4 million, from $22.7 million last year. The largest broadcast advertising category, automotive, increased 26.5%. Other key categories delivering increases were financial, grocery, travel, home improvement, professional services and medical. Categories that declined included department stores, furniture, telecommunications and restaurants.

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  • 07.23.2012

    Grainger Reports Record EPS of $2.63 for the 2012 Second Quarter

    Grainger today reported record results for the 2012 second quarter ended June 30, 2012.  Sales of $2.2 billion were up 12 percent versus $2.0 billion in the second quarter of 2011.  There were 64 selling days in the quarter, the same as in 2011.  Net earnings for the quarter increased 12 percent to $191 million versus $170 million in 2011.  Earnings per share of $2.63 increased 12 percent versus $2.34 in 2011.  The 2011 second quarter included a $0.12 per share benefit primarily from the settlement of tax examinations.  Excluding the tax benefit in 2011, earnings per share increased 18 percent in the quarter.

    Sales in the 2012 second quarter increased 12 percent consisting of 5 percentage points from acquisitions and a 2 percentage point decline attributable to unfavorable foreign exchange.  Organic sales for the quarter increased 9 percent including 6 percentage points from volume and 3 percentage points from price.  On a daily basis, sales increased 12 percent in April, 13 percent in May and 12 percent in June. 

    Company operating earnings of $314 million for the 2012 second quarter increased 18 percent.  This earnings growth was driven by higher sales, improved gross profit margins and positive operating leverage.

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  • 07.23.2012

    Georgia-Pacific Completes Sale of EMEA Tissue Business

    Georgia-Pacific LLC announced today that it has completed the previously announced sale of its EMEA tissue business to SCA.

    The transaction included Georgia-Pacific’s consumer and away-from-home tissue paper products and personal care businesses and manufacturing assets across Europe, including leading consumer brands as well as away-from-home and private label products developed, manufactured, marketed and sold by 4,700 employees.

    Georgia-Pacific maintains a presence in Europe primarily through regional offices for GP Cellulose and GP Harmon Recycling.

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  • 07.23.2012

    Gannett Co., Inc. Reports Second Quarter Results

    Gannett Co., Inc., a leading international media and marketing solutions company, today reported second quarter financial results. Earnings per diluted share, on a GAAP (generally accepted accounting principles) basis were $0.51 for the second quarter of 2012 compared to $0.62 for the second quarter of 2011. Excluding special items in 2012 and 2011, second quarter earnings per diluted share were $0.56 compared to $0.58 for the same quarter last year.

    Net income attributable to Gannett in the second quarter of 2012 totaled $119.9 million while net income attributable to Gannett on a non-GAAP basis was $132.0 million. Reported operating income was $216.5 million and non-GAAP operating income totaled $236.8 million. Operating cash flow in the quarter (a non-GAAP term defined as operating income plus special items, depreciation and amortization) was $285.0 million.

    Total operating revenues for the company in the second quarter were $1.31 billion, a decline of just 2.1 percent from the second quarter of 2011. Broadcasting revenues were up 11.4 percent reflecting higher core and politically related advertising demand and significant growth in retransmission revenue.  Digital segment revenues were 4.5 percent higher due primarily to revenue growth at CareerBuilder.  Publishing segment revenues were 5.8 percent lower reflecting significant volatility in the quarter, particularly softer advertising demand in April and late June offset by firming results in May. On a constant currency basis, Publishing segment revenues were down 5.5 percent.

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  • 07.23.2012

    E-books Are Booming, and Still Sort of Small

    No surprise to anyone who reads a site like this one: Sales of e-books are booming.

    But just like most media formats, the book market is still a long way from converting completely to digital: Last year, print accounted for 85 percent of the publishing industry’s general interest sales.

    That number comes from the new BookStats survey, sponsored by two industry groups. It finds that Amazon and other digital distributors are taking an increasing chunk of the market, and that sales of “trade” e-books — basically, everything except educational and professional texts — doubled in the last year.

    That helped keep the publishing business more or less flat in 2011, even as print sales dropped off. Net publisher revenue for trade books increased 0.5 percent, to $13.97 billion, with e-books accounting for $2.1 billion of that. Meanwhile, overall net revenue dropped 2.5 percent, to $27.2 billion.

    That’s the kind of year executives in the newspaper and music business would have loved to have over the last decade. Those industries have seen their analog businesses drop off a cliff, and have spent a long time waiting for digital revenue streams to replace them. It took until 2011, for instance, for digital music sales to (barely) top CD sales in the U.S.

    But book publishers aren’t solely concerned with digital revenue — they’re also concerned about digital distribution, and who will control it. One of the big lessons media companies have taken from the music industry’s collapse is that they don’t want a single player — in the case of music, that would be Apple’s iTunes — with a lock on the digital market.

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  • 07.23.2012

    Oil Plunges to Four-Day Low as European Debt Turmoil Intensifies

    Oil dropped to the lowest level in four days in New York, dropping below $90 a barrel amid renewed concern that Europe is failing to resolve its debt crisis.

    Futures tumbled as much as 3.7 percent as the euro dropped to an 11-year low against the yen and the cost of insuring Spanish debt surged to a record. International creditors meet in Athens tomorrow as concern grows that Greece may not meet its bailout targets. Crude also fell after a Chinese central bank adviser said the nation’s economy may cool further, putting at risk consumption in the world’s second-biggest crude consumer.

    “The continuing saga of the euro, and in particular the travails of Spain and fears that this will soon be played out in France and Italy, is driving today’s sell-off,” said Christopher Bellew, senior broker at Jefferies Bache Ltd. in London, who predicts further price losses may be limited.

    Crude for September delivery fell as much as $3.43 to $88.40 a barrel in electronic trading on the New York Mercantile Exchange and was at $88.95 at 10:56 a.m. London time. The contract decreased 1.2 percent to $91.83 on July 20. Prices are 11 percent lower this year.

    Brent oil for September settlement on the London-based ICE Futures Europe exchange dropped as much as $3.88, or 3.6 percent, to $102.95 a barrel.

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  • 07.23.2012

    Sonoco Reports Second Quarter 2012 Results

    Sonoco, one of the largest diversified global packaging companies, today reported financial results for its 2012 second quarter, ending July 1, 2012.

    Second Quarter Highlights
    •Second quarter 2012 GAAP earnings per diluted share were $.50, compared with $.52 in 2011.
    •Second quarter 2012 GAAP results include after-tax charges of $.08 per diluted share, driven by previously announced restructuring activities.
    •Base net income attributable to Sonoco (base earnings) for second quarter 2012 was $.58 per diluted share, compared with $.60 in 2011. (See base earnings definition and reconciliation later in this release.) Sonoco previously provided second quarter base earnings guidance of $.55 to $.60 per diluted share.
    •Second quarter 2012 net sales were a record $1.20 billion, up 7 percent, compared with $1.13 billion in 2011.

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  • 07.23.2012

    White Birch to re-open Stadacona, move ahead with asset sale

    White Birch Paper Company will reopen the Stadacona newsprint mill in Quebec City on August 2. The mill has been closed since December 9, 2011. The announcement comes after several months of joint efforts with the Government of Quebec and the Syndicat canadien des communications, de l'énergie et du papier (SCEP) unionized employees, to obtain a sustainable operating plan, according to White Birch.
     
    “This marks a new beginning for the Stadacona mill. A second chance. Compromises by all parties involved, have resulted in a promising future for Stadacona,” stated Christopher Brant, president of White Birch.
     
    Brant extended his thanks to Minister Sam Hamad and the other members of the Quebec government for the role they played in ensuring the future of the mill. The provincial government has offered a loan of $35 million, conditional on the company investing $47 million to re-start the mill, reduce its production costs, and diversify its product lines.
     
    The new collective bargaining agreements and government support that paved the way for Stadacona to re-open also move the company closer to a court-approved sale. White Birch has been under creditor protection since 2010.

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  • 07.23.2012

    Pearson to acquire Author Solutions, Inc for $116m

    Pearson, the world’s leading learning company, is today announcing the acquisition of Author Solutions, Inc (ASI) from Bertram Capital for $116 million in cash.
     
    Formed in 2007, ASI is now the world’s leading provider of professional self-publishing services. It has enabled 150,000 authors to publish, market and distribute more than 190,000 books in print and electronic formats and benefits from several powerful growth trends including user-generated content, eBooks and digital publishing and marketing technologies.
     
    Self-publishing is a rapidly growing segment of the consumer books market. According to Bowker, 211,000 titles were self-published in 2011 in either print or digital form, an increase of almost 60% on 2010. The self-publishing sector has also become an important source of talent and content for the publishing industry, producing several bestselling authors including Lisa Genova, John Locke, Darcie Chan, Amanda Hocking, Bronnie Ware and E.L. James.
     
    The acquisition gives Penguin a leading position in this fast-growing segment of the publishing industry and brings significant opportunity for the two companies to collaborate. Penguin will gain access to ASI’s expertise in online marketing, consumer analytics, professional services and user-generated content. ASI will benefit from Penguin’s design, editorial and sales skills, and its strong international presence as it looks to expand outside the US.

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  • 07.23.2012

    International Paper Co. announces plant to close its Kalamazoo plant

    About 77 jobs will be lost when International Paper Co. closes its corrugated container plant in Kalamazoo in mid-September.

    The permanent closure was announced Friday.

    International Paper's Kalamazoo container plant is at 4015 Emerald Drive.

    "Following the merger with Temple-Inland, we have more capacity than our customers need in this area," Scott Dillon, complex general manager, stated in a press release. "Other area facilities are better positioned to handle the production requirements that will be necessary as we consolidate our operations, and unfortunately, that led to the decision to close this plant."

    The company said it would discuss plans for severance and other benefits with the local union, United Steelworkers Local 946.

    The 47-year-old plant produces 650 million square feet of corrugated packaging each year for customers in the automotive, protein, food and beverage, and industrial products industries.

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