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01.07.2013
Walgreens had December sales of $6.71 billion, a decrease of 4.0 percent from $6.99 billion for the same month in fiscal 2012.
Total front-end sales decreased 1.3 percent compared with the same month in fiscal 2012, while comparable store front-end sales decreased 2.3 percent. Customer traffic in comparable stores decreased 4.0 percent while basket size increased 1.7 percent.
Sales in comparable stores decreased by 6.1 percent in December. Calendar day shifts negatively impacted total comparable sales by 1.3 percentage points, while generic drug introductions in the last 12 months negatively impacted total comparable sales by 3.2 percentage points.
Calendar 2012 sales were $70.51 billion, a decrease of 3.7 percent from $73.19 billion in 2011.
Fiscal 2013 year-to-date sales for the first four months were $24.03 billion, down 4.4 percent from $25.15 billion in the comparable period in fiscal 2012.
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01.07.2013
UPM has finalized the employee information and consultation process with the Central Workers’ Council of UPM France and the Workers’ Council of the Stracel mill. The mill ceased production of coated magazine paper on January 4, 2013.
The consultation process was started in July, 2012. The process is part of UPM’s asset review announced on 31 August 2011, aiming to adjust company’s magazine paper capacity to match the needs of its global customer base.
The current customers of the UPM Stracel will be served from other UPM mills. UPM Stracel mill has been producing 270 000 tonnes of coated magazine paper grades. The mill has 250 employees.
As the next step, UPM will continue the negotiations of the sale of assets and part of the land of the Stracel mill to the joint venture created by VPK Packaging Group and Klingele Papierwerke.
“We have taken the necessary time needed to find the best possible solution for the Stracel mill and its employees. The process was done together with all relevant stakeholders and we want to thank them all for their cooperation” says Jyrki Ovaska, President of UPM Paper Business Group.
“The project of VPK and Klingele to convert the mill into a recycled fibre based containerboard mill is serious and provides an option to create a new industrial future for the Stracel site and for a number of its employees. The aim is to conclude these negotiations as soon as possible,” says Ovaska.
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01.07.2013
Potpourri Group announced yesterday that last month, it had acquired Cuddledown, Inc., a multichannel direct retailer of high-end bedding related products, for an undisclosed sum.
In a statement sent to the press, Potpourri Group president and CEO Jonathan Fleishmann said his company was attracted to Cuddledown because of the strength of its management team, led by president and CEO Chris Bradley, its impressive growth and the complementary nature of it product and customer base.
"We believe Cuddledown will benefit from the rebound in the housing market as well from (our) 17 million name customer database, with 2.7 million 12 month buyers," Fleishmann said in the statement. "The core of this database is middle to upper income female baby boomers and is the same as Cuddledown’s."
Yarmouth, ME-based Cuddledown is the third acquisition closed by Potpourri Group since 2010. It acquired Country Store from Readers Digest Association in 2010 and Fetch Dog from private investors in mid-2012.
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01.07.2013
Online sales rose 12.31% year over year in November, maintaining the pace set in October, among small and midsized retailers indexed by Dydacomp, a provider of order management software. Books blew away all other categories in the index at the start of the holiday shopping season with sales growth of 49.20%, followed by growth of 16.09% in sporting goods.
“The growth was driven by both an increase in the number of order transactions and an increase in the average order size,” says Fred Lizza, CEO of Dydacomp.
Book sales, with an average order value of $128.55, include sales in several specialty niche categories, Dydacomp says. “The nearly 50% jump in year-over-year growth in November sales for the books category was a surprising jump, although books have shown significant growth rates all year long,” Lizza says.
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01.07.2013
Catalyst Paper Corporation announced today that final approval has been received for listing on the Toronto Stock Exchange (TSX) of its new class of common shares (new Shares) created pursuant to its reorganization under the Companies’ Creditors Arrangement Act that completed on September 13, 2012. The new Shares will begin trading on the TSX on January 7, 2013 under the trading symbol “CYT”.
Catalyst also announced that it has initiated a Small Shareholder Selling Program (SSSP). The program gives shareholders of record as of January 3, 2013 holding 99 or fewer new Shares the opportunity to sell all of these Shares without incurring commission charges thereby minimizing their cost and inconvenience. While the SSSP does not include a mechanism to buy new Shares, the TSX listing will provide that opportunity for those who wish to purchase additional new Shares.
The SSSP will begin on January 7, 2013 and will expire on February 28, 2013, unless extended. Shareholders wishing to participate in the SSSP must sell all of their new Shares. Catalyst will arrange for orders received pursuant to the program to be sent to a participating organization of the TSX (the Broker) for execution after clearance of such orders for trading. Orders received and cleared for execution will be placed with the Broker no later than 12:00 p.m. on the next business day for execution by the TSX. Orders may be aggregated, but not netted, by Catalyst or the Broker. The price received by shareholders for their new Shares will be the average price received on all orders placed with the Broker for execution on a given day, regardless of when any individual orders are executed on that day.
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01.07.2013
Oil declined for a third day in London amid speculation that talks between Sudan and South Sudan may lead to the resumption of crude exports.
Brent futures fell as much as 0.5 percent, while the U.S. benchmark West Texas Intermediate lost as much as 0.6 percent. Sudanese President Umar al-Bashir and South Sudan’s Salva Kiir will meet in the Ethiopian capital Addis Ababa on Jan. 13, having agreed last week to set up a demilitarized zone along their border “without further delay.” Morgan Stanley said that Brent will come under pressure as demand eases after winter in the Northern Hemisphere and supplies in Angola, Nigeria and South Sudan are restored.
“The improved supply-demand balance should put marginal downward pressure on Brent prices over the next few months,” Hussein Allidina, head of commodities research at Morgan Stanley in New York, said in a report. “We assume production will return from South Sudan through 2013.”
Brent for February settlement slipped 33 cents to $110.98 a barrel on the London-based ICE Futures Europe exchange at 11:09 a.m. local time.
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01.04.2013
“The 112th Congress adjourned without having passed postal legislation. Such legislation could quickly restore the Postal Service to profitability and put the organization on a stable, long-term financial footing. This lack of action is disappointing.
The Postal Service has worked closely with the Congress over the past two years to advance a framework for a viable business model that will allow us to quickly respond to the evolving needs of our customers. As a result of frequent communication with Congressional leaders, we have modified important parts of our five-year comprehensive business plan, including the pace of consolidation of mail processing facilities, to give Congress maximum flexibility to make needed legislative changes. Unfortunately, Congress has not enacted these changes. As we sought to provide solutions to enable legislative change, we pursued cost-reducing and revenue-generating activities. Over the past two years we have reduced head count by approximately 60,000 career employees. We have consolidated 70 of our mail processing facilities. We moved to reduce hours at many of our Post Offices. We also have worked to substantially increase our package volume along with introducing a same-day delivery service.
As we look to the coming year, we are on an unsustainable financial path. We are currently losing $25 million per day, we have defaulted on $11.1 billion in Treasury payments and exhausted our borrowing authority. The Postal Service should not have to do business this way, which has undermined the confidence of our customer base and the $800 billion mailing industry we serve. We will be discussing with our Board of Governors a range of accelerated cost cutting and revenue generating measures designed to provide us some financial breathing room.
We encourage the new 113th Congress to make postal reform an urgent priority, and to work steadily toward the quick passage of reform legislation. We will continue to work with leaders of our House and Senate oversight committees and all members of Congress to help make this happen.”
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01.04.2013
On December 5, Burrows Paper Corporation completed the acquisition of the remaining 75 percent equity interest in Innopak Hong Kong Limited (the investment company that owns 100 percent of Innopak Heshan) from Innopak Holdings Limited. Until recently, Burrows was a 25 percent stakeholder in this joint venture packaging company.
The move further expands Burrows' ability to provide global customers with worldwide access to premium packaging for their products, company officials stated.
"We are very proud to welcome the Innopak team into the Burrows family," said Burrows Chairman, Chief Executive Officer and President Bill Burrows . "The synergy of our two companies holds great potential for mutually beneficial integration and significant growth opportunities. Through our shared values and commitment to quality, we will achieve our primary goal of providing superior packaging products to customers, as well as broader opportunities for employees."
Innopak Heshan is a converter of specialty paper and board-based foodservice packaging products. Innopak's current offerings include specialized hand carry bags, grease-resistant wraps, color printed clamshells and more.
The company was established in 2007 and its manufacturing facility is located at Longkou, Heshan, Guangdong, China. Stringent Good Manufacturing Practice and Hazard Analysis and Critical Control Point systems guide Innopak's ISO9001:2008 and QS registered operations.
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01.04.2013
While the industry as a whole is struggling with declining print ad revenues, there’s hopeful news going into the New Year, as some big magazine publishers are reporting major growth in digital revenues.
The 'Atlantic' announced that digital advertising revenue increased 32% in 2012 compared to the previous year, and now makes up over half (59%) of its total advertising revenues. Its events business, AtlanticLive, which produces events like the Aspen Ideas Festival and the Washington Ideas Forum, posted a 24% increase in revenues compared to the previous year.
2012 marked the third year in a row of profitability for the company overall.
The strong growth in digital revenues went hand in hand with big increases in the audiences for The Atlantic’s digital properties. In November, TheAtlantic.com attracted 13.1 million unique visitors, while TheAtlanticWire.com attracted 4.7 million unique visitors -- both record-breaking numbers for the company. TheAtlanticCities.com passed 1 million unique visitors for the first time in August, less than a year after launch. Together, the three Web sites saw traffic increase more than 50% in 2012 compared to 2011.
Separately, Wired said digital advertising contributed half of all ad revenues in the final quarter of 2012, according to Ad Age. For the year overall, digital ads contributed 45% of the brand’s total ad sales. That’s up from just 10% in 2006. Currently, about 90% of Wired’s digital ad revenues come from the Web, as opposed to mobile channels.
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01.04.2013
In the New Year, regional media company Yankee Publishing, Inc. welcomes some new additions—the company has acquired the entire portfolio of McLean Communications, which include five regional New Hampshire titles—its first such acquisition in 25 years.
“Essentially all of the assets of the corporation were included,” says Jamie Trowbridge, president and CEO of Yankee Publishing, Inc. “I’ve been watching this company grow in New Hampshire throughout the years and it’s a great fit with our company.”
Trowbridge declined to release financial terms of the deal.
The publisher and president of McLean Communications, Sharron McCarthy, came to New Hampshire-based Yankee Publishing after learning that the business’ parent company, Independent Publications, Inc., would be putting McLean Communications up for sale. The whole deal, says Trowbridge, took about three months to complete.
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01.04.2013
AAA Fuel Gage 1/04/13
National Unleaded Regular:
Current Average - $3.295/gallon
Month Ago Average - $3.380/gallon
Year Ago Average - $3.288/gallon
Highest Recorded Average - $4.114/gallon on 7/17/08
Diesel:
Current Average - $3.914/gallon
Month Ago Average - $4.008/gallon
Year Ago Average - $3.820/gallon
Highest Recorded Average - $4.845/gallon on 7/17/08
Current Exchange Rates as of 1/04/13
American Dollar to Canadian Dollar = 1.008147
American Dollar to Chinese Yuan = 0.160461
American Dollar to Euro = 1.300971
American Dollar to Japanese Yen = 0.11332
American Dollar to Mexican Peso = 0.078024
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01.04.2013
Oil dropped for a second day, erasing most of its weekly gain in London, after U.S. Federal Reserve officials signaled the winding down of a stimulus program this year in the world’s biggest crude user.
Brent futures dropped as much as 1.6 percent, trimming its weekly increase to 0.1 percent. Members of the Federal Open Market Committee said they will probably end their $85 billion monthly bond purchases sometime in 2013, according to minutes of its latest meeting released yesterday. The U.S. unemployment rate may have held at 7.7 percent, the lowest since December 2008, according to the median forecast of economists surveyed by Bloomberg ahead of a Labor Department report today.
“The U.S. is at a dangerous point where it could declare victory too early,” said Guy Wolf, a strategist at London-based commodities broker Marex Spectron Group Ltd., who predicts Brent will trade from $100 to $125 this quarter. “The risks to growth estimates in the U.S. in the second half are quite high. Removal of monetary stimulus combined with a fiscal tightening could be disastrous.”
Brent for February settlement slid as much as $1.76 to $110.38 a barrel on the London-based ICE Futures Europe exchange. It traded for $110.75 at 11:30 a.m. local time.
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01.04.2013
Colorfx announced its acquisition of Capitol City Graphics, also based here. With a 26-year history of outstanding customer service and customer loyalty, Capitol City’s operation will join with Colorfx to offer customers enhanced marketing solutions and access to a more robust printing platform.
“The team of print and mail professionals at Capitol City Graphics have an outstanding reputation for customer service and quality, and we look forward to bringing new value to its customer base,” said Jon Troen, president of Colorfx. “This is a great day for Capitol City customers and employees, whom we are excited to make a part of our growing team.”
Capitol City Graphics CEO Don Davidson added, “This new partnership will greatly benefit our customers. With the addition of design, photography and digital marketing, as well as the largest print and mail platform in the state of Iowa, Colorfx will allow us to offer our customers the expanded services they want while continuing to offer the service levels they have come to expect from Capitol City Grahics.”
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01.04.2013
Gap Inc. today announced it has acquired INTERMIX Holdco Inc., a multi-brand specialty retailer of luxury and contemporary women’s apparel and accessories, based in New York.
INTERMIX operates 32 boutiques across North America, along with an e-commerce site, offering a mix of luxury brands including up-and-coming designers for customers seeking elevated fashion. Gap Inc. sees an opportunity to expand INTERMIX’s unique network of stores, as well as add significant visibility and enhancements to its online site.
“INTERMIX has a distinctive position in this growing market with clear competitive advantage,” said Glenn Murphy, chairman and CEO of Gap Inc. “Their record of merchandising with a keen eye towards mixing multiple designer labels, complemented with exclusive product, is appealing to their loyal customers. This strategy reflects the strength of their brand vision and leadership team.”
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01.04.2013
International Paper today announced it has completed the acquisition of the shares of its joint venture partner Sabanci Holding in the Turkish corrugated packaging company Olmuksa, for a purchase price of $56 million. International Paper had obtained regulatory approval for the deal in the fourth quarter of 2012. The deal sees International Paper become the majority shareholder, owning approximately 87.5 percent of Olmuksa's outstanding shares. The change of control triggers a mandatory call for tender of the remaining public shares (approximately 12.5 percent float) of Olmuksa, which will be conducted in line with the regulations of the Turkish Capital Markets Board.
"Packaging is a core business for International Paper and this deal follows our commitment to expand profitably our strong global platform and regional presence," said Maximo Pacheco, President of International Paper Europe, Middle East & Africa. He added "It is an exciting opportunity to grow and serve our customers in a strategically important geography."
The Turkish corrugated market is currently the 7th largest in Europe with expected continued average growth rates of greater than 5% annually. The country is also strategically positioned to serve as potential growth platform to the Middle-East.
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01.04.2013
Gap Inc. today reported that December 2012 net sales increased 5 percent compared with last year.
Net sales for the five-week period ended December 29, 2012 were $2.08 billion compared with net sales of $1.98 billion for the five-week period ended December 31, 2011. The company’s comparable sales for December 2012 were up 5 percent compared with a 4 percent decrease for December 2011.
Year-to-date net sales were $14.52 billion for the 48 weeks ended December 29, 2012, an increase of 6 percent compared with net sales of $13.72 billion for the 48 weeks ended December 31, 2011. The company’s year-to-date comparable sales increased 4 percent compared with a 4 percent decrease last year.
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01.04.2013
Kohl’s Corporation reported today that for the five-week month ended December 29, 2012 total sales increased 4.0 percent and comparable store sales increased 3.4 percent over the five-week month ended December 31, 2011. For the November and December period, total sales increased 0.7 percent and comparable store sales increased 0.1 percent. Year to date, total sales increased 1.0 percent and comparable store sales decreased 0.3 percent.
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01.04.2013
Barnes & Noble, Inc. today reported holiday sales for the nine-week holiday period ending December 29, 2012.
The Retail segment, which consists of the Barnes & Noble bookstores and BN.com businesses, had revenues of $1.2 billion, decreasing 10.9% over the prior year. This decrease was attributable to an 8.2% decline in comparable store sales, store closures and lower online sales. Core comparable store sales, which exclude sales of NOOK products, decreased 3.1% as compared to the prior year due to lower bookstore traffic. Sales of NOOK products in the Retail segment declined during the holiday period due to lower unit volume and average selling prices.
While Retail sales of NOOK products fell short of the company’s expectations, bookstore sales of core products exceeded the company’s expectations, and therefore, the company continues to expect fiscal year 2013 Retail comparable bookstore sales to decline on a percentage basis in the low- to mid-single digits.
The NOOK segment, which consists of the company’s digital business (including Readers, digital content and accessories), had revenues of $311 million for the nine-week holiday period, decreasing 12.6% as compared to a year ago. Digital content sales increased 13.1%, while NOOK device unit sales declined during the holiday period as compared to the prior year. Digital content sales are defined to include digital books, digital newsstand, and the apps business.
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01.04.2013
Nordstrom, Inc. today reported an 8.6 percent increase in same-store sales for the five-week period ended December 29, 2012 compared with the five-week period ended December 31, 2011. Preliminary total retail sales of $1.72 billion for December 2012 increased 9.4 percent compared with total retail sales of $1.57 billion for the same period in fiscal 2011.
Quarter-to-date same-store sales increased 5.1 percent compared with the same period in fiscal 2011. Preliminary quarter-to-date total retail sales of $2.65 billion increased 6.6 percent compared with total retail sales of $2.48 billion for the same period in fiscal 2011.
Year-to-date same-store sales increased 7.0 percent compared with the same period in fiscal 2011. Preliminary year-to-date total retail sales of $10.81 billion increased 10.2 percent compared with total retail sales of $9.81 billion for the same period in fiscal 2011.
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01.04.2013
Stein Mart, Inc. today reported comparable store sales increased 5.9 percent for the five-week period ended December 29, 2012. Comparable store sales for the quarter to date November/December holiday selling period were up 6.3 percent. Total sales for December were $176.5 million, an increase of 6.4 percent from the same period in 2011. For the year to date, comparable store sales increased 2.6 percent and total sales increased 3.2 percent to $1.135 billion.
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01.04.2013
Rite Aid Corporation today announced sales results for December.
For the four weeks ended Dec. 29, 2012, same store sales decreased 2.2 percent over the prior-year period. December front-end same store sales decreased 1.0 percent. The New Year’s holiday calendar shift had a negative impact of 1.1 percent on front-end same store sales results. Pharmacy same store sales, which included an approximate 605 basis points negative impact from new generic introductions, decreased 2.9 percent. Prescription count at comparable stores increased 4.4 percent over the prior-year period. Increases in flu-related prescriptions and flu shots contributed 1.7 percent of this increase.
Same store sales for the 43-week period ended Dec. 29, 2012 increased 0.1 percent over the prior-year period. Front-end same store sales increased 1.4 percent while pharmacy same store sales decreased 0.6 percent. Prescription count at comparable stores increased 3.6 percent over the prior-year period.
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01.03.2013
As businesses ramp up marketing efforts to save the planet and regulators ready new guidelines to police them, it's becoming increasingly apparent that consumers aren't paying as much attention – at least if it's going to cost them more.
A Green Gauge survey by GfK finds that while 93% of consumers say they have personally changed their behavior to conserve energy in their household, they're becoming less willing to pay more for green products.
The survey of 2,000 U.S. consumers, fielded last summer, finds five- to 12-point drops in the percentage of consumers willing to pay more for eco-friendly cars, biodegradable plastic packaging, energy-efficient light bulbs, electricity from renewable resources or clothing made of organic or recycled materials.
Much of the fault for the consumer pushback lies with marketers for over-hyping green products and making overly aggressive claims.
"You have this kind of heightened distrust," said Diane Crispell, consulting director at GfK. "Consumers have become hypercritical. You see it with green and health claims."
Any way you cut it, green is big business. Sales of environmentally friendly products in the U.S. exceeded $40 billion last year, according to data from various market tracking services and Advertising Age estimates. This includes $29.2 billion for organic food, more than $10 billion for hybrid, electric and clean-diesel vehicles, more than $2 billion on energy-efficient light bulbs and $640 million on green cleaning products.
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01.03.2013
The US Postal Service has said it will adopt above-inflation rate increases for its loss-making Standard Mail Flats service each year up to 2016.
The move is prompted by the Postal Regulatory Commission’s 2010 order that rates should rise towards full cost coverage, so that other mail services do not subsidise the shipping of items like catalogues.
But USPS suggested the pricing strategy was “risky” in its latest annual regulatory compliance report, out on Friday.
To make the Flats rate increases without violating its inflation-based price cap, USPS said it would be unable to increase rates for other Standard Mail services by quite as much as it would like.
As a result, it warned that complying with the Commission’s orders for Standard Mail Flats meant it would be “spending” too much of its price cap on generating income from “mail volume that may not be around to pay those prices in the future”.
One key reason USPS has shied away from increasing Standard Mail Flats rates to full cost coverage has been the danger that it would push catalogue publishers into finding alternative distribution channels, at a time when catalogues are already moving into digital outlets like tablets.
Assuming the “systemic” decline in Standard Mail Flats volumes continue, USPS warned that the rest of Standard Mail services would be required to shoulder a larger portion of network costs, and by keeping those rates “low”, “the Commission’s strategy could weaken these products’ ability to bear this burden”, USPS said.
The USPS Standard Mail Flats service had an 80.7% cost coverage in the 12 months ending 30 September, 2012, according to Friday’s report. This was a 1.4 percentage point improvement on the 2011 cost coverage, reversing a three-year decline in the service’s cost coverage.
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01.03.2013
Soundview Paper Company LLC announced that it has acquired Putney, Vermont-based (USA) Putney Paper Co, Inc., a subsidiary of APC Paper Holdings, Inc., a towel and paper products manufacturer.
Soundview Paper said the acquisition brings a broader range of commercial towel manufacturing capability into its finished paper products offering of tissue, towel and napkin products to retailers, distributors and other customers.
“We are very enthusiastic about this important addition to Soundview’s Away-from-Home business and the synergies created by putting these enterprises together," said John McLean, SVP Sales & Marketing for Soundview Paper Company. Putney is recognized for its high quality commercial towel products and has a heritage of making tissue from 100% recycled paper, fitting perfectly into the family of Soundview and Marcal brands.
"With the addition of Putney, we now offer our customers an even broader product array of towel and tissue products in the Away-from-Home segment,” McLean added.
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01.03.2013
Hearst Corp. has attracted 800,000 subscribers for the digital versions of its magazines, according to Hearst President David Carey, who revealed the number in a letter to Hearst employees circulated this week.
That’s a bit short of Carey’s earlier stated goal of accumulating 1 million digital subscribers by the end of 2012, but noting the growing popularity of e-readers and tablet computers, he expressed confidence that Hearst will reach that milestone soon.
The number touted by Carey includes customers with monthly subscriptions to Hearst titles on iPads and Android devices, as well as e-readers like Barnes & Noble’s Nook and Amazon’s Kindle. Carey claimed that more than 80% of the subscribers are new to Hearst’s products. That's an interesting disclosure, which holds out the hope that the rise of digital magazines can provide incremental growth for the magazine business in general, rather than merely duplicating or replacing existing audiences.
Meanwhile on the Web, the number of monthly unique visitors to Hearst’s Web sites increased 30%, and page views from mobile devices grew from 39 million per month at the end of 2011 to 186 million per month at the end of 2012. The company’s brands have also accumulated a total of 7.7 million Facebook fans, as well as 5.5 million followers on Pinterest, and 4.7 million followers on Twitter.
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01.03.2013
Graphic Packaging Holding Company, a leading provider of packaging solutions to food, beverage and other consumer products companies, today announced that it has completed the previously announced acquisitions of Contego Packaging Holdings, Ltd., a leading food and consumer products packaging company based in the United Kingdom, and A&R Carton Holding B.V., which is A&R's European beer and beverage packaging business.
The combination of Graphic Packaging's European packaging business with these two acquisitions will create one of Europe's largest folding carton businesses. The two acquisitions will provide state of the art web and sheet-fed converting assets creating a manufacturing platform in Europe similar to Graphic Packaging's U.S. operations.
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01.03.2013
Crude slid for the first time in three days in New York on speculation that this week’s gains were unjustified as the U.S. budget deal is insufficient to ensure growth in the world’s biggest oil-consuming country.
Futures lost as much as 0.7 percent after rallying 2.6 percent in the past two sessions as U.S. lawmakers passed a bill to undo automatic tax increases and spending cuts that threatened the nation’s economic recovery. The accord won’t reduce deficits enough to avoid a sovereign-rating downgrade, Moody’s Investors Service said yesterday. Technical indicators showed crude may have risen too quickly, according to data compiled by Bloomberg.
“We’re seeing short-term jitters on the back of Moody’s comments of a potential downgrade in the pipeline if things are not improved in the coming months,” said Michael Poulsen, an analyst at Global Risk Management Ltd. in Middelfart, Denmark.
West Texas Intermediate for February delivery dropped as much as 63 cents to $92.49 a barrel in electronic trading on the New York Mercantile Exchange and was at $92.65 at 11:38 a.m. in London.
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01.03.2013
Global ad spending reached an estimated $519.0 billion last year, up 5.4% over 2011, according to revised figures from eMarketer.
In May, eMarketer projected global ad spending would total $538.0 billion for the year, up 6.8% over 2011.
The company revised that forecast due to continued economic uncertainty in many parts of the world.
Despite the revision, eMarketer projected global ad spending will continue to increase in the low single digits over the next few years, reaching a total of $628.2 billion by 2016. did they include a CAGR for the five years?
The fastest-growing ad market last year was Latin America, in which ad spending increased more than 11.0%, to $34.7 billion.
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01.03.2013
The Bon-Ton Stores, Inc. today announced comparable store sales in the five weeks ended December 29, 2012 increased 2.4%. Total sales increased 1.5% to $512.9 million in the current year compared with $505.2 million in the prior year period.
Year-to-date comparable store sales increased 0.6%. Year-to-date total sales increased 0.3% to $2,718.6 million, compared with $2,710.3 million in the same period last year.
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01.03.2013
Costco Wholesale Corporation today reported net sales of $11.21 billion for the month of December, the five weeks ended December 30, 2012, an increase of twelve percent from $10.05 billion during the similar five-week period last year. This year's five-week period contained an extra day compared to last year, due to the timing of the New Year's holiday, which positively impacted total and comparable sales by approximately 2%.
For the first seventeen weeks of its fiscal year ended December 30, 2012, the Company reported net sales of $34.42 billion, an increase of nine percent from $31.68 billion during the similar period last year.
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01.03.2013
Limited Brands, Inc. reported a comparable store sales increase of 3 percent for the five weeks ended Dec. 29, 2012, compared to the five weeks ended Dec. 31, 2011. The company reported net sales of $1.947 billion for the five weeks ended Dec. 29, 2012, compared to net sales of $1.868 billion last year.
The company reported a comparable store sales increase of 6 percent for the 48 weeks ended Dec. 29, 2012, compared to the 48 weeks ended Dec. 31, 2011. The company reported net sales of $9.472 billion for the 48 weeks ended Dec. 29, 2012, compared to sales of $9.590 billion last year.
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01.03.2013
The Finance Authority of Maine last week approved roughly $16 million in tax credits for two groups making investments related to Great Northern Paper Co.’s mill in East Millinocket. FAME also approved a $300,000 loan for a Maine boat builder.
FAME claims in a media release the two decisions are “expected to help create and retain 448 Maine jobs” combined, although a breakdown of how many new jobs would be created vs. existing jobs retained was not available Friday.
FAME’s Board of Directors at its meeting on Dec. 20 approved the reward of nearly $16 million in tax credits to two community development entities — Stonehenge Community Development LXI LLC and Enhanced Capital New Market Development Fund X LLC — for their investments in the Great Northern Paper mill in East Millinocket.
Enhanced Capital received a tax credit certificate for $8,125,260, while Stonehenge Community Development received a tax credit certificate for $7.8 million, according to FAME’s media release.
The tax credits are the first to be granted under the FAME-administered Maine New Markets Capital Investment Program, according to Chris Roney, FAME’s general counsel.
The program provides state tax credits of up to 39 percent to investors in qualified community development entities, such as Stonehenge and Enhanced Capital, that reinvest in qualified businesses in eligible low-income communities in Maine. The 125th Maine Legislature created the program and modeled it after the federal New Markets Tax Credit Program.
The two community development entities, which are both from Louisiana, each invested about $20 million in GNP’s East Millinocket paper mill, Roney said. So the tax credits they received were 39 percent of those investments.
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01.03.2013
Macy's, Inc. today reported total sales of $5.102 billion for the five weeks ended Dec. 29, 2012, an increase of 3.6 percent compared with total sales of $4.923 billion in the five weeks ended Dec. 31, 2011. On a same-store basis, Macy's, Inc. sales were up 4.1 percent in December as compared to December 2011.
Same-store sales increased by 2.5 percent for November and December 2012 combined as compared to the same period in 2011.
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01.03.2013
Target Corporation today reported that its net retail sales for the five weeks ended December 29, 2012 were $10,214 million, an increase of 0.8 percent from $10,138 million for the five weeks ended December 31, 2011. On this same basis, December comparable-store sales were essentially flat.
As a reminder, in Target’s third quarter 2012 earnings release the company indicated that it expected fourth quarter 2012 adjusted EPS of $1.64 to $1.74 and GAAP EPS of $1.45 to $1.55. The 19-cent difference between these ranges reflected the expected EPS impact of expenses related to the company’s Canadian market entry.
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01.02.2013
Packaging is a necessary part of a lot of food distribution, and yet remains an environmental problem when it ends up contributing to landfills and litter. We’ve already seen projects such as Canada’s Tiffin Project, which provides a small re-usable tin for takeaway customers to put their food in, but now a marketing campaign for Bob’s fast food chain in Brazil has come up with another solution – by making its packaging edible.
Conceived with the help of advertising agency NBS, the restaurant franchise wrapped its burgers in a kind of rice paper that can be eaten along with the burger. Instead of unwrapping the food, customers were able to simply bite into the wrapped product. The idea behind the campaign was to illustrate the irresistibility of the burgers, but – according to the company – there were no wrappers left in the restaurant following the campaign, suggesting the concept could provide an environmentally-friendly solution to litter.
Although the taste and texture of the paper may not have complimented the burger, Bob’s took a step towards combatting the sustainability problem with packaging. Could this campaign be implemented more permanently?
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01.02.2013
Tribune Company, the big broadcasting and newspaper group, emerged from bankruptcy protection Monday -- and is seemingly ready to be sold off to a number of potential media buyers.
With a new board of directors composed mostly of entertainment-industry veterans, the company has now exited bankruptcy after four years -- one of the longest in U.S. corporate history.
At this height, after its buyout from real-estate magnate Sam Zell in December 2008, the company had $12.9 billion in debt -- just as the economy and the media advertising market was collapsing.
Tribune chief executive Eddy Hartenstein is expected to leave -- and veteran TV executive Peter Liguori is expected to succeed him at CEO of Tribune. Liguori had been COO of Discovery Communications and before that ran two News Corp. networks: Fox Broadcasting and the FX cable network.
Tribune owns 23 local television stations -- many in key major markets -- eight daily newspapers and other media properties. It also has a minority position in the Food Network cable channel, whose majority owner is Scripps Network Interactive. It holds a 25% stake in the CareerBuilder Web site.
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01.02.2013
For over a decade, traditional media companies have pointed to digital media as a promising source of revenue growth -- but as 2012 draws to an end, it’s clear that this promise is still more theoretical than real, while ad dollars continue to migrate away from traditional channels. This is particularly true for broadcast radio groups and newspaper publishers, whose 2012 results have (so far) offered little in the way of digital cheer.
In the first nine months of 2012, total digital advertising revenues for the radio industry came to $561 million, according to the Radio Advertising Bureau, up 7% from about $524 million in the same period of 2011. While this is not an insignificant sum, it's just 4.6% of total radio ad revenues of $12 billion. This comes as spot advertising, the mainstay of the radio business, delivers flat growth for the year-to-date.
Traditional radio broadcasters are also lagging behind in attracting digital audiences.
The most popular digital platform created by a traditional broadcaster is probably Clear Channel’s iHeartRadio, which has attracted around 20 million registered users, up from 10 million in May of this year. Over the same period, Pandora -- perhaps the most popular pure-play digital radio platform -- has grown from 150 million users to 175 million users.
Of course, in proportional terms this means that iHeartRadio is growing faster -- and Pandora has plenty of its own problems to deal with, including how to monetize its audience and digital music royalties. But in terms of sheer numbers, Pandora’s audience is almost 10 times as large as the most popular digital offering from the nation’s largest broadcast radio group.
Newspapers are in even worse shape. For the first three quarters of 2012, total online advertising revenues came to $2.4 billion -- up just 2.4% from $2.3 billion in the same period of 2011, according to the Newspaper Association of America. The 2012 figure is also just 14.9% of total newspaper ad revenues -- around $16 billion.
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01.02.2013
M&A activity skyrocketed to prerecession levels in several major industry sectors, according to a year-end report from investment banking firm The Jordan, Edmiston Group (JEGI).
Overall, deals for the 10 media and marketing sectors measured in the report totaled $74.7 billion in 2012, up 44 percent from last year and a five-year high. In raw volume, there were a record 1,351 sales-including a flurry in the fourth quarter as sellers raced to beat anticipated tax code changes in 2013.
"The state of the media and marketing world is very healthy," says Tolman Geffs, a co-president of JEGI. "You've got continued waves of innovation as emerging companies drive new forms of effectiveness and efficiency. On the other hand, you have both corporate and private-equity acquirers who are ready, able and very willing to tap into those new sources of growth."
Sharp differences exist between b-to-b and consumer media however.
Broken down by category, b-to-b media was the largest percentage mover in the group. The sector shot up 143 percent in volume and an incredible 731 percent in dollar value, but at just $411 million (less than 1 percent of total M&A activity for the year), the small sample size accounts for much of that variation, according to Geffs.
Conversely, consumer magazines represented one of the slowest growth areas measured. Volume growth (up 34 percent) trailed the market average (50 percent), and, with purchase dollars plunging 91 percent, consumer magazines were the only group to suffer a decline in value. Sales totaled just $277 million in aggregate, down from $3.2 billion in 2011.
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01.02.2013
In silent, temperature-controlled labs in a desolate part of Hainan, China's most tropical province, rows of women in medical masks and lab coats clone trees that grow freakishly fast.
The trees have official names, such as APP-22 or DH32-29, but Wending Huang, Asia Pulp & Paper Co.'s chief forester in China, calls them his "Yao Mings" after the towering Chinese basketball star. The tiny green tissue samples, methodically implanted in petri jars, will become hardwood eucalyptus trees that need only four to six years to reach full height, up to 90 feet or more.
The test-tube forests have helped undo the long-standing natural advantage of papermaking states such as Wisconsin, where hardwood trees are plentiful but can take up to 10 times as long to reach harvesting height.
What's more, boosted by billions in government subsidies, China has been building massive new mills with automated machines that can produce a mile of glossy publishing-grade paper a minute.
Over the course of the last decade, China tripled its paper production and in 2009 overtook the United States as the world's biggest papermaker. It can now match the annual output of Wisconsin, America's top papermaking state, in the span of three weeks.
China also created the world's biggest and most efficient paper recycling scheme. It now buys about 27 million tons of scrap paper and used cardboard from around the world each year, then de-inks and re-pulps it for about two-thirds of its own paper and cardboard production.
But that is still not enough — for China's needs or its ambition.
China imports the vast majority of virgin timber and processed pulp from around the world — 14.5 million tons last year from places like Russia, Indonesia and Vietnam. That has earned the ire of environmental groups, which say China's insatiable appetite for wood pulp is destroying the world's forests. It has drawn the fire of politicians who accuse China of unfairly subsidizing its mills and dumping paper on the U.S. market, putting domestic operations out of business and an entire industry at risk.
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12.31.2012
The percentage of adult Americans who read a book this fall fell to 75% from 78% a year ago, according to new survey findings by the Pew Research Center released December 27. The survey of Americans age 16 and older found that 23% of people in the age bracket read e-books in the previous 12 months, up from 16% a year ago, while the percentage who read print books fell to 67% from 72%.
The survey, from the Pew Research Center’s Internet & American Life Project, was conducted from October 15-November 10 among 2,252 Americans 16 and up. The increase in e-book reading was fueled by higher ownership of digital reading devices, with the survey finding that 33% of Americans 16 and up had either a dedicated e-reader or a tablet, up from 18% in late 2011.
E-book usage among library patrons also rose in the last year, although it still remained at relatively low levels. Five percent of recent library users said they had borrowed an e-book in the past year, up from 3%; the percentage of library users who are aware that e-books are available at the library took a more significant upturn, rising to 31% from 24%.
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12.31.2012
In an ironic and creepy endnote to a year that ended with an assault weapons massacre of young children at an elementary school in Connecticut, the two “most notable” magazine launches of 2012 were (in this order) a magazine aimed at the kind of extreme gun enthusiasts who covet aforementioned assault weapons, and a magazine aimed at young children, according to an annual list published by consumer magazine trend follower, Samir Husni, a professor at the University of Mississippi, who is also known as the “Magazine Guy.”
The aptly named Recoil ranked No. 1, Husni explained to online business news service CommPRO.biz, because it is “an artfully-done, gun-lifestyle magazine that is selling for as much as $125 an issue on eBay.”
Recoil’s debut issue features an HK MR556A1 on the cover as Playboy would a scantily-clad starlet, with the cover line, “Best AR Ever!” AR, presumably is an abbreviation of assault rifle. Subsequent issues featured similar assault weapon porn on their covers.
“For the gun enthusiast, this magazine is the answer to a prayer and proudly promotes the Second Amendment without apology,” Husni writes in his commentary on 2012’s magazine publishing highlights, of which No. 2 was actually Highlight’s Hello, a spinoff of the long-running children’s magazine, which Husni says is aimed at ages 0-2, although its readership likely skews on the higher end.
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12.31.2012
Oil fluctuated in New York, heading for its first annual loss since 2008, as U.S. lawmakers tried to bridge disagreements over how to avert tax increases and spending cuts that threaten the world’s largest economy.
West Texas Intermediate futures were little changed after sliding for two days as U.S. Senate Majority Leader Harry Reid said there are “still significant differences” between Democrats and Republicans with one day remaining to avoid the fiscal cliff. A purchasing managers’ index for China by HSBC Holdings Plc and Markit Economics showed a reading of 51.5 for December, the highest in 19 months and the second above 50, which indicates an expansion.
“Without reaching a fiscal policy agreement, demand for U.S. oil could come off, and that could drag WTI down,” said Gordon Kwan, the head of regional energy research for Mirae Assets Securities Ltd. in Hong Kong, who forecasts oil in New York to trade between $87 and $93 a barrel next week. “The improved PMI number from China will add a cushion to oil prices, despite the deadlock in Congress.”
Crude for February delivery was at $90.91 a barrel, up 11 cent, in electronic trading on the New York Mercantile Exchange at 4 p.m. in Singapore. It earlier fell as much as 0.5 percent. Prices gained 2.4 percent last week, a third consecutive advance. They are up 2.2 percent this month, trimming the quarter’s loss to 1.7 percent.
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12.31.2012
Bobit Business Media has acquired the print and digital assets of Auto Dealer Monthly LLC (ADM), reports Modern Tire Dealer magazine, a property of Bobit Business Media.
According to the report, the acquisition includes the Auto Dealer Monthly magazine, AutoDealerMonthly.com, weekly e-newsletters Auto Dealer Monthly and Special Finance Insider, DealersChoiceAwards.com and SpecialFinanceInsider.com. Earlier this month, Bobit announced it acquired the assets of Limoforsale.com.
The transaction expands Bobit's portfolio of brands covering the auto dealer market. The company publishes industry magazine F&I and Showroom and produces the annual Industry Summit. According to Modern Tire Dealer, ADM Founder Greg Goebel will continue to serve as MC for the Special Finance Conference. Last year, ADM announced its Special Finance Conference would co-locate and join with Industry Summit.
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12.31.2012
The American Forest & Paper Association (AF&PA) today commended the U.S. Department of Agriculture (USDA) for issuing the proposed Paper and Paper-Based Packaging Promotion, Research and Information Order for public comment. The proposal would establish a program covering the printing and writing, kraft, containerboard, and paperboard segments of the industry. Carbonless papers and newsprint would not be included in the program.
"We need to present consumers with the facts of the renewable and recyclable nature of our products to allow them to make informed decisions, and today's actions by USDA take us one step closer," said AF&PA Board Chairman Alexander Toeldte, president and CEO of Boise, Inc. "Our industry has come together in support understand the benefits and sustainability of paper products they depend on in their daily lives."
The Paper and Paper-Based Packaging Promotion, Research and Information Order was initiated by a panel of industry leaders. The program will be funded through an assessment of 35 cents per short ton on companies producing or importing 100,000 tons or more annually. Small producers and importers, along with converters, will not be assessed but will benefit from the promotion program. The program will be administered by a 12-person board of directors, which will carry out the activities to highlight the renewability, reusability and recyclability of paper and paper-based packaging. A referendum would be held among eligible domestic producers and importers prior to the program going into effect.
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12.31.2012
A strike that could have crippled 15 major ports on the East Coast and the Gulf and put a crimp in the nation's commerce has been avoided after dock workers, port operators and shippers agreed to a deal that extends the workers' contract, a federal mediator said Friday.
The parties settled on a 30-day extension of the contract after a meeting Thursday with Federal Mediation and Conciliation Service Director George H. Cohen, the FMCS said in a statement.
The parties had faced a Saturday deadline for resolving the labor dispute. The International Longshoremen's Association, which represented the dock workers, had threatened to strike a day later.
The strike would have shut down major ports, including the port of New York and New Jersey, the largest on the East Coast and the second-largest port in the U.S. to handle manufactured goods from China.
Earlier Friday, The White House had urged the parties to resolve their differences. The dispute centered on a cap to payments to dock workers based on the weight of the container cargo, known as "container royalties."
The new contract does not eliminate the royalty payments, according to Benny Holland, an executive vice president for the ILA.
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12.31.2012
Pearson, the world's leading learning company, is today announcing a strategic investment in NOOK Media, LLC, a new company consisting of Barnes & Noble's digital businesses including its NOOK e-reader and tablets, the NOOK digital bookstore and its 674 college bookstores across America.
Pearson will invest $89.5 million in cash in NOOK Media, gaining a five per cent equity stake. Following the transaction, Barnes & Noble will own approximately 78.2 percent of NOOK Media and Microsoft will own approximately 16.8 percent. Subject to certain conditions, Pearson will earn the option to purchase up to an additional five percent ownership in NOOK Media.
Pearson’s strategic investment in NOOK Media will help accelerate customer access to digital content by pairing the company’s leading expertise in online learning with NOOK Media’s expertise in online distribution and customer service. This will facilitate improved discovery of available digital content and services, as well as seamless access.
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12.28.2012
AAA Fuel Gage 12/28/12
National Unleaded Regular:
Current Average - $3.279/gallon
Month Ago Average - $3.415/gallon
Year Ago Average - $3.243/gallon
Highest Recorded Average - $4.114/gallon on 7/17/08
Diesel:
Current Average - $3.917/gallon
Month Ago Average - $4.020/gallon
Year Ago Average - $3.824/gallon
Highest Recorded Average - $4.845/gallon on 7/17/08
Current Exchange Rates as of 12/28/12
American Dollar to Canadian Dollar = 1.005079
American Dollar to Chinese Yuan = 0.160428
American Dollar to Euro = 1.319652
American Dollar to Japanese Yen = 0.11618
American Dollar to Mexican Peso = 0.076998
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12.28.2012
Oil headed for the biggest weekly gain since August in New York as U.S. lawmakers scheduled talks aimed at averting automatic tax increases and spending cuts that threaten the economy of the world’s largest crude consumer.
West Texas Intermediate climbed as much as 0.7 percent, extending this week’s advance to 2.5 percent. Congressional leaders plan to meet with President Barack Obama today, seeking to resolve a budget impasse before at least $600 billion in fiscal measures take effect on Jan. 1. House Majority Leader Eric Cantor announced the chamber will meet Dec. 30 for its first Sunday session in more than two years. U.S. stockpiles shrank last week, an industry report showed yesterday.
“Prices could jump if U.S. politicians strike a deal on avoiding the fiscal cliff,” said Michael Poulsen, an analyst at Global Risk Management Ltd. in Middelfart, Denmark, who predicts Brent, the benchmark grade for half the world's oil, will be little changed in the first quarter, averaging $112 a barrel. “If no deal is struck, prices are likely to trade sideways at current levels.”
WTI for February delivery climbed as much as 62 cents to $91.49 a barrel in electronic trading on the New York Mercantile Exchange and was at $90.90 at 10:42 a.m. London time.
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12.28.2012
Book sales had a strong showing in the week leading up to Christmas with sales rising 24% over the prior week at outlets that report to Nielsen BookScan. The 27.3 million print units sold during the week ended December 23, moreover, was a 5% increase over the last week before Christmas in 2011 when 26.1 million units were sold.
Gains were driven by the children’ categories with nonfiction up 19% and fiction ahead 7%. The adult categories had more modest gains with fiction sales increasing 2% and nonfiction up 1%.
Sales through retail and clubs rose 6% in the most recent week over 2011, while sales through mass merchandisers and other retails were 3% down compared to last year. Frontlist and backlist titles performed about the same with frontlist up 5% in the week and backlist units ahead 4%. Sales in BookScan’s South Atlantic region had the biggest gain in the week with sales up 12%, while sales were weakest in the Middle Atlantic where they were flat with 2011.
Jeff Kinney’s The Third Wheel was the top selling title in Christmas week at outlets that report to BookScan, though its 186,214 units sold was actually 4% behind the sales volume in the previous week. Bill O’Reilly took second and third place in the week with Killing Kennedy and Killing Lincoln. The Racketeer and Proof of Heaven rounded out the top five bestsellers. And how did the book of the year do as a Christmas present? Fifty Shades of Grey landed in ninth place in Christmas week, selling a shade under 65,000 units.
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12.28.2012
2009 was miserable. 2010 wasn’t much better. 2011 was a little bit worse. And 2012 looks to be, in a word, crappy.
Magazines can’t seem to catch a break, as the ongoing transition to digital media continues to undermine print advertising, still the main source of revenue for most big publishers. According to the Publishers Information Bureau, total ad pages fell 8.6% in the first nine months of 2012, compared to the same period last year.
That follows a decline of 3.2% for the full year 2011, which followed a flat 2010, which looked positively spectacular compared to drops of 25.6% in 2009 and 11.6% in 2008 -- blows from which the industry has never recovered.
Indeed, taking a somewhat longer perspective, the total number of ad pages at publications tracked by PIB has fallen from 179,339 in the first three quarters of 2006 to 110,483 in the first three quarters of 2012. That’s a 38.4% drop in six years -- not quite as bad as the newspaper business, where revenues are down by half, but a steep enough decline to prompt New York Times media columnist David Carr to warn in August: “Now, like newspapers, they seem to have reached the edge of the cliff.”
There is no solace to be found in circulation numbers, which confirm the decline of print audiences across a range of categories. According to the latest report from the Alliance of Audited Media (formerly the Audit Bureau of Circulations), in the first half of 2012, newsstand sales fell, for example: 5.7% at Cosmopolitan; 18.5% at the Economist; 20.5% at Elle; 6.8% at Glamour; 8.6% at GQ; 13.3% at In Touch Weekly; 14.6% at Ladies’ Home Journal; 20% at Maxim; 17.6% at Martha Stewart Living; 9.5% atMen’s Health; and 18.5% at People.
Of course, there is a glimmer of hope (and maybe more) in the rise of tablet computers, which magazine publishers immediately identified as a natural channel for the digital versions of their products. One out of every four Americans now owns a tablet computer, according to Pew, and the number rises to a third when e-readers are included.
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