Mercer International Inc. today reported results for the second quarter ended June 30, 2016. Operating EBITDA* in the second quarter of 2016 declined to $34.7 million from $50.0 million in the second quarter of 2015, primarily because of lower production resulting from an extended maintenance downtime and slow mill restart. For the second quarter of 2016, we had a net loss of $4.2 million, or $0.07 per basic and diluted share, compared to net income of $16.4 million, or $0.25 per basic and diluted share, in the second quarter of 2015.
Pratt Display continues its rapid expansion with the purchase of a fulfillment business from Ohio-based Quality Associates. The deal includes a full service stand-alone contract packing operation in West Chester, Ohio, three separate in-plant business operations for St. Bernard Soap Co. and The J.M. Smucker Company in Ohio, and an additional in-Distribution Center operation in Riverside, Maryland that provides fulfillment for Procter and Gamble. The acquisition follows the greenfielding and opening last spring by Pratt Display of a 450,000 square foot operation in Walton, KY which provides contract packing, sophisticated pick and pack, and national distribution for consumer product clients.
Zoo Printing has expanded its services to its growing customer base in the Greater Louisville, Kentucky area. This expansion enables the wholesale trade printer to offer free local delivery to three states, six major cities and surrounding areas, including Cincinnati, Columbus, Ohio, Dayton, Ohio, Indianapolis, Lexington, Ky., and Louisville, Ky. “We are thrilled to offer free local delivery to our customers in the thriving Metro Louisville area,” says Ark Andoun, Zoo Printing’s VP of operations. “We are grateful for their continued support and loyalty and our focus is to help our clients prosper by putting profits in their pocket.”
Sales for the first six months of 2016 fell 6.6% at Hachette Book Group, compared to the first six months of 2015, parent company Lagardere reported. Despite the revenue dip, HBG’s CEO Michael Pietsch said profits jumped 180%. He attributed the uptick to “disciplined cost management.” Revenue and earnings comparisons exclude the purchase of Perseus’ book group, which HBG completed at the end of March. In comments on the first half performance, Pietsch took note of the “tremendous change and growth” in the six-month period. In addition to the purchase and integration of Perseus, the company opened a new HBG warehouse. It added of a large new distribution client. It created a joint venture for HBG's Yen Press imprint with Japanese manga publisher Kadokawa. It also launched James Patterson’s new imprint, BookShots.
Transcontinental Inc. announced it is selling most of its commercial printing line of business operated from its Transcontinental Dartmouth plant to Advocate Printing and Publishing Company Limited, an independent printer and publisher in Atlantic Canada. This decision will result in the closure of the Transcontinental Dartmouth plant located at 140 Joseph Zatzman Drive in Dartmouth, Nova Scotia, by mid-August 2016. TC Transcontinental will continue to serve its customers in Atlantic Canada for retail flyers, newspapers and some specific commercial products through its printing network which includes Transcontinental Halifax, Transcontinental Prince Edward Island and Transcontinental St. John's.
*Positive Momentum Continues with 2Q EPS up 6% *International Achieves 2Q Record as Operating Profit Climbs 11% *U.S. Domestic and International Operating Margins Expand *Higher International Exports Driven by Express Products *Revenue Growth Tempered by Changes in Fuel and Currency *Affirms Full-Year 2016 EPS Guidance of $5.70 to $5.90
Digital printer Inc Direct has purchased an HP Indigo 7800, as part of its ongoing three-year investment strategy. It replaces an outgoing Xerox iGen4, which was up for renewal, and joins two more Xerox digital printers, another iGen4 and an iGen 150. It was one of the last 7800s to be installed in the UK, as the 7800 has now been permanently replaced by the 7900. Warner said: “This was predominantly about being able to have a wider colour gamut with seven-colour configuration and being able to print white with the ability to have raised inks and inline embossing. “We were working with some high-end luxury brands but with the current capability of the iGens we weren’t able to achieve what they wanted in terms of spot-colour and high-class litho finish. The indigo had the edge here.”
Second Quarter 2016 Highlights: • Revenue increased 3.4% year-over-year, primarily due to growth in the Financial Services (FS) segment which grew 10.2%. The FS segment includes the results of Datamyx LLC and FISC Solutions which were acquired in the fourth quarter of 2015. The Small Business Services segment grew 2.1% in the quarter. Revenue from marketing solutions and other services increased 16.1% year-over-year and accounted for 32.6% of consolidated revenue in the quarter. • Gross margin was 64.5% of revenue and increased slightly from 64.2% in the second quarter of 2015. Previous price increases, improvements in manufacturing productivity and a favorable adjustment from an environmental reserve, which was allocated proportionally to each of the three segments, were partially offset by increased delivery and material costs. click Read More below for details
As compared to 2015's second quarter, results for 2016's second quarter are below: •Net sales of $785 million up $114 million, or 17 percent •Net income of $21 million down $13 million, or 40 percent •Adjusted net income of $26 million down $16 million, or 39 percent •Adjusted EBITDA of $97 million down $14 million, or 13 percent •Diluted EPS of $0.21 down $0.14 per share, or 40 percent •Adjusted diluted EPS of $0.27 down $0.17 per share, or 39 percent. click Read More below for details
Net sales in the second quarter of 2016 were $1.8 billion, up $217 million, or 14 percent, from the prior year second quarter. The Company's investment in non-organic growth is driving the top line higher; the acquired business generated $234 million in net sales - 13 percent of global net sales - due to strong shipments within Mexico and to the United States. Price was up $18 million on a global basis, primarily driven by price adjustments that reflect cost inflation. Unfavorable currency translation adversely impacted net sales by $31 million, or 2 percent. Earnings from continuing operations before income taxes were $141 million in the quarter, an increase of $79 million compared with prior year. This was mainly driven by higher segment operating profit (+$46 million) and the change in items not considered representative of ongoing operations (+$33 million). Segment operating profit was $233 million in the second quarter, $46 million higher than prior year second quarter. The substantial year-on-year improvement was primarily driven by the strong results of Europe and the acquired business. Legacy Latin America reported strong performance in light of the aforementioned decline in volume. Adverse currency translation, primarily in Europe and Latin America, impacted segment operating profit by $5 million compared with the second quarter of prior year. click Read More below for details