Somewhere along the way, Sussex-based Quad/Graphics Inc. began doing more than just printing magazines. It happened before the company started inserting virtual reality viewers in the Sports Illustrated swimsuit issue and developing plans to help clients get branded VR viewers inserted into magazines. It was also before Quad built a $200 million packaging company and added offerings for in-store displays. When Quad took over the creative work for Cabela’s and placed its employees on-site at Dick’s Sporting Goods and L.L. Bean, it had already happened. Convincing 50 online retailers to print physical catalogs was about more than just adding volume. Suddenly, Quad was investing in digital marketing and video placement companies and analyzing data on marketing campaigns. Somewhere along the way, Quad/Graphics became more than just a printer, but for Joel Quadracci, the transformation is a continuation of what the company has previously done. click Read More below to continue
Oil declined amid doubts producers will agree on a deal to stabilize the market when suppliers meet next month for informal talks. West Texas Intermediate for October delivery dropped as much as 86 cents to $46.78 a barrel on the New York Mercantile Exchange and was at $47.02 at 1:33 p.m. in Dubai. The contract gained 31 cents to $47.64 on Friday, trimming a weekly decline. Total volume traded was about 42 percent below the 100-day average. Prices slid 1.8 percent last week. Brent for October settlement lost as much as 87 cents, or 1.7 percent, to $49.05 a barrel on the London-based ICE Futures Europe exchange. The global benchmark crude traded at a premium of $2.26 to WTI.
The U.S. advertising market is expected to grow at its fastest rate since 2010 -- nearly 6%. Upgrading its earlier forecast, London-based advertising researcher Warc says U.S. ad spend will rise 5.8% to a record high of $178 billion -- double the amount projected for the overall U.S. economy. U.S. TV spending will rise 6.6% to $68 billion this year, due to increased spending with the Rio Olympics and the U.S. presidential election. A year ago Warc says the U.S. TV advertising market sank 3.5% versus 2014. U.S. digital media spending will grow at over double the rate of TV -- 13.7%. Overall, Warc says digital media will achieve near the same dollar value of the TV ad market this year -- and rising above TV next year. Two other growth areas among U.S. media segments are in-theater advertising, 5.1% and outdoor, 3.3%. Sinking categories are newspapers, 12.7%; magazines, 12.4%; and and radio, 2.8%.
The National Retail Federation (NRF) welcomed the release of draft online sales tax legislation by House Judiciary Committee Chairman Robert Goodlatte, R-Va., saying action is needed to break Congress’ standstill on the issue. “Retailers should be allowed to compete based on how well they serve their customers, not according to tax policy determined by an out-of-date, quarter-century-old court decision, ” NRF Senior Vice President for Government Relations David French said. Total Retail’s Take: The battle over online sales tax legislation dates back 15 years. Under a 1992 Supreme Court ruling, online sellers can only be required to collect sales tax in states where they have physical presences (e.g., headquarters, storefronts, distribution centers). However, in an increasingly digital environment, the current legislation doesn’t hold up. As a consumer, more taxes isn’t my favorite idea. But for brick-and-mortar retailers competing against their online counterparts that don’t have to collect sales taxes in some states, this legislation could make or break their businesses. I’m happy to see there’s movement on it, but as with most things in Washington, I don’t see a quick resolution in the cards.
Stora Enso is investing a total of EUR 6.6 million in the corrugated packaging business in Sweden. The aim is to strengthen competitiveness and to improve printing quality and service to customers. The investment encompasses a new corrugated cutting machine with high-quality printing in the Jönköping factory, and a smaller upgrade of the cutting system in the Skene factory. Implementation will begin in the first quarter of 2017 in both Jönköping and Skene. In May 2017, the investment is expected to be in operation. "Market demand for efficiently produced packaging with high-quality printing is constantly growing. This investment ensures that we also in the future can be in the forefront when it comes our customer offering," says Peter Torstensson, Head of Corrugated Nordics, Division Packaging Solutions.
International Paper, the largest North American containerboard producer, has begun informing US customers of a $50/ton containerboard price increase for Oct. 1, a couple converters told RISI. The increase would be the first on linerboard and medium in the US market since the last $50/ton price hike about three and a half years ago in the spring of 2013.
Total European shipments of graphic papers was down 4.2% in June 2016 compared to June 2015 and is down 9.7% year-to-date. Total European shipments of newsprint was flat June 2016 compared to June 2015 and is down 3.0% year-to-date. Total European shipments of sc-magazine was UP 6.3% in June 2016 compared to June 2015 and is UP 2.9% year-to-date. Total European shipments of coated mechanical reels was down 11.4% in June 2016 compared to June 2015 and is down 8.6% year-to-date. Total European shipments of uncoated mechanical (improved & others) was down 2.0% in June 2016 compared to June 2015 and is down 6.4% year-to-date. Total European shipments of coated woodfree was down 11.8% in June 2016 compared to June 2015 and is down 6.9% year-to-date. Total European shipments of uncoated woodfree was down 9.7% in June 2016 compared to June 2015 and is down 6.1% year-to-date.
Berry Plastics Group, Inc. and AEP Industries Inc. have entered into a definitive merger agreement under which Berry will acquire all of the outstanding shares of AEP in a cash and stock transaction. AEP is a leading manufacturer of flexible plastic packaging films in North America. AEP manufactures and markets a diverse line of flexible plastic packaging products for consumer, industrial, and agricultural applications. The transaction is expected to be completed in the December 2016 quarter, subject to the approval of AEP shareholders and customary closing conditions, including applicable regulatory approvals.
Over the objections of big box retailers who want you to collect for more than 10,000 different tax jurisdictions, a reasonable approach has emerged from the House Judiciary Committee and its Chairman Bob Goodlatte (R-VA-6th). The Committee is releasing a discussion draft of its legislation later this week, and it is imperative that this draft get a strong showing of industry support. The Online Sales Simplification Act (OSSA) is the best approach we have seen to definitively put to rest sales tax collection issues for remote sellers. A summary of this bill can be found here. Every other alternative is not workable. This year, states have become increasingly aggressive trying to force remote sellers into a myriad of new nexus thresholds. But clarifying federal legislation would simplify matters overnight and bring true parity between various types of sellers. click Read More below for additional detail
Fourth Quarter Highlights: Total revenues increased 2.7 percent to $234.4 million, compared with $228.3 million in the prior year period. Adjusted EBITDA*, excluding stock-based compensation, was a loss of $3.0 million, compared with a loss of $1.8 million in the prior year period. GAAP EPS was a loss of $0.17 per share compared with a loss of $0.16 per share in the prior year period. Adjusted EPS*was a loss of $0.14 per share compared with a loss of $0.13 per share in the prior year period. click Read More below for additional detail