Net Sales for the third quarter were $532 million, down 0.2% or $1 million, year over year. The net sales decrease was driven by a $6 million decrease in our Education segment, partially offset by a $5 million increase in our Trade Publishing segment. Within our Education segment, which includes our Basal business and our Extension businesses, the decline in year over year net sales was attributable to our Basal business, inclusive of international sales, which declined by $6 million from $301 million in 2016 to $295 million. Billings for the third quarter of 2017 were $584 million, down 6% or $36 million compared with $620 million for the same period in 2016. The decrease was driven by a $41 million decrease in our Education segment billings, slightly offset by a $5 million increase in our Trade Publishing segment billings. Within our Education segment, the decline in year over year billings was attributable to our Basal business, inclusive of international sales, which declined by $27 million from $338 million in 2016 to $311 million. Net income of $91 million in the third quarter of 2017 was slightly higher compared to a net income of $90 million in the same quarter of 2016, due primarily to the same factors impacting operating income offset by an unfavorable change in our income tax benefit of $5 million, from an income tax benefit of $16 million for the same period in 2016 to an income tax benefit of $11 million in 2017, primarily related to a change to our estimated annual effective tax rate during the prior year period. Click Read More below for additional information.
The U.S. Government Publishing Office (GPO) Director Davita Vance-Cooks has announced her departure from federal service to accept a job in the private sector. By law, GPO Deputy Director Jim Bradley assumes the duties of Acting GPO Director until a replacement is appointed. Vance-Cooks was nominated by President Obama and confirmed by the Senate in 2013 to be the 27th Public Printer of the United States. Prior to confirmation, she served as Acting Public Printer for 19 months. A seasoned business executive with more than 35 years of private sector and federal management experience, she was the first woman and the first African-American to lead the agency. In 2014, legislation proposed by Vance-Cooks was signed into law modernizing the GPO’s name to the Government Publishing Office, in recognition of the agency’s successful transition to digital publishing technologies. That law also abolished the outdated title of “Public Printer,” renaming GPO’s chief executive as the agency’s Director. Click Read More below for additional information.
Rayonier Inc. reported third quarter net income attributable to Rayonier of $24.7 million, or $0.19 per share, on revenues of $177.9 million. This compares to net income attributable to Rayonier of $39.4 million, or $0.32 per share, on revenues of $171.4 million in the prior year quarter. The prior year third quarter results included $1.2 million of costs related to shareholder litigation.1 Excluding this item, pro forma net income2 was $40.6 million, or $0.33 per share, in the prior year period. Third quarter operating income was $39.3 million versus $49.7 million in the prior year period. Prior year third quarter operating income included $1.2 million of costs related to shareholder litigation.1 Excluding this item, pro forma operating income2 was $50.9 million in the prior year period. Third quarter Adjusted EBITDA2 was $69.9 million versus $87.2 million in the prior year period. The decline in Adjusted EBITDA2 relative to the prior year period was primarily due to lower real estate results, as the prior year period included a $48.3 million sale comprised of 17,772 acres in Georgia. Click Read More below for additional information.
Sappi North America, a leading producer and supplier of diversified paper and packaging products, has revealed its newest promotional resource for brand managers, “The Five Second Rule”. With only five seconds to convince a customer to read a piece of direct mail, first impressions are critical. Printed on Sappi’s multiple web cover grades, Opus and Somerset, the kits come in a stunning exterior envelope, designed to illustrate direct mail’s ability to instantly stand out and create a memorable experience so that consumers are driven to take action. Inside, readers will find inspiration for making collateral that resonates with four unique direct mail examples. Direct mail is the preferred method of brand communications for consumers aged 18-34[i], with marketing representing more than half of the total mail volume in the U.S.[ii] Together, these figures illustrate the immense need for businesses to employ thoughtful, targeted and high-quality direct mail campaigns that will stand out. Click Read More below for additional information.
Sun Chemical has acquired the assets and business of Transitions Digital Graphics, LLC. Based in Santa Barbara, Calif., Transitions Digital Graphics is a leader in the development of changeable advertising signage and displays which utilize invisible ink. “Transitions Digital Graphics is a technology company with a compelling advertising display solution that brings an interactive visual experience for consumers,” said Mehran Yazdani, President of Sun Chemical Advanced Materials. “This acquisition will strengthen our strategic initiative in electronic packaging by providing exciting new solutions in point of sale advertising. It also supports our strategy of continued expansion into sustainable high growth, high value markets.” Click Read More below for additional information.
Summary Results: Net earnings improved during the third quarter of 2017 to $20 million, a $9 million year-over-year increase, despite a 4.8% decrease in net sales to $1.0 billion. Organic sales decreased 3.7% due to ongoing industry volume and pricing pressures after excluding pass-through paper sales (-1.2% impact) and foreign exchange (+0.1% impact), and is consistent with the Company’s previous guidance. Diluted earnings per share for the third quarter of 2017 improved to $0.38 compared to $0.22 in 2016 primarily due to lower depreciation and amortization, and cost reductions and productivity improvement activities. Third quarter 2017 Non-GAAP Adjusted EBITDA decreased to $116 million compared to $122 million in 2016; however, due to ongoing productivity improvements and sustainable cost reductions, the Company was able to keep Adjusted EBITDA margin flat year-over-year at 11.5%. Net earnings improved for the nine months ended September 30, 2017, to $52 million, a $45 million increase from 2016, despite a 5.2% decrease in net sales to $3.0 billion. Organic sales decreased 3.7% due to ongoing industry volume and pricing pressures after excluding pass-through paper sales (-1.4% impact) and foreign exchange (-0.1% impact). Diluted earnings per share improved to $1.01 during the nine months ended September 30, 2017, compared to $0.15 in 2016. Year-to-date Non-GAAP Adjusted EBITDA was $334 million, a 1.8% decrease from 2016, and Adjusted EBITDA margin improved to 11.2% as compared to 10.9% in 2016. Click Read More below for additional information.
Third Quarter 2017 Highlights: Net sales in the quarter were $1.73 billion, up $9.3 million or 0.5% from the third quarter of 2016. On an organic basis, consolidated net sales decreased 0.4% driven by volume growth in the International and Strategic Services segments and favorable changes in fuel surcharges which were more than offset by net volume declines in the Variable Print segment, lower postage pass through sales in the Strategic Services segment and modest price erosion across all segments. Gross profit in the third quarter of 2017 was $324.4 million or 18.7% of net sales versus $364.2 million or 21.1% of net sales in the prior year quarter. The positive impact from our cost reduction initiatives was more than offset by an OPEB curtailment gain in the prior year period and unfavorable mix, modest price pressure, start-up costs related to a new facility in Asia and higher costs of transportation as a result of the hurricanes in the current period. Click Read More below for additional information.
Stora Enso has divested 100% of its shares in the Finnish Puumerkki Oy and the Estonian Puumerkki AS to Mimir Invest AB, a global investment firm. Puumerkki is a specialised wholesaler of wooden building materials and was 100% owned by Stora Enso. This divestment supports Stora Enso’s Wood Products division in focusing on its growth strategy and further build on the strength of the premium portfolio of products and services. Puumerkki’s wholesale business does not belong to Stora Enso’s core business. The new owner is in a better position to give Puumerkki the attention it deserves and ensure its long-term development. Puumerkki will continue to be a key customer for Stora Enso’s renewable building materials also going forward. Click Read More below for additional information.
January–September 2017 (1–9/2016) • Sales were EUR 3,712 million (3,483). • Operating result was EUR 397 million (333). Comparable operating result was EUR 381 million (332). • Result before tax was EUR 345 million (275). Comparable result before tax was EUR 330 million (275). • Comparable return on capital employed was 11.2 per cent (10.5). Comparable return on capital employed excluding investments related to the bioproduct mill was 14.0 per cent (11.9). • Cash flow from operations was EUR 611 million (298). July–September 2017 (7–9/2016) • Sales were EUR 1,260 million (1,143). • Operating result was EUR 143 million (107). Comparable operating result was EUR 134 million (103). • Result before tax was EUR 109 million (89). Comparable result before tax was EUR 100 million (85). • Comparable return on capital employed was 10.8 per cent (9.8). Comparable return on capital employed excluding investments related to the bioproduct mill was 13.7 per cent (11.1). • Cash flow from operations was EUR 420 million (177). Click Read More below for additional information.
January–September 2017 (1–9/2016) • Sales were EUR 1,397.3 million (1,298.5). • Comparable operating result was EUR 139.1 million (104.7), or 10.0 per cent (8.1) of sales. The operating result was EUR 152.7 million (93.8). • Comparable earnings per share were EUR 0.27 (0.21), and earnings per share were EUR 0.30 (0.18). • Comparable return on capital employed was 10.6 per cent (8.3). July–September 2017 (4–6/2017) • Sales were EUR 478.6 million (474.2). • Comparable operating result was EUR 50.4 million (43.5), or 10.5 per cent (9.2) of sales. The operating result was EUR 60.6 million (46.9). • Comparable earnings per share were EUR 0.08 (0.09), and earnings per share were EUR 0.11 (0.09). • Comparable return on capital employed was 11.5 per cent (10.3). Click Read More below for additional information.