Ahlstrom-Munksjö announces the launch of ViroSēl™. This innovative fabric is constructed for the most critical areas of a surgical gown designed to keep medical professionals protected and comfortable. ViroSēl™ (pronounced Vi-ro-Seal) is Ahlstrom-Munksjö’s next generation Breathable Viral Barrier (BVB) surgical fabric that leverages our decades of experience making innovative fabrics used to keep medical professionals protected and comfortable. ViroSēl™ has a specially formulated design that provides the opportunity to create robust seam seals for highly critical areas of a surgical gown. “We leveraged our BVB product development and manufacturing experience to create a fabric that can be reliably used in the most protective and comfortable surgical gowns on the market” says Jason Beard, product platform leader, Medical, Ahlstrom-Munksjö. Click read more below for additional detail.
WestRock Company and KapStone Paper and Packaging Corporation announced that the U.S. Department of Justice has cleared WestRock’s pending acquisition of KapStone through Whiskey Holdco, Inc. As this was the last antitrust approval required to complete the pending acquisition, WestRock and KapStone expect the pending acquisition to close on November 2, 2018, subject to customary closing conditions. As a result of the acquisition, among other things, Holdco will become the ultimate parent of WestRock, KapStone and their respective subsidiaries. Click read more below for additional detail.
Highlights • Net sales were $1.7 billion, which was 3 percent lower than prior year third quarter, largely due to the adverse impact of the stronger U.S. dollar. • Shipments declined compared with prior year, primarily due to the transfer of production to our joint venture with Constellation Brands and the impact of the poor 2017 grape harvest in Europe. These headwinds were partially offset by price gains, which were reported in all segments. • Earnings from continuing operations before income taxes were $168 million for the third quarter compared with $172 million for the same period in 2017. • Segment operating profit of reportable segmentsP for the third quarter of 2018 was $255 million, $5 million lower than prior year period. Excluding the $9 million adverse impact from foreign currency, segment operating profit was up 2 percent. Click read more below for additional detail.
Quad/Graphics, Inc. and LSC Communications, Inc. announced that their boards of directors have approved a definitive agreement whereby Quad will acquire LSC Communications in an all-stock transaction valued at approximately $1.4 billion, including the refinancing of LSC Communications’ debt. As of September 30, 2018, the combined company would have had annual revenue of approximately $8 billion. STRATEGIC AND FINANCIAL RATIONALE • Creates a highly efficient print platform to fuel Quad’s 3.0 transformation and strengthen the role of print in a multichannel media world. Quad’s 3.0 strategy creates more value for all stakeholders by leveraging a strong print foundation as part of a much larger, more robust integrated marketing solutions offering, and the transaction will broaden Quad’s client base and revenue-generating potential. • Delivers cost- and time-saving opportunities for clients through: ◦ Enhanced production and distribution efficiencies and flexibility from the greater scale of the combined complementary platforms. Click read more below for additional detail.
Net sales in the quarter were $1.65 billion, down $85.4 million or 4.9% from the third quarter of 2017, which included a decline of $106.4 million related to the sale of the Print Logistics business. On an organic basis, consolidated net sales increased 1.8% primarily driven by higher volume in the Business Services segment. Gross profit in the third quarter of 2018 was $315.4 million or 19.1% of net sales versus $323.5 million or 18.6% of net sales in the prior year quarter. The favorable impact of cost reduction initiatives was more than offset by unfavorable mix, modest price pressure and the disposition of the Company’s Print Logistics business. Click read more below for additional detail.
Net sales increased 2.4% during the third quarter 2018 to $1 billion, reflecting the impact of the Ivie & Associates and Rise Interactive investments. Organic sales declined 3.2% after excluding acquisition sales impact of 4.6%, increased pass-through paper sales of 1.6% and a 0.6% unfavorable foreign exchange impact. The organic results reflect ongoing print industry volume and pricing pressures and are consistent with the Company's expectations. Net cash provided by operating activities was $47 million for the first nine months of 2018 compared to $180 million in 2017, and Free Cash Flow was negative $38 million. The year-over-year decline was primarily attributable to expected timing differences in 2018 versus 2017 for cash generated from working capital which includes an intentional build-up of paper inventories that will be reduced in the fourth quarter. Click read more below for additional detail.
Third quarter net sales were $1,015 million, up $80 million, or 8.5%, from the third quarter of 2017. After adjusting for acquisitions, divestitures, changes in foreign exchange rates, pass-through paper sales, and the adoption of new revenue recognition standards, organic net sales decreased 3.0% from the third quarter of 2017. The decrease in organic net sales was largely due to lower volume and price declines in Magazine, Catalogs & Logistics and lower volume in Book, Office Products and our other segments. Third quarter 2018 net loss was $4 million, or $0.12 per diluted share, compared to a net loss of $3 million, or $0.07 per diluted share, in the third quarter of 2017. Third quarter 2018 net loss included after-tax charges of $29 million primarily related to the write-off of a deferred tax asset associated with the disposition of our European printing business and third quarter 2017 net loss included after-tax charges of $28 million, primarily related to goodwill impairment charges. Click read more below for additional detail.
Oil prices rose on Wednesday, recovering some ground after two days of losses, as markets braced for the imposition of U.S. sanctions on Iran next week and stock markets clawed back some of their recent losses. New U.S. sanctions on Iran begin on Nov. 4 and Washington has made it clear to Tehran’s customers that it expects them to stop buying any Iranian crude oil from that date. Imports of Iranian crude by major buyers in Asia hit a 32-month low in September, as China, South Korea and Japan sharply cut their purchases ahead of the sanctions, government and ship-tracking data showed. Click read more below for additional detail.
Cascades PRO is proud to announce the launch of the New Era of Clean at the ISSA Show North America 2018 in Dallas, Texas. Cascades PRO is taking innovation to a new level with the New Era of Clean, a multi-year period of new product introductions designed to raise the bar on hygiene. This year at ISSA Show North America, Cascades PRO will unveil a stunning new family of Cascades PRO Tandem™ dispensers for hand towels and toilet paper, as well as, introduce an expanded range of high-end Cascades PRO Signature™ toilet paper and facial tissue products. Additionally, to support the new innovations, the company will launch the Cascades PRO Make it Easy™ program designed to simplify the ordering and shipping process of dispensers. Click read more below for additional detail.
Mohawk Fine Papers, Inc. is proud to announce the release of A Maker’s Field Guide to Digital Materials and Digital Processes, the latest in a series of comprehensive, printed guides designed to bring inspiration and education to designers, their clients and printers on the importance of choosing the right materials and process for print. “The new Maker’s Field Guide to Digital Materials and Digital Processes is the latest expression of Mohawk’s ongoing commitment to demonstrating the pivotal role materials play in the success of any project designed for print,” said Chris Harrold, Sr.Vice President, Marketing & Creative at Mohawk. “This edition should prove to designers that digital printing is no longer a compromise, but a sophisticated, agile means to produce beautiful print on an impressive range of materials from fine paper to durable synthetics.” Click read more below for additional detail.