Spectrum Printing & Graphics Joins Two Sides

A study released today by R.R. Donnelley & Sons Company revealed how consumerization and COVID-19 have contributed to increased demand for diagnostic test kits delivered to consumers’ homes. Nearly all of the relevant supply chain decision makers surveyed (97%) noted an increase in demand for at-home testing over the last two years. Of that group, a vast majority (95%) feel fairly confident about meeting this demand and most (95%) are looking for the right outsourcing partners to do so. RRD surveyed 200 supply chain professionals with decision-making power to understand what’s fueling the increase in at-home testing diagnostics and how well equipped organizations are to accommodate that growth on the heels of global supply chain disruption. Findings from the Diagnostic Drivers Report show heightened consumer expectations such as faster delivery timelines and the convenience of testing from home are driving growth in the at-home testing market.

*Reported Net Sales of $700 million in the third quarter of 2023 compared to $830 million in the third quarter of 2022, and Net Loss of $3 million in the third quarter of 2023, or $0.06 diluted loss per share, compared to Net Earnings and diluted earnings per share of $14 million and $0.27 in the third quarter of 2022, respectively. *Increased Net Cash Provided by Operating Activities by $71 million for the nine months ended September 30, 2023, compared to the same period in 2022. *Increased Free Cash Flow by $61 million for the nine months ended September 30, 2023, compared to the same period in 2022, including $27 million of Free Cash Flow generation in the third quarter of 2023. *Reduced Net Debt by $132 million over the last 12 months to end the third quarter with a Debt Leverage Ratio of 2.36x, which is within the company’s long-term targeted leverage range of 2.0x – 2.5x.

FCL Graphics, located in suburban Chicago, has upgraded two of their commercial web offset presses with color control and ink delivery technology from Baldwin Vision Systems. Technology upgrades on these first two full-web presses resulted in significantly higher print quality and an immediate 50% reduction in waste. Based on these results, a third upgrade on a half-web press is scheduled for August of 2021. According to Kurt Kunde, FCL’s Vice President of Operations, “We have presses that have been in operation for 15-18 years and are mechanically very sound. We basically scrapped everything on the machines from a controls standpoint, replaced it with the Baldwin Vision Systems technology, and made them brand new presses overnight.” The full-web presses are Harris M1000s and the half-web press scheduled for upgrade in August is a Harris M110B. “Our very experienced press operators love the systems,” said Mr. Kunde, “and because the interfaces are so easy to use, we’re able to train new operators more quickly.”