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Solutions December 2005
INDUSTRY
NEWS
Cenveo
Announces 3Q Results, Cost Reductions
Cenveo
Inc., Englewood, Colo., incurred
a net loss of $64.1 million for
its third quarter ended Sept.
30, compared with a net income
of $2.5 million in the third quarter
of 2004. Net sales for the quarter
were slightly higher at $430.8
million, compared with $428.1
million in 2004. For the nine
months ended Sept. 30, Cenveo
reported a net loss of $97.2 million,
compared with a net loss of $16.1
million for the same period last
year.
Robert
G. Burton, chairman and CEO, said,
“Over the past two months,
we have analyzed the company’s
business and reviewed each cost
center to identify excess costs
and areas for improvement. I now
feel comfortable that after initiating
a number of significant actions
in support of my commitment, we
are well on our way to achieving
at least $75 million of cost reductions
by the end of 2006.” To
that end, Cenveo is centralizing
its general and administrative
functions, consolidating its vendor
base, implementing companywide
purchasing initiatives, streamlining
IT processes and infrastructure,
consolidating plants and more.
Burton
said, “We have also decided
to evaluate the sale of our Canadian
operations. Our longstanding success
in Canada, combined with current
market conditions, presents a
unique opportunity that may help
us to realize the substantial
value of our Canadian assets.
Although there can be no assurance
that we will be able to complete
such a sale on acceptable terms,
we believe that a successful transaction
would enable us to de-leverage
the balance sheet and provide
an opportunity to redeploy capital
that will generate additional
growth opportunities domestically.”
Consolidated
Graphics to Acquire Group of Commercial
Printers
Consolidated
Graphics Inc., Houston, signed
a letter of intent to acquire
an affiliated group of commercial
printing companies operating as
Nies/Artcraft Printing, Valcour
Printing and Impression Label.
The transaction is expected to
be completed this month. Nies/Artcraft
specializes in medium to long
run sheet-fed and web printing.
Valcour specializes in short run,
small-format sheet-fed and digital
printing. Impression Label specializes
in flexographic label printing.
The companies also offer print-related
services, including fulfillment.
Additionally,
Consolidated Graphics announced
second-quarter revenue of $221
million, compared with $191.1
million a year ago.
Webb/Mason
Reports Record 3Q Sales
Webb/Mason,
a distributorship based in Hunt
Valley, Md., reported monthly
record sales of $7.5 million in
September 2005, a 47 percent increase
over the same month in 2004. The
company’s 2005 third-quarter
sales are up 24 percent compared
with the same period in 2004.
Webb/Mason said the growth was
due to a combination of factors,
including multiple office openings,
sales staff expansion, new customers
and an increased marketing-related
business.
Koch
Industries to Acquire Georgia-Pacific
Georgia-Pacific
Corp., Atlanta, and Koch Industries
Inc., Wichita, Kan., reached a
definitive agreement for Koch
Forest Products Inc. to make a
$48 per share cash tender offer
for all Georgia-Pacific shares.
Koch
said that Georgia-Pacific will
operate as a privately held, wholly-owned
subsidiary of Koch Industries.
Georgia-Pacific will continue
to do business under the Georgia-Pacific
name and operate its businesses
from its Atlanta headquarters
as an independently managed company.
Included in the transaction are
assets of Georgia-Pacific, including
its North American and international
consumer products segments, as
well as its building products,
packaging, and paper and bleached
board segments.
Private
Sector Offers $500M Services to
Federal Agencies
The
U.S. Government Printing Office
released its list of the top 10
federal agencies that obtained
electronic and print-related products
and services in fiscal 2005,
when private sector companies
provided approximately $500 million
worth of communication goods and
services to federal agencies:
Sonoco
to Close Packaging Printing Plant
Sonoco,
Hartsville, S.C., announced that
it will close its flexible packaging
printing plant in Charlotte, N.C.,
as part of the company’s
previously announced cost-reduction
plans. It will close the plant
by the end of the first quarter
of 2006. The operation employs
67 workers and primarily prints
flexographic images on packaging
film. Sonoco will offer outplacement
assistance to employees.
