Survey: Print Markets Recovering
Printers are beginning to experience a definite rebound for print sales and are increasingly optimistic about the economy, according to Printing Industries of America (PIA), a trade association that represents more than 13,000 printing firms.
Printers responding to PIA's Monthly Print Market Survey in March estimated that their March sales would increase an average of 2.6 percent compared with February. Their projections were based on customer inquiries and purchase orders. Survey respondents projected an average sales increase of 3.9 percent during the next 12 months. Approximately 75 percent of respondents projected sales gains; 15 percent projected declines.
"Our forecast projects that second-quarter sales will be about even with last year's second quarter," said Dr. Ron Davis, chief economist for PIA. "We'll see growth of 2 percent in the third quarter and 3 percent in the fourth." If that holds true, approximately $165 billion in print sales will be generated during the second quarter of 2002 through the first quarter of 2003.
According to another PIA study, U.S. paper production declined 5.8 percent in 2001 after falling 2.5 percent in 2000. Overall, printing and writing paper prices fell approximately 1 percent in 2001.
Earnings Up at Ennis
DeSoto, Texas-based manufacturer Ennis Business Forms Inc. reported earnings of $3.6 million for its fourth quarter ended Feb. 28, more than doubling its earnings during the same quarter last year. Fourth-quarter net sales slid 1.2 percent to $58.9 million. Ennis' fiscal-year earnings increased 13.6 percent to $15 million, and fiscal-year sales rose 3.4 percent to $236.9 million.
Ennis said its Promotional Solutions Group and Financial Solutions Group (Northstar Computer Forms Inc.) exceeded internal expectations, offsetting revenues and earnings declines in its Forms Solutions Group.
"As the year began, we had no idea of the economic climate and business challenges that would face us during the 2002 fiscal year," said Keith Walters, Ennis' chairman and CEO. "In this cautious environment, our planned internal focus for the year proved to be a prudent strategy."
Ennis, which ranked No. 2 on the Top 100 Manufacturers list in the April issue of Print Solutions, operates 29 production facilities in 12 states.
Webb/Mason Opens Richmond Office
Webb/Mason, a Hunt- Valley-based distributorship and enterprise print management provider, announced the opening of a new regional office in Richmond, Va. Howard Wilkes, a senior sales executive at the company, will be responsible for the office.
"Although Webb/Mason has had an established regional office in the northern Virginia and Washington, D.C., area for the past five years, customer requirements and the explosive growth of the Richmond area clearly warrant an office in Richmond," said Warner Mason, president of Webb/Mason.
Webb/Mason provides customers with an online enterprise print management center (called EPM Online) that allows users to streamline their procurement of printed and branded materials. The firm operates 11 offices throughout the United States as well as distribution centers in Baltimore, Chicago, Houston and Greenville, S.C.
Mail-Well Lowers First-Quarter Earnings Estimate
Englewood, Colo.-based manufacturer Mail-Well Inc. expects first-quarter 2002 earnings before restructuring charges to be 2 cents to 4 cents per share, below previous forecasts of 6 cents to 8 cents per share. The company said the change is a result of lower-than-expected revenues and margin erosion. The firm expects to achieve first-quarter sales of approximately $368 million.
Mail-Well's label and printed office products segments and other assets held for sale are performing "well and on plan," according to the company. The company completed the divestiture of Curtis 1000 in late February.
FMDS Posts Record Sales
Reno, Nev.-based software and e-commerce supplier Forms Management Data Systems (FMDS), reported a 60 percent sales increase in March, the largest monthly increase in the company's history.
FMDS, which develops distributorship print management system Quantum 2000 and Q-Net software, says the achievement exemplifies the industry's belief that increased technology and access to alternate products, such as office supplies and promotional products, is the way to stay competitive. FMDS has achieved consistent annual sales growth for the past three years.
"E-commerce is the way to attract and retain clients today," says Ross Barker, president of FMDS and DMIA's 1989-90 president. "We also are seeing renewed optimism among our clients and prospects. People who had deferred purchase of new technology are more confident now."
