Cenveo Announces 3Q Results, Plans Cost Reductions
Cenveo Inc. announced its results for the third quarter and nine months ended Sept. 30. For the third quarter, Cenveo incurred a net loss of $64.1 million compared to 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 to $428.1 million in 2004. For the nine months ended Sept. 30, Cenveo reported a net loss of $97.2 million compared to a net loss of $16.1 million for the same period in 2004.
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 ensure that, 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." Full story (PDF File).
Consolidated Graphics to Acquire Group of Commercial Printers
Consolidated Graphics Inc. announced that it signed a letter of intent to acquire an affiliated group of commercial printing companies operating as Nies/Artcraft Printing, Valcour Printing and Impression Label in St. Louis. The transaction is expected to be completed by Dec. 15. 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 financial results for its second quarter and six months ended Sept. 30. Revenue for the September quarter was $221 million compared to $191.1 million a year ago. Net income for the September quarter was $9.3 million compared to net income of $7.6 million a year ago.
Webb/Mason Reports Record 3Q Sales
Webb/Mason reported record sales of $7.5 million for the month of September 2005, a 47 percent increase for the same month in 2004. The company's 2005 third-quarter sales are up 24 percent compared to 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 increase in clients' marketing projects.
Boise 3Q Results
Boise Cascade Company reported income from operations of $79.4 million for third-quarter 2005, compared to $79.9 million for the same period a year ago. In second-quarter 2005, Boise reported income from operations of $77.4 million. Boise reported net income of $28.5 million in the third quarter of 2005.
HP Completes Scitex Vision Acquisition
HP completed the acquisition of almost all Scitex Vision assets for $230 million from Scitex Corporation Ltd. This strengthens HP's position in industrial wide-format printing, which includes signage and industrial applications such as billboards, banners, street advertising and packaging. The agreement was signed in August. HP has acquired businesses principally located in the United States, Belgium, China, Israel, Mexico and South Africa, and will integrate them into its Imaging and Printing Group.
R.R. Donnelley Q3 Earnings Fall
R.R. Donnelley & Sons Company reported third quarter 2005 earnings from continuing operations of $127.3 million on net sales of $2.2 billion compared to earnings from continuing operations of $116.7 million on net sales of $1.9 billion in the third quarter of 2004.
Higher 3Q Profit for John H. Harland
John H. Harland Company said its consolidated net income for the quarter was $18.6 million compared to $12.1 million for the same period in 2004. Consolidated sales for the quarter were $260.7 million, a 33 percent increase from the 2004 third quarter.
SAGE is AIA Preferred Service Provider
SAGE® | Quick Technologies Inc. announced that it's the Primary Preferred Service Provider for Adventures in Advertising (AIA) franchise owners and affiliates. SAGE customized its web and research tools to match the needs of AIA franchise owners and affiliates. Subscribers can access a searchable database that contains latest information from AIA's MVP suppliers along with an AIA-only product code for each item.
Ward/Kraft Announces Winners
Ward/Kraft Inc. announced winners of its 2004-2005 Vacation Sales Incentive giveaway. MaverickLabel.com, Edmonds, Wash., won a trip for placing new orders in excess of $100,000 since the program launch in September 2004. MaverickLabel.Com CEO Mark Trumper and President Rick Kent opted to donate the $3,000 voucher to the Red Cross Hurricane Relief Fund. Brian Wiedenmann of US Print & Resource Management also won a trip for placing new orders in excess of $100,000. Wiedenmann won a 7-day, 6-night trip to either a Sandals or a Beaches resort or aboard a Carnival Cruise Lines' ship.
Corporate Express Announces New Diversity Partner
Corporate Express Inc., a Buhrmann company, announced that it has partnered with a new diversity supplier, Facility Supply Group Inc.. Facility Supply Group provides a full range of office supplies, business furniture, computer products, shipping and mailing supplies, print services, promotional products, facility maintenance and safety supplies. The partnership provides Corporate Express customers with a broad selection of diversity products at competitive prices, the company said.
SOLUTION OF THE WEEK
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Folder Reinforces Roofer's Reputation
After Hurricane Ivan ripped across Florida's panhandle in September 2004, approximately 40,000 homes in the state's two most western counties, Escambia and Santa Rosa, had damaged or missing roofs. "Everybody needed help from roofing companies, and there just weren't enough reputable ones," says Joe Webb, vice president of sales and marketing for Formsystems Inc., a distributorship in Pensacola, Fla. Full story.
TOP TEN
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Here are this week's top unusual source requests received by DMIA:
- Imprinted foot files that remove dry skin from heels; QTY=100-500
- Patient Sign-In Sheet
- Aluminum Labels; applied to metal parts for an aircraft repair facility; QTY=2500
- Gift Baskets
- Manufacturers of Fox Whistles
- US; 8 1/2 x 16 7/8; 4 parts; Dry Gum-ply 1; 19 full perfs; 2 partial perfs; NCR; QTY=73M
- Hospital Admission Bracelet; QTY=5M
- Fund Raising Calendar; 12 envelopes stitched to backer; different return address on each envelope; many plate changes; QTY=8M
- Imitation Bricks; molded plastic pieces; for landscape company to create brick wall; QTY=30M pcs. of various products
- Laser labels; function similar to transfer tape; adhesive is sandwiched between two liners; when label is applied, the face stock can be lifted away while adhesive adheres to product; QTY=1M
If you have a source request—for anything—call the Hotline at (800) 333-2828 between 9 a.m. and 5 p.m. Eastern Time, or use the Source Hotline Database online. For new sales ideas every day, try our 1,000 Sales Ideas Database. Manufacturers, if you produce any of these items and would like to check your listing with the Source Hotline, please email Cheryl Rush.
