Upfront 2-01
Bowne Reveals Cost Reductions
NEW YORK—Bowne & Co. revealed it will take additional steps in its cost reduction program that are expected to result in reductions in fixed and variable costs of more than $20 million in 2001. The cost-cutting initiatives are further realignments in manufacturing and composing operations, elimination of certain underutilized resources and a roughly 3 percent worldwide staff reduction through attrition, layoffs and reassignments. Bowne estimates that the related restructuring expenses will result in a fourth quarter pre-tax charge to earnings of less than $2 million. The company previously announced $7 to $9 million in annual cost savings, resulting from the combination of the Internet unit, Immersant, and Bowne Global Solutions' content business unit.
Executive Changes at Mail-Well
ENGLEWOOD, CO—Gerald Mahoney has retired from his post as chairman, CEO and a director with Mail-Well. Following Mahoney's departure, the company's board of directors promoted Paul Reilly from the position of president and COO, to the post of president and CEO. He is also a director. Tom Stephens, a director of the company's board, was elected chairman.
Court OKs Master Graphics' Plan
MEMPHIS, TN—Master Graphics has been given the OK on its reorganization plan by the U.S. Bankruptcy Court, and has also approved the sale of three non-core divisions valued at approximately $18 million. Proceeds from the sale will be used to reduce the company's secured bank debt. Under terms of the plan, Master Graphics' secured bank debt will be refinanced and the general unsecured creditors of Premier Graphics—the company's wholly owned operating subsidiary—will receive all the common stock in the reorganized Master Graphics. Existing common stock will be canceled.
CG Lands New Credit Deal
HOUSTON—Consolidated Graphics has entered into a new, $225 million secured credit facility with 11 banks, led by First Union National Bank. The new credit facility is composed of a $50 million, five-year term loan and a $175 million, five-year revolving credit line. The size of the combined facility may be increased to $275 million by adding other lenders at a later date.
Holtz to Speak at WOA Event
WASHINGTON, DC—Legendary college football coach Lou Holtz, who led Notre Dame to gridiron glory, has been tabbed by the Web Offset Association (WOA) as its keynote speaker for the 49th annual spring conference held here May 6 to May 9. Holtz, currently head coach for the University of South Carolina, is considered one of the finest motivational speakers in America. He has also authored two best-selling books. The theme for the conference is "Knowledge for Today...Opportunities for Tomorrow." The program will consist of general and concurrent sessions with topics including business management, print process control, technology, self-development and e-space tracks, along with tutorials.
NPG Divests Display Division
MILWAUKEE—NorthStar Print Group has divested its display division in order to strengthen its strategic focus on growing its core label business. The company's large-format sheetfed operation in Milwaukee was sold to Kubin-Nicholson, another Milwaukee-based printer serving the same markets.
Wicklander Enters Card Market
CHICAGO—Wicklander Printing has created a plastics affiliate, Trivista Plastics. The company, slated to go into full operation in May, will offer a complete plastic and paper printing solution, as well as fulfillment services. Robert Anderson, a 25-year printing industry veteran, has been named president of the company. Trivista will boast an expansive prepress area with full digital capabilities and direct-to-plate technology.
Clinton Signs 2001 GPO Funds
WASHINGTON—Outgoing President Bill Clinton signed into law the Government Printing Office appropriations of slightly more than $99 million for fiscal year 2001. This represents a nearly 4 percent decrease from the $103 million that was approved for fiscal year 2000. GPO appropriations have declined 13 percent in the past five years.
Ward Leaves R.R. Donnelley
CHICAGO—R.R. Donnelley & Sons reports Jonathan P. Ward has resigned as president of the company to become president and CEO of ServiceMaster. William L. Davis, who has served as chairman and CEO since 1997, will assume the role of president. Ward joined R.R. Donnelley in 1977 and held a number of sales and operations posts prior to becoming president in 1997. In other company news, Donnelley announced that it expects year 2000 earnings per share to be lower than previously anticipated. Donnelley lowered the range to $2.15 to $2.20 per share, from the high $2.20s to lower $2.30s. These ranges include a 6 cent one-time gain disclosed in the third quarter of 2000. The company attributes the majority of the shortfall from previous expectations for its logistics business, R.R. Donnelley Logistics, which experienced higher outsourced transportation and fuel costs, as well as higher costs to meet service commitments.
PI 400 Clarification
Subsequent to staff editor Caroline Miller's article, "Catalogs: Riding the e-Wave," that appeared in the December 2000 Printing Impressions 400 issue, a qualifying statement needs to be made. Our ranking of the Top 10 Catalog Printers was based solely on the data received directly from those companies listed. As a result, some of these segment sales figures may be somewhat misleading. It has come to our attention that some commercial print media service companies internally combine advertising inserts for the retail market with their catalog business. It is, and was, the intent of Printing Impressions to report exclusively on the catalog market, not the catalog and retail insert businesses combined. Therefore, our Top 10 Catalog Printers ranking was not in the correct order. Catalogs are a standalone business in the industry, and the largest U.S. supplier is Quebecor World. We apologize for any confusion this may have caused.
