UPFRONT
Cenveo Plans Cost Savings
ENGLEWOOD, CO—Cenveo announced a comprehensive plan to reduce operating expenses and streamline management functions, a plan that includes the elimination of about 125 jobs—mostly managerial positions. Through these moves, the company expects to save $9 million in 2005 and generate annual savings of $20 million. After having his May 6 formal proposal to take over Cenveo rejected, veteran print executive Robert Burton of Burton Capital Management informed the troubled printer that he will seek a special meeting of shareholders with the intention of removing the existing board members and replacing them with a slate that will "affirmatively act in the best interests of Cenveo's shareholders."
Margolis, 76, a Financial Guru
BALA CYNWYD, PA—Harris Margolis, 76, whose PIA Ratio studies enabled printers to measure their profitability against competitors for more than 40 years, passed away May 4. Mr. Margolis had been working at his accounting and financial consulting firm, H.R. Margolis Co., until two weeks before his death. He also wrote a number of books aimed at the commercial printing industry and created a printing industry hourly-cost-rate system.
SWOC Files Paper "Fixing" Suit
CHICAGO—Commercial web printer Service Web Offset (SWOC) has launched a class action lawsuit against a host of magazine paper providers, charging a conspiracy among the companies to fix prices, as well as other offenses. SWOC seeks treble damages, injunctive relief and attorney's fees/costs for itself and "all others similarly situated" who purchased magazine paper from the defendants during the period of January 1, 1990, through May 31, 2004.
Donnelley Secures Large Deals
CHICAGO—RR Donnelley recently signed a trio of long-term contracts, including an extension of the agreement to produce all of R.H. Donnelley's current telephone directories, worth $400 million. RRD also captured a $280 million, multi-year accord to print magazines and books for Meredith Corp. Finally, Donnelley netted a $60 million, multi-year deal to produce the entire stable of magazine titles by Penton Media, a business-to-business publisher of about 50 titles.
Heidelberg Reaches Costs Pact
HEIDELBERG, GERMANY—In an effort to bolster its German manufacturing facilities, Heidelberger Druckmaschinen AG's management board and employee representatives reached a three-year agreement that will generate substantial cost savings without reducing its workforce. The pact, which runs through March of 2008, is expected to save the company about Euro 100 million.
St Ives Burrups Changes Name
PHILADELPHIA—Financial printer St Ives Burrups has changed its name to St Ives Financial, in an effort to support a major expansion program targeting key U.S. financial companies.
Vallis Forms Plants Closed Down
DALLAS—The end has come for Vallis Forms Service, a $57 million printer with locations in Baltimore; Glendale Heights, IL; and Cherryvale, KS. The forms portion of MLC Holding has been shuttered, costing approximately 200 employees their jobs. In making this move, the company cited a poorly performing business forms market. MLC's Metro Label division, with locations here, in Atlanta and Los Angeles, will remain in business.
Berlin Names New President
CAROL STREAM, IL—Tina Tromiczak has been named the new president of Berlin Industries. Formerly a senior vice president of operations for RR Donnelley's financial print business, Tromiczak replaces Ed Majerczak, a 28-year employee of Berlin who was promoted to vice chairman.
Hillsboro Changes Ownership
TAMPA, FL—Hillsboro Printing, a full-service commercial printer with $10 million in annual sales, has been sold by owner Leonard Levy to a group of investors that include two current employees. The new ownership group consists of Dick Lange, who becomes president; Jerry Bray, who assumes the role of executive vice president; and Brad Albertson, vice president of sales. The transaction was facilitated by Harris DeWese of Compass Capital Partners.
ColorGraphics Mourns Death
LOS ANGELES—Terry Bell, a familiar face within printing industry circles and former vice president of ColorGraphics, passed away at the age of 62. Mr. Bell was a longtime partner with his friend and current ColorGraphics president, Chris Madison. He joined ColorGraphics in 1978 after a stint as vice president of Continental Graphics. He is survived by his wife, Linda, two children and four grandchildren.
Printer Found Guilty of Lying
PHILADELPHIA—Janice Knight, owner of the RPC Unlimited printing company, was among the five defendants found guilty in the city's pay-to-play trial that targeted corruption in city hall. Knight was found guilty of lying to the FBI. However, the jury didn't return a verdict on a conspiracy count against Knight. The trial centered around former Philadelphia city treasurer Corey Kemp, who was found guilty on 27 charges.
Bowater Invests in Specialty
GREENVILLE, SC—Bowater Inc. and its board of directors have approved an $80 million capital investment to convert approximately 200,000 metric tons of annual newsprint production at its Calhoun, TN, mill to higher-margin specialty grades. The project is expected to be completed by mid-2006.
Monarch Heads GPO Q1 List
WASHINGTON, DC—With $9.3 million in Government Printing Office (GPO) revenues, Monarch Litho, of Montebello, CA, garnered the top spot among government printers for the first quarter of 2005, according to a list released by the GPO. Von Hoffmann Corp., of St. Louis, was second with $7 million.
