Industry Trends Report: Part 2—Sales Expectations
In this four-part series, we’ll take a look at how each indicator from the Monthly Conditions Dashboard is affecting your business based on the survey results from the past 11 months. Charts are also provided to show the trends in an easy-to-read format, so you can benchmark your current market conditions with hundreds of other printers. Where do you expect your sales to go in 2013? Earlier this month in Industry Trends Report: Part 1—Monthly Sales, we told you about printers’ wide swings and recent modestly rising sales based on the Monthly Industry Conditions Dashboard.* This report is a new industry market trends report from our Economic and Market Research department that allows you to plan your business strategies each month. How does it all work? Survey respondents provide information in five principle areas—1) Monthly Sales, 2) Sales Expectations, 3) Profits, 4) Print, and 5) Paper Prices. Current sales and profits are compared to the previous month. Printing prices and paper prices are current-month compared to 12 months earlier. Sales expectations are expectations for next month compared to the current month. Respondents are asked to report the directional change of each of the five key indicators (increasing, decreasing, or no change). We’re taking a little vacation in July, but check back in August to see the latest industry profit trends in Part 3 of the series! The findings you will read are based on May 2012 to May 2013 calculations using a net diffusion index, where the percentage of respondents reporting an increase is subtracted from the percentage of respondents reporting a decrease. The net diffusion index provides a simple snapshot of printers’ market perceptions for each variable. Part 2: Sales Expectations Printers’ sales expectations have also experienced wide swings over the past 13 months and generally are a leading indicator for next month’s sales. The expectations index peaked at 39.6% in February of 2012 after hitting a low of –18.9% in November—one of only three negative readings during the past 13 months. The overall sales expectations index average for the period was 14.6%. In the first quarter of 2013, the monthly sales diffusion index and sales expectations index changed drastically from month to month. The end result was no growth in the first quarter of 2013 according to our Quarterly Print Market Survey. So far the first two months of the second quarter point toward slightly more consistent and moderate growth. Our panel expects the second quarter to end strong with 21% more expecting June sales to be stronger than May sales than those expecting sales in June to decline compared to May. Printing Industries of America members respond to a survey to uncover some of the key areas of their business to develop the Monthly Industry Conditions Dashboard from the Economic and Market Research department. With regular updates on current market trends, printers are better able to benchmark their business, prepare, and make more informed decisions to improve their bottom line. To participate in the May 2013 survey and learn more, go to www.printing.org/surveys. All individual company information will be kept confidential. For questions, contact Ed Gleeson at rdavis@printing.org. *Click here to visit the Monthly Industry Conditions Dashboard—login using the username and password...
read moreDS Smith posts 51% profits increase
The £1.3bn takeover, completed in June 2012, pushed revenues for the newly integrated business up by 86% to £3.7bn (2011: £1.9m). The company also cited underlying volume growth in corrugated box sales for the strong performance. Operating profit increased 77% to £250.9m (2011: £142m). The company also revised upwards its expected cost savings from the acquisition, from £86m to £100m. Group chief executive Miles Roberts said it had been a transformational year for the company. He added: “We have made substantial operating, financial and strategic progress, following the acquisition and successful integration of SCA Packaging, providing a strong platform for further growth. “The ongoing commitment and focus from our employees has enabled us not only to deliver the initial synergies we targeted earlier than expected, but also to identify further synergies across the enlarged business.” Roberts cited substantial earnings growth and confidence in medium-term prospects for the business FTSE 250 for a 36% increase in full-year dividend to 8p (2011: 5.9p) The group figures were however, impacted by the depressed paper market, which resulted in a 26% decline in operating profit for its UK division. Total revenues for the UK arm, comprising its corrugated packaging business, recycling operations and UK paper manufacturing facilities, remained flat at £961m (2011: £960m). Roberts said: “While our core UK corrugated packaging business has delivered a robust performance, revenues for the overall UK division have been impacted by continuing weakness in the paper market, as a result of which, prices and demand have remained subdued.” Focus going forward would be to continue growing the packaging and recycling businesses, while “reducing our exposure to paper manufacturing and disposing of non-core businesses and assets”, he said. Roberts said the current financial year had started well and was in line with expectations. “Continued market share gains, together with the delivery of further synergies underpin our confidence for the future, despite the market backdrop remaining challenging and the expected impact of input cost pressures. “Our strengthened customer proposition will be further enhanced by increased investment in capital expenditure, R&D and new business development. Looking ahead we remain excited about the further growth opportunities for the group,” he added....
read moreDS Smith posts 51% profits increase
The £1.3bn takeover, completed in June 2012, pushed revenues for the newly integrated business up by 86% to £3.7bn (2011: £1.9m). The company also cited underlying volume growth in corrugated box sales for the strong performance. Operating profit increased 77% to £250.9m (2011: £142m). The company also revised upwards its expected cost savings from the acquisition, from £86m to £100m. Group chief executive Miles Roberts said it had been a transformational year for the company. He added: “We have made substantial operating, financial and strategic progress, following the acquisition and successful integration of SCA Packaging, providing a strong platform for further growth. “The ongoing commitment and focus from our employees has enabled us not only to deliver the initial synergies we targeted earlier than expected, but also to identify further synergies across the enlarged business.” Roberts cited substantial earnings growth and confidence in medium-term prospects for the business FTSE 250 for a 36% increase in full-year dividend to 8p (2011: 5.9p) The group figures were however, impacted by the depressed paper market, which resulted in a 26% decline in operating profit for its UK division. Total revenues for the UK arm, comprising its corrugated packaging business, recycling operations and UK paper manufacturing facilities, remained flat at £961m (2011: £960m). Roberts said: “While our core UK corrugated packaging business has delivered a robust performance, revenues for the overall UK division have been impacted by continuing weakness in the paper market, as a result of which, prices and demand have remained subdued.” Focus going forward would be to continue growing the packaging and recycling businesses, while “reducing our exposure to paper manufacturing and disposing of non-core businesses and assets”, he said. Roberts said the current financial year had started well and was in line with expectations. “Continued market share gains, together with the delivery of further synergies underpin our confidence for the future, despite the market backdrop remaining challenging and the expected impact of input cost pressures. “Our strengthened customer proposition will be further enhanced by increased investment in capital expenditure, R&D and new business development. Looking ahead we remain excited about the further growth opportunities for the group,” he added....
read moreMassive claim over Goodhead pension scheme
The group was put into administration in November 2012 ahead of the pre-pack sale to Sun European Partners that resulted in BGP and Stones the Printers becoming part of Polestar. Unsecured creditors were owed more than £72m, and the latest report from joint administrators Allan Graham and David Standish at KPMG details an additional £36.3m claim from the Pension Protection Fund (PPF) against the group’s pension scheme liability. This is a more than three-fold increase on the liability shown in Goodhead’s last accounts, where the figure stated was £10.3m. The administrators said they were “in the process of reviewing this claim”. The most recent actuarial valuation of the Goodhead pension scheme was carried out in June 2009, and it was supposed to be subject to this process every three years. Goodhead’s accounts stated that an update to take into account the requirements of financial reporting standard FRS17 took place in May 2012. If the claim stands the Goodhead Group pension will be one of the largest print-related schemes to enter the PPF. Polestar’s own scheme also ended up there after it was hived-off from the group and then offloaded as part of Sun’s pre-pack takeover deal to buy Polestar in 2011. It had a shortfall of £103m. Goodhead’s trade creditors including paper and ink companies were owed more than £9m. The only money available to them is a share of £195,000 for creditors of BGP, and £48,000 for creditors of Stones the Printers. There is no money available for unsecured creditors of Goodhead Group. The bill from KPMG for the administration costs thus far is more than £250,000....
read morePaperlinx rejigs management and Midlands operations
The three affected branches are Birmingham, Leicester and Nottingham. As part of the restructure, PaperlinX would create a Midlands ‘branch’ at its Moulton Park head office in Northampton. Affected staff were informed last Friday. A collective consultation across the three sites will begin this week with a total of around 80 roles expected to be cut across them and also the Delivery Co logistics arm. An undisclosed number of staff will be offered roles at Moulton Park. According to the company, the restructure of its Midlands operations will have no impact on customers and it will “further improve efficiencies and facilitate a high level of customer service”. Meanwhile, Buxton’s enlarged role means he will take on responsibility for Narrow Format Reels, Graphic & Carton board, Graphical Consumables, WebCo, Precision Publishing, Resellers and Brightstream. This will be in addition to heading up Paperlinx’s UK commercial print operation, which includes the three merchanting brands recently united under the parent brand: Robert Horne, Howard Smith and Paper Co. Buxton will be supported by the operations’ existing management teams, headed up by David Darwood (Precision Publishing), Steve Webb (narrow format reels and graphic and cartonboard), Robin Watkinson (WebCo) and Mandy Gallego (commercial print sales and operations). Buxton will report to Paperlinx UK managing director Phil Carr. “This new structure forms a key part of our mission to ensure a customer-centric business model,” said Buxton....
read morePaperlinx rejigs management and Midlands operations
The three affected branches are Birmingham, Leicester and Nottingham. As part of the restructure, PaperlinX would create a Midlands ‘branch’ at its Moulton Park head office in Northampton. Affected staff were informed last Friday. A collective consultation across the three sites will begin this week with a total of around 80 roles expected to be cut across them and also the Delivery Co logistics arm. An undisclosed number of staff will be offered roles at Moulton Park. According to the company, the restructure of its Midlands operations will have no impact on customers and it will “further improve efficiencies and facilitate a high level of customer service”. Meanwhile, Buxton’s enlarged role means he will take on responsibility for Narrow Format Reels, Graphic & Carton board, Graphical Consumables, WebCo, Precision Publishing, Resellers and Brightstream. This will be in addition to heading up Paperlinx’s UK commercial print operation, which includes the three merchanting brands recently united under the parent brand: Robert Horne, Howard Smith and Paper Co. Buxton will be supported by the operations’ existing management teams, headed up by David Darwood (Precision Publishing), Steve Webb (narrow format reels and graphic and cartonboard), Robin Watkinson (WebCo) and Mandy Gallego (commercial print sales and operations). Buxton will report to Paperlinx UK managing director Phil Carr. “This new structure forms a key part of our mission to ensure a customer-centric business model,” said Buxton....
read moreMassive claim over Goodhead pension scheme
The group was put into administration in November 2012 ahead of the pre-pack sale to Sun European Partners that resulted in BGP and Stones the Printers becoming part of Polestar. Unsecured creditors were owed more than £72m, and the latest report from joint administrators Allan Graham and David Standish at KPMG details an additional £36.3m claim from the Pension Protection Fund (PPF) against the group’s pension scheme liability. This is a more than three-fold increase on the liability shown in Goodhead’s last accounts, where the figure stated was £10.3m. The administrators said they were “in the process of reviewing this claim”. The most recent actuarial valuation of the Goodhead pension scheme was carried out in June 2009, and it was supposed to be subject to this process every three years. Goodhead’s accounts stated that an update to take into account the requirements of financial reporting standard FRS17 took place in May 2012. If the claim stands the Goodhead Group pension will be one of the largest print-related schemes to enter the PPF. Polestar’s own scheme also ended up there after it was hived-off from the group and then offloaded as part of Sun’s pre-pack takeover deal to buy Polestar in 2011. It had a shortfall of £103m. Goodhead’s trade creditors including paper and ink companies were owed more than £9m. The only money available to them is a share of £195,000 for creditors of BGP, and £48,000 for creditors of Stones the Printers. There is no money available for unsecured creditors of Goodhead Group. The bill from KPMG for the administration costs thus far is more than £250,000....
read moreKodak Gold Dry Ink hits global market
The ink, previewed Drupa in 2012, enables printers to add a gold metallic effect as a fifth colour, said product category manager for digital printing Andreas Nielen-Haberl. He added that no other digital cut-sheet press in the market offered a gold metallic solution, especially with the option to print lengths up to 36in (914mm) on more than 800 different substrates. “The Nexpress has about 800 qualified substrates, from thick paper, thin paper and linen paper to plastics, and all of them can take the ink,” he said. “We try to help customers differentiate from their neighbours and almost any printer can do four-colour work.” Gold ink could enhance frames, certificates, postcards and tickets. The technology was being used for material for the Bolshoi Orchestra, he said, and other areas “that clearly want to differentiate from the rest of the market”. “Most people think there is one gold ink, which is a misunderstanding. It’s gold but only solid gold if you apply 100%. With the Nexpress you can mix it with an underlying colour to create hundreds of gold metallic effects; such as warm or cold or greenish gold.” According to Nielen-Haberl, the ink can be used in most Nexpress machines, while retrofitting costs around €15,000 for software and a station for holding the ink. Printing gold added an average of €0.02 to the cost of producing an A4 sheet, he added. Clients of beta tester Westamerica Graphics in California had incorporated gold for direct mail and certificates and as part of a brand colour or accent for use with certain projects, said Kodak’s digital operations manager Ken Dunn. “They have seen an immediate benefit from being able to print digital jobs with gold – from the economy of short runs and quick turnaround to the savings of not having to send out for expensive gold foil or embossing work.”...
read moreIndustry bodies join forces to create one voice
The Graphic, Print & Media Alliance (GPMA) is made up of seven founding members; Fespa UK, the British Association for Print & Communciation (BAPC), British Coatings Federation (BCF), Independent Print Industries Association (IPIA), Picon, the Process & Packaging Machinery Association (PPMA), and the Rubicon network. The BPIF is not currently signed up to the GPMA, but the federation’s chief executive Kathy Woodward said representatives would attend GPMA committee meetings and offer support where they could. However, she added that for the time being the BPIF would continue to lobby independently on the industry’s behalf. “We already have a great lobbying infrastructure at the BPIF and that will continue. We already sit on a CBI board and the Government’s Associate Parliamentary Manufacturing Group for example,” said Woodward. However, she added that the BPIF had not ruled out the possibility of joining the GPMA at a future date. The GPMA is also currently in talks with other bodies and hopes to soon consist of 15 or more member organisations. The first aim of the pan-industry consortium is to pull together detailed statistics on the industry, including information on average turnovers, number of employees and the value the sectors adds to the UK economy. “Our long term objective is to raise the performance of the sector and we can’t do that until we know what we’re dealing with, through credible numbers,” said Peter Morris, chairman of GPMA and of Picon. GPMA activities will include lobbying, including government lobbying and raising awareness of the threats of electronic media, the commoditisation of print, and an ageing workforce profile, and implementation of training infrastructures. Tim Webb, executive director at Picon, said: “There are areas where we have good statistics and strong training infrastructures, but others where it’s poor. We don’t have any training schemes in Picon’s membership for example.” He added: “Up until this point there’s been no formal way of industry trade associations talking. There are no cross-industry conversations and no cross-industry policies and we need to work to provide that.”...
read moreIndustry bodies join forces to create one voice
The Graphic, Print & Media Alliance (GPMA) is made up of seven founding members; Fespa UK, the British Association for Print & Communciation (BAPC), British Coatings Federation (BCF), Independent Print Industries Association (IPIA), Picon, the Process & Packaging Machinery Association (PPMA), and the Rubicon network. The BPIF is not currently signed up to the GPMA, but the federation’s chief executive Kathy Woodward said representatives would attend GPMA committee meetings and offer support where they could. However, she added that for the time being the BPIF would continue to lobby independently on the industry’s behalf. “We already have a great lobbying infrastructure at the BPIF and that will continue. We already sit on a CBI board and the Government’s Associate Parliamentary Manufacturing Group for example,” said Woodward. However, she added that the BPIF had not ruled out the possibility of joining the GPMA at a future date. The GPMA is also currently in talks with other bodies and hopes to soon consist of 15 or more member organisations. The first aim of the pan-industry consortium is to pull together detailed statistics on the industry, including information on average turnovers, number of employees and the value the sectors adds to the UK economy. “Our long term objective is to raise the performance of the sector and we can’t do that until we know what we’re dealing with, through credible numbers,” said Peter Morris, chairman of GPMA and of Picon. GPMA activities will include lobbying, including government lobbying and raising awareness of the threats of electronic media, the commoditisation of print, and an ageing workforce profile, and implementation of training infrastructures. Tim Webb, executive director at Picon, said: “There are areas where we have good statistics and strong training infrastructures, but others where it’s poor. We don’t have any training schemes in Picon’s membership for example.” He added: “Up until this point there’s been no formal way of industry trade associations talking. There are no cross-industry conversations and no cross-industry policies and we need to work to provide that.”...
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