Wednesday, July 31, 2013

Weyerhaeuser Annouces Newsprint Price Increase

http://www.weyerhaeuser.com/
Weyerhaueser informed customers today that its North Pacific Paper subsidiary (Norpac) will increase the price of 30-lb standard newsprint by $15/tonne effective Sept. 1 and raise the price of all other newsprint grades and basis weights proportionally.
Norpac manufactures about 340,000 tonnes/yr of newsprint at its at Longview, WA, mill and is the largest newsprint producer on the North American West Coast.
The mill was one of several newsprint makers that last month decided not to press ahead with a previously announced $40/ton July 1 price increase.

China to Close More Than 6.21 Million MT P&P Capacity in 2013

China has released capacity closure details for 19 industries including the pulp and paper (P&P) sector for 2013.
According to a list publicized last week by the Ministry of Industry and Information Technology (MIIT), more than 6.21 million tonnes/yr of old P&P capacity is scheduled to be wiped out by the end of this year, greatly surpassing the goal of 4.55 million tonnes/yr put forward earlier this year.
All the listed machines, which are run by 274 P&P firms in 21 provinces, have to stop production by the end of September, and be dismantled by the end of December.

Demand for Labels to Climb 4.2% Annually

http://www.freedoniagroup.com/
Label demand in the US is projected to climb 4.2 percent annually to $19.1 billion in 2017. While the dominant pressure sensitive segment will enjoy healthy advances, it will face growing competition from alternative labeling methods for primary packaging, such as heat-shrink and stretch sleeve, and in-mold labels. Heat-shrink labels will experience the fastest gains through 2017, with increases attributable to their ability to form-fit contoured containers and their strong visual appeal afforded by 360-degree graphics and maximum promotional area, enabling consumer products to stand out in a crowded marketplace. Glue-applied labels, despite their lower unit costs and speed of application, will face further loss of share due to competition from higher performing labels, especially in key markets such as beer and wine. These and other trends are presented in Labels, a new study from The Freedonia Group, Inc., a Cleveland-based industry market research firm.
Flexography is the leading label printing technology due to its versatility, low cost, and suitability for use in the large pressure sensitive segment and the faster growing sleeve label segment. However, digital printing will experience double-digit annual advances through 2017 as it continues to displace traditional methods such as lithography and flexography.
Primary packaging accounts for by far the largest share of label demand. Though growth in this segment will slightly trail the overall average, gains will be supported by the importance of labels in differentiating products at retail and influencing consumer purchasing decisions. Secondary labeling and labels used in mailing and shipping applications are projected to achieve the fastest growth through 2017.
Paper will continue to account for the majority of label stock over the forecast period based on its cost advantages and the ability to be coated for enhanced durability. The use of higher-end materials -- such as metallic and holographic papers -- will also promote value growth. Plastic stock will continue to capture share from paper in a broad range of label applications based on aesthetic and performance advantages, along with a shift in the overall packaging product mix toward plastics. The popularity of the no-label look will also bode well for plastic labels. By 2017, plastic will account for more than 30 percent of label demand in value terms.

Coupons See Post-Recession Recovery

http://www.mediapost.com/publications/article/205720/coupons-see-post-recession-recovery.html?edition=62855#axzz2aYeTYcG7
Coupon use is returning to modest growth, with digital distribution driving some of the activity. The CPG Coupon Industry Facts, a half-year report by Valassis unit NCH Marketing Services, shows that growth is being driven by a number of factors extraneous to food and traditional media. 
Overall, digital is seeing double-digit growth in distribution and redemption. That fact, along with a post-recession correction, is slowing overall redemption declines. Still, digital notwithstanding, free-standing inserts (FSI) stay ahead of the game, with 91.1% share.
http://whattheythink.com/news/64683-consumer-packaged-goods-marketers-strategically-increase-coupon-mix-adjust-tactics/
Valassis, a leader in intelligent media delivery,released today mid-year 2013 coupon facts that indicate consumer packaged goods (CPG) marketers have continued to strategically evolve their mix of coupons offered, including which products are promoted with coupons, how consumers receive coupons and various tactical offer-level changes. 
The U.S. Mid-year 2013 CPG Coupon Industry Facts Report prepared by NCH Marketing Services Inc., aValassis subsidiary, reveals a 1.8 percent increase in coupon distribution, driven by an increase in the non-food segment. In the first half of 2013, coupons for non-food products represented 62.5 percent of all coupons distributed, a 2.9 percent increase from the first half of 2012. Overall, CPG manufacturers issued 168 billion coupons in the first six months of 2013.

Direct Marketing's Media Take Over

http://www.dmnews.com/direct-marketings-media-take-over/article/305422/
As a student of statistics, my college years were steeped in the study of probability and likelihood, from survey sampling to process control and regression modelling. But without any professional work experience to apply it to, it wasn't until I saw the 2001 film Traffic that the real implications of statistics for business truly resonated with me. In one scene, a Mexican drug cartel member described how it used predictive analytics and regression models to plan border crossings. It was an epiphany, adding new meaning to the direct marketing adage of “right time, right place."

Hard Road Ahead for Postal Reform

http://www.dmnews.com/hard-road-ahead-for-postal-reform-bill/article/305260/
Committee last week is a good first step on what still promises to be an arduous journey.
The bill, authored by committee Chairman Darrell Issa, passed strictly along partisan party lines, with all Democrats voting against it. That leaves little hope for passage, in its current form, by a Democrat-controlled Senate. Indeed, it may not even be brought before the House for a vote by Speaker John Boehner (R-OH). Nonetheless, interested parties in the catalog and direct mail communities feel certain Issa's bill gets the mail trucks rolling in the right direction.

Vanity Fair and Vogue Get TV Deals

http://www.mediabistro.com/fishbowlny/vanity-fair-and-vogue-get-tv-deals_b89825
Vanity Fair and Vogue are getting into the TV business. According to The Wall Street Journal, the Condé Nast titles have inked deals with Discovery Communications to launch two shows: Vanity Fair Confidential and Fashion Fund.
The crime and mystery show Confidential, based on a series of VF articles, will air on Investigation Discovery channel, and Fashion Fund, based on a design contest sponsored by Vogue, will air on Ovation channel.
Magazine articles serving as the source for TV shows and movies is nothing new, but what is worth noting here is that these two deals are seemingly more friendly to Condé Nast, not writers. Older Condé contracts gave writers royalties if their pieces hit the big screen, but newer contracts do not give out as much. Unsurprisingly, magazine editors and writers aren’t happy with that, which makes sense, since without their ideas the shows wouldn’t exist.

Bringing Big Data Into Marketing

http://adage.com/article/dataworks/big-data-marketing-businesses-research-report-ad-age/243378/
Marketers often get accused of creating hype. But when it comes to big data, they're facing the same challenge as everyone else in separating fact from fiction. Like "the cloud" before it, "big data" is the latest IT buzzword being twisted and reshaped to fit all sorts of agendas. In Gartner's Emerging Technologies Hype Cycle 2012, big data is nearing the peak of inflated expectations. Underlying the squishy definitions, though, is the growing role that data plays in helping marketers identify, understand and communicate with target audiences.

Hearst Names SVP, Chief Revenue Officer

http://www.hearst.com/press-room/pr-943-20130729.html
Hearst Magazines today announced the appointment of Todd R. Haskell to the new role of senior vice president, chief revenue officer, Hearst Magazines Digital Media, effective September 3. The announcement was made by Michael Clinton, president, marketing and publishing director of Hearst Magazines, to whom Haskell will report.

2013 City and Regional Magazine Survey

http://www.foliomag.com/2013/2013-city-and-regional-magazine-survey#.UflwWlOYyKy
According to the data from FOLIO:’s 2013 survey, city and regional magazines, in general, remain an anomaly in the magazine media world. This is mainly due to the fact that digital revenues have been stuck in the mid-single digits. Events, another big revenue contributor in other magazine verticals such as b-to-b and consumer, throw off even less revenue. In other words, the city and regional magazine category has remained steadfast in its print-centric outlook.

One in Ten Marketing Emails Faulty

http://www.dmnews.com/more-than-one-in-10-emails-are-faulty/article/305410/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+DMNewsHome+%28DMNews+Home%29&utm_content=Netvibes
Marketers have a tough enough time getting into the inbox of the right customers at the right time. The last they need is to make it tough for customers who receive those emails to take action. But this is too often the case. More than one in 10 emails from major brands and marketers contain at least one faulty feature, according to a new study by Innovyx Inc. Additionally, 9% of emails read on mobile phones and tablets contain one or more broken links, and more than 5% of emails contain a broken image. 
The email and digital messaging agency analyzed more than 5,000 marketing emails and found that more than 11% of all marketing emails had one or more broken links. Innovyx primarily reviewed emails that were sent as part of a loyalty program or customer lifecycle series during May and June 2013.

NA Wood Pellet Exports Up 50%

http://www.farminguk.com/news/Wood-pellet-exports-from-North-America-up-over-50-_26088.html
Wood pellet exports from North America were up over 50% in the 1Q/13 from 1Q/12 with the United Kingdom being the major export destination, reports the North American Wood Fiber Review.

Timber Market in Recovery in US South

http://southeastagnet.com/2013/07/19/southern-lumber-timber-market-recovery-underway/
Economic recovery is producing promising outgrowths for the Southern timber and lumber industry. Increasing demand and constrained supply globally are inciting a long-term rebound across the U.S., which is good news for Florida where timber resources are an important economic driver. 
Rebounding demand is tied to recovery of the U.S housing market, which is surging toward pre-housing bust levels for housing starts. In March, builders started work on the most new U.S. houses in almost 5 years. Long-term demographic demand is projected to drive 1.5 million or more annual housing starts nationwide, and repair and remodel expenditures are predicted to dramatically improve over 2008–2012 levels. Growth in housing starts in Florida gives more cause for confidence. The latest reports from the National Association of Homebuilders show 2013 YTD housing starts in Florida up 68% over 2012.

Interpol Crack Down on Illegal Logging in LA

http://www.unep.org/newscentre/Default.aspx?DocumentID=2723&ArticleID=9576
Nearly USD 40 million worth of timber has been seized in follow up investigations as part of INTERPOL's Operation Lead targeting illegal logging, forestcrimes and the criminal networks behind them. 
Building upon the initial outcomes of the operation, Costa Rica and Venezuela in particular haveincreased their efforts in the fight against illegallogging, confiscating 292,000 m3 of wood and wood products - equivalent to 19,500 truckloads - during follow-up investigations and operations.Venezuelaaccounted for nearly two-thirds of the total, with 188,000 m3 of wood seized in a single month. 
Law enforcement agencies in the two countries conducted intelligence gathering to identify locations where illegal logging was occurring, transportationroutes and the criminals involved in all phases of the process.Using this intelligence, authorities carried out operations at logging camps, sawmills andtransportation corridors. 
Project Leaf is a consortium initiative led by INTERPOL, with the United Nations Environment Programme and with the financial support of the NorwegianAgency for Development Cooperation. The project supports countries in tackling illegal logging and forestry crime, which undermine attempts to implementnational and international forest protection policies and sustainable forestry practices.

Tuesday, July 30, 2013

Catalyst Paper Reports Q2 Results

http://www.paperage.com/2013news/07_29_2013catalyst_paper_earnings.html
Catalyst Paper reported a net loss of $28.0 million ($1.93 per common share) for the second quarter of 2013, a period heavily impacted by maintenance downtime. Before specific items, the net loss was $18.1 million. Specific items in Q2 included a $2.1 million gain on the sale of the Elk Falls industrial site, a non-cash loss on the mandatory redemption of Exit Notes of $2.3 million and a $9.6 million non-cash loss on the effect of foreign exchange on our US dollar denominated debt. This compares with the Q1 net loss of $9.8 million ($0.89 per common share) and $11.6 million net loss before specific items.
Adjusted earnings before interest, taxes and depreciation (EBITDA) and EBITDA before restructuring costs in the second quarter were negative $0.6 million and negative $0.5 million respectively.
Revenues of $263.4 million for the quarter were up from the prior quarter, reflecting higher sales volumes for specialty uncoated, newsprint and directory, higher transaction prices for newsprint and pulp, as well as the effect of the weaker Canadian dollar. Pulp sales volume was up over the same quarter of 2012 as was the transaction price.

Glatfelter Reports Q2 Results

http://www.paperage.com/2013news/07_30_2013glatfelter_earnings.html
Glatfelter today reported second-quarter 2013 net income of $0.9 million, or $0.02 per diluted share, and adjusted earnings of $5.1 million, or $0.12 per diluted share. These results compare with second-quarter 2012 net income of $13.4 million or $0.31 per diluted share and adjusted earnings in the prior year quarter of $5.3 million or $0.12 per diluted share.
Consolidated net sales for the second quarter of 2013 totaled $426.0 million, a quarterly record and a 10.7 percent increase compared with $384.7 million in the second quarter of 2012 reflecting organic growth of 3.1 percent and acquisition growth of 7.2 percent.

Wausau Reports Q2 Results

http://www.paperage.com/2013news/07_29_2013wausau_paper_earnings.html
Due to the completed sale and the first-quarter closure of its former manufacturing facility in Brainerd, Minnesota, financial performance of the former Paper segment, including an after-tax impairment charge of approximately $40.1 million as a result of the second-quarter sale, is reported as discontinued operations.
Including a loss of $0.81 per share from discontinued operations, net of tax, the 2013 second quarter net loss was $1.11 per share.
On a reported basis, the second quarter 2013 results from continuing operations was a net loss of $0.30 per share.
Results of continuing operations reflect the impact of the start-up of the new Harrodsburg manufacturing and converting capabilities, as well as manufacturing and inventory transition in support of the new products related to the $220 million Tissue expansion project.

Kruger Products Names VP

http://www.paperage.com/2013news/07_30_2013kruger_products_rob_latter.html
Latter first joined Kruger Inc. in 1997 as Sales Manager for the Kruger Packaging Division. In 2001, Latter took on the position of Vice President, AFH Division. He remained in this role before returning to the Packaging business as Vice President in 2007.

MeadWestvaco Reports Q2 Results

http://www.meadwestvaco.com/index.htm
MeadWestvaco Corporation, a global leader in packaging and packaging solutions, reported a modest sales increase for the second quarter of 2013, but lower earnings primarily due to the previously announced outage at the company's paperboard mill in Covington, Virginia. The company generated good revenue growth in many targeted packaging markets, especially food, beverage, healthcare and personal care, as well as in specialty chemicals. Results also benefited from the contributions of the Brazilian pine chemicals business, Resitec, and the Indian industrial packaging materials business, Ruby Macons, and from improved pricing for industrial packaging solutions in Brazil. These benefits were partially offset by lower forestland sales and unfavorable foreign currency exchange during the quarter.

Great Northern Paper/Cate Street Agrees to Pay Taxes

The Katahdin region's largest taxpayer has agreed to pay $1.25 million in overdue property taxes to East Millinocket and Millinocket by mid-August, officials said Friday.
Cate Street Capital leaders committed to paying the $900,000 in property taxes the company owes for the 2012-13 fiscal year during a meeting on Monday, Millinocket Town Manager Peggy Daigle said.