Resolute Weighs Forest Purchases As Costs Drop

http://www.businessweek.com/news/2013-05-14/resolute-weighs-forest-purchases-as-costs-drop-corporate-canada

Resolute Forest Products Inc. Chief Executive Officer Richard Garneau says the world’s largest newsprint maker will consider acquisitions as lower borrowing costs aid a push into more lucrative products. Garneau is betting that a focus on wood, pulp and specialty papers can help boost profit as it pares its exposure to newsprint, where demand has slumped as publications switch to the Internet. Last year, Garneau acquired Fibrek Inc. to add three pulp mills and bolster Resolute’s position as the third-largest North American pulp producer. “We now have the flexibility to be able to do something else in terms of growth opportunities,” Garneau, 65, said May 8 in an interview at the Montreal headquarters of Resolute, formerly known as AbitibiBowater Inc. “We had Fibrek last year and it’s a good example of what could be done.” Resolute, 30 percent owned by Prem Watsa’s Fairfax Financial Holdings Ltd. (FFH), sold $600 million of 10-year, 5.88 percent bonds last month to replace more expensive debt. The move will save about $15 million a year, the company said. The supplier of newsprint to The New York Times and Brazil’s O Globo newspapers, has surged 43 percent in the 12 months through yesterday, the best-performing among five Canadian forest-products stocks, according to data compiled by Bloomberg. It owns and operates more than 40 pulp and paper mills and wood products facilities in the U.S., Canada and South Korea. “They are a low-cost producer,” said RBC’s Quinn. “I have no trouble with the company, I have trouble with the industry. The biggest issue he’s got is that he’s in newsprint and groundwood papers, which are in secular decline, and declining quite rapidly.” Garneau said the company’s portfolio of assets is well-balanced. “I’m optimistic that pulp is a good segment, lumber is a good segment, and all our specialty papers, flyers and inserts, are going to come back at some point,” he said. “With newsprint, we have the flexibility to export.”

Neenah 2013 First Quarter Results

Neenah Paper Reports 2013 First Quarter Results:
Neenah Paper, Inc. reported adjusted earnings from continuing operations of $0.74 per diluted common share in the first quarter of 2013 compared to adjusted earnings of $0.77 per share in the first quarter of 2012. Without adjustments, reported earnings in the first quarter of 2013 were $0.73 per diluted share and compared to $0.54 per share in the prior year period. Adjusted earnings excluded costs of $0.01 per share in 2013 to integrate brands purchased from Southworth in January 2013 and excluded costs of $0.23 per share in 2012 for acquisition costs and a pension settlement charge.

Nippon-Develops Lightest Ultra-Thin Printing Paper

Nippon Paper Papylia Develops Japan's Lightest Ultra-Thin Printing Paper:
Nippon Paper Papylia Co., Ltd. (President: Masahiro Hirakawa) has developed printing paper weighing only 18 g/㎡, making it the lightest such paper in Japan (according to an internal study) and one that is appropriate for documents containing dense information, such as insurance clauses. The company began sales of the paper in Japan in May 2013. By making use of its technological abilities developed over many years, Nippon Paper Papylia engages in the development of specialty paper with functions and features suited to diverse customer needs. This time, in the field of thin paper (Note), at which the company excels, the company has further reduced the weight of ultra-thin printing paper and succeeded at developing printing paper weighing only 18 g/㎡ , 10% lighter than the previous low (20 g/㎡ ).

Ahlstrom Signs New Demerger Plan

Ahlstrom signs new demerger plan 
Ahlstrom Corporation's Board of Directors has signed a new demerger plan related to Coated Specialties, Ahlstrom's Label and Processing business in Brazil, and cancelled the previous Coated Specialties demerger plan. Under the signed demerger plan, all the assets and liabilities contained in the Ahlstrom Group, that belong to the Coated Specialties business in Brazil, will be transferred to Munksjö Oyj through a partial demerger. The demerger is part of the process through which Ahlstrom's Label and Processing business and Munksjö AB will be combined.

Consolidated Graphics Q4 and Year End Results

CGX Reports Increases for Q4 and Year Ended March 31, 2013: Consolidated Graphics today announced financial results for its fourth quarter and year ended March 31, 2013. Revenue for the March 2013 quarter increased to $251.0 million, compared to $250.6 million for the same quarter last year due to a .5 percent same-store sales increase, excluding election related business. Adjusted Operating Income increased 115 percent for the quarter to $12.8 million or 5.1 percent of revenue, compared to $6.0 million or 2.4 percent of revenue last year. Adjusted Net Income increased 167 percent to $7.6 million for the quarter, compared to $2.9 million for the prior year. Adjusted Diluted Earnings Per Share for the March quarter increased 182 percent to $.79, compared to $.28 last year. Adjusted EBITDA increased 22.9 percent to $30.7 million for the quarter and Free Cash Flow was $32.4 million.

MPA's Berner Puts Her Money On Magazines

http://www.magazine.org/node/24339

Yesterday Bob Sacks sent out an article titled “Why Magazines Are Failing” by Becky Lang. Here is the response from Mary G. Berner, President and CEO of MPA. Becky Lang is dead wrong about magazines. Magazines are not failing. Just look at the facts: print and tablet magazine audiences are UP and growing (+1.3% and +47.5% respectively). Magazine Media boast an undisputed appeal for ALL age groups.  91% of U.S. adults read print editions, and the number of 18-24 year olds who read print magazines is higher than the general adult population at a whopping 96%. And it gets better: more than half of readers 18-34 follow a magazine brand, editor or columnist on Twitter.  Not to mention that many of the highest grossing iPad apps in the Apple App Store are Magazine Media apps. And despite Becky's attempt to push magazines into an early grave, we're still talking about a $27.5 billion industry. It all starts with the reader, but I've never heard any editor or publisher - and I've run lots of magazines so I've known lots of editors and publishers - say anything like "name the person your ads are targeted to" so that they can create content for that person. In fact, it is ass-backward. Every good editor knows that the success or failure of a magazine brand begins and ends with creating content that speaks to the specific interests and passions of its readers. They also know that readers expect and delight in a magazine's distinctive and differentiated voice. It's what makes Cosmopolitan different from Glamour, The New Yorker from New York Magazine, Field & Stream from Garden & Gun.  Every smart advertiser and marketer knows that this relentless focus on a magazine's community of readers is why magazines - unlike other media - are able to deliver unparalleled levels of engagement in advertising in magazines, regardless of platform. Where I do agree with Ms. Lang  is that "thinking creatively and having a point of view" is what will resonate with consumers, and for my money - I'd bet on Magazine Media brands to continue to do just that.

Peek At Hearst’s Digital Strategy

http://www.foliomag.com/2013/peak-hearst-s-digital-strategy#.UZPd0LWG2QN

Chris Wilkes admitted he was initially uncertain of how Hearst's digital efforts would play out—he even made sure to keep his old job when he started his work on tablets. But now, more than three years after the launch of the company's dedicated app lab, he's overseeing the future of fulfillment. Wilkes, vice president of digital editions, magazines and apps for Hearst Magazines, spoke to a room of about 50 fulfillment professionals at the CDS Global Preferred Showcase at Hearst Tower on Tuesday. He described the company's digital strategy that helped its tablet subscriber base pass the 1 million mark in March and add 400,000 readers year-over-year. "There's a pretty good climb for a business that's growing in importance for us," he said. "It's a new revenue stream, it's a premium revenue stream, we do far less discounting in the digital magazine space, the [production] costs are less. It's also creates more of a transition between print advertising and digital advertising. The economics of a digital magazine are superior to the economics of a print magazine."

Hearst's Seventeen & Redbook Appts Jamison VP/Pub Dir

http://www.hearst.com/press-room/pr-910-20130515.html

Hearst Magazines announced today that Jayne Jamison has been appointed to the new position of vice president and publishing director of Seventeen and Redbook magazines, overseeing advertising and marketing initiatives, and developing strategies to drive revenue through print, online and strategic partnerships. The announcement was made by Michael A. Clinton, president, marketing and publishing director, Hearst Magazines. Jamison, formerly vice president, publisher and chief revenue officer of Seventeen since 2003, will be taking over the publishing duties at Redbook from Mary Morgan, vice president, publisher and chief revenue officer, who is relocating to Cape Cod, Mass. Jamison was vice president and publisher of Redbook from 1997 to 2003, before joining Seventeen. She assumes her new role immediately and will continue to report to Clinton.

VF Editor’s Slow Contract Talks Spur Rumors

http://www.nypost.com/p/news/business/graydon_deal_drag_Pb94LBjL3Dh6XIBh9pp6cJ

Vanity Fair Editor Graydon Carter, who turns 64 in July, is in the midst of negotiating a new contract, kicking the Condé Nast rumor mill into high gear as the company enters a more fiscally conservative era.For the first time in his 21-year tenure, the talks are not being handled by the company’s aging family patriarch S.I. Newhouse Jr. but rather by CEO Charles Townsend, who holds the purse strings.

Carter has been at the helm since 1992, when he succeeded Tina Brown. After a bumpy first year, he went on to become one of the most high-profile and powerful editors, making his annual Hollywood Oscar night party and the VF’s New Establishment list of media moguls coveted totems in the world of pop culture. He loves his job, and he’s very powerful,” said one insider.His contract is believed to expire in July, roughly two months from now, indicating that things aren’t going smoothly. As the negotiations between Carter’s attorney and Condé drag on, insiders have come up with a wish-list of potential replacements. They include: Adam Moss, the award-winning editor of New York magazine; Janice Min, who pushed Us Weekly to its highest circulation before taking over The Hollywood Reporter; Dylan Jones, editor of the well-regarded British GQ; and Geordie Greig, the politically connected editor of the Sunday Mail in the UK. Carter enjoys the perks of his position. But as his interests have expanded, sources say he is spending less and less time in his well-appointed office at 4 Times Square. Last year, the powers-that-be grew alarmed when VF’s single-copy sales in the first half plunged 18.8 percent, to 288,938, out of total circulation of just under 1.2 million. The second-half figures didn’t reverse the newsstand slide. Ad sales have also been soft, which doesn’t put Carter in the strongest negotiating position. One source suggested it is like a baseball player having an off year in the so-called walk year of a contract. Townsend insists that talk of a succession plan is off base and that he expects Carter to be at the helm for years to come. “There are no plans for anyone to succeed Graydon at Vanity Fair,” said Townsend. “We look forward to many more years of his leadership, wit and talent.”

Print Still A Compelling Argument For Advertisers

http://www.pubexec.com/blog/time-spent-with-print-still-compelling-argument-advertisers

It's always kind of fun when some disruptive news drops that shakes up the "print is dying" narrative. This week, it was a research report from McKinsey and Company, which found that in terms of time spent, digital products (tablets, smartphones and computers) make up only 8 percent of news consumption. As reported by Rick Edmonds in Poynter, 35 percent of time spent with news still belongs to newspapers and magazines, 16 percent to radio and 41 percent to TV. Smartphones and tablets together account for 4 percent of time spent, and computers, an additional 4 percent. This seems shocking, but the first thing to remember is this measures time spent with platforms, not the raw numbers of people using them. Also, when total media usage is measured (not just news consumption), digital platforms grab more than half of total time spent. Paid Content's Matt Ingram sets up a bit of a straw man in cautioning "publishers who might see this as reason for unbridled optimism" (is there a news publisher alive who is feeling "unbridled optimism" about print?), going on to note that large numbers of consumers prefer to get their news in short bursts. Besides, he says, most advertisers are not looking to specifically target news consumers. While advertisers might not target news consumers, they do presumably love "lean back" readers, who are more likely to take the time to notice their advertising. News browsing via Twitter and Flipboard does not lend itself to noticing, reading and clicking through ads. So this report does provide a bit of manna for publishers looking to convince advertisers that's it's too early to abandon print. Heck, we may even be entering an era where print stabilizes and TV becomes the new whipping boy for disruptive doomsayers. Time will tell.

German Producers Want Hike On Magazine Paper

http://www.euwid-paper.com/news/singlenews/archive/2013/may/Artikel/producers-want-to-hike-magazine-paper-prices-in-second-half-year.html

Magazine paper producers would like to see prices in Germany rise in the second half of the year. They are trying to pave the way for hikes by taking downtime. Market players on the German magazine paper market have their eyes set on the second half of the year and producers are thinking about raising prices. Paper mills feel that mark-ups are unavoidable due to inadequate prices for uncoated and, above all, coated magazine paper and catalogue paper at present. The question was not whether but only when prices would edge higher, they say. Preparations appear to be widely under way. Paper mills are reacting to the slump in demand by taking downtime, an unusually large number of such actions are in the works for May and June. Paper industry representatives are not tiring of emphasising that mill and machine closures were having an impact on the market. Insiders are also wildly speculating about additional downtime in the LWC sector. Further shutdowns appear inevitable amid the prevailing supply surplus and forecasts of another decline in demand, above all for LWC. "We have to sort out capacity," market experts remarked.

European Price Benchmarks

http://www.foex.fi/

European printing and writing price benchmarks down modestly for all but coated woodfree paper, which increased slightly with better demand from highest-quality magazines; newsprint prices flat in US, down a bit in Europe.

Newspapers' Is it premature to give up on print?

http://tech.fortune.cnn.com/2013/05/15/newspapers-only-hope-quality/?iid=SF_F_River

The New Orleans Times-Picayune's decision to return to daily publication, reversing (sort of, in a way) its disastrous move a year ago to print a paper only three days a week, is being described by some observers as a salvo in an escalating newspaper war. The Advocate of Baton Rouge has invested big in covering New Orleans since the Times-Picayune's retreat. That paper is publishing a New Orleans edition, and it has hired a bunch of journalists away from the hometown paper, including some big names. Meanwhile, the Philadelphia Inquirer has resumed publishing a newsstand edition on Saturdays after halting Saturday publication about two years ago. "This daily newspaper thing may be catching on," wrote David Carr in the New York Times' on Sunday.  "The much ballyhooed unmaking of daily newspapering seems to be unmaking itself." Well, not really. Though the moves are certainly positive ones, it's much too early to conclude that daily newspapers are back, or even a quarter of the way back (of course, Carr knows this, as he makes clear). What some publishers seem to be realizing is that, for now at least, the only way to make any money with local and regional news covered by large staffs is by printing newspapers. Online ads sell for a tiny fraction of what print ads generate. Of course, circulation and print-ad sales are generally falling, too, but it's clear that, at the moment, most newspapers need to stick with print until they can figure out how to make money online, if there is a way.

Mobile Marketing To approach $20B By 2015

Mobile marketing to approach $20B by 2015: Mobile marketing communications expenditures in the U.S. totaled approximately $6.70 billion last year and are projected to reach $19.80 billion by 2015, according to a Mobile Marketing Association study.