Magazine News Roundup

Barnes & Noble has put Sterling Publishing, which it bought in 2002, up for sale.  The unit is focused on non-fiction, craft, cooking, self-help and children’s books.  Barnes & Noble Inc. also announced they may separate their Nook electronic book business. http://global.nytimes.com/ and http://online.wsj.com/home-page

National Geographic Traveler has launched an app on Apple Newsstand.

http://www.audiencedevelopment.com/2012/after+holding+back+national+geographic+releases+traveler+ipad

AOL and Bonnier’s Parenting Group have formed a novel ad-sales alliance.  AOL will help sell the reserved ad inventory of Parenting.com and, in return, will drive web traffic to the site and the magazine by featuring links on some of its own venues.

http://www.audiencedevelopment.com/2012/bonnier+and+aol+strike+digital+content+and+sales+partnership

Advantage Business Media, publisher of R&D, bought Vicon Publishing, which targets the laboratory and forensic sciences market with titles ALN Magazine, ALN World, Forensic Magazine, Controlled Environments and DFI News.  Terms of the deal were not disclosed.

http://www.foliomag.com/2012/advantage-business-media-buys-vicon-publishing

In another story of publishers seeking new ways to market their products, Rodale’s Women’s Health is partnering with Gilt Group to launch an on-line sale featuring items chosen by the magazine’s editors.  The publication will not receive a share of revenue from sales, but Gilt’s Clean Start campaign will feature links to purchase magazine subscriptions and promote the brand through its own social media.

Bangor Metro magazine, a regional serving the Bangor, Maine area, has been sold to a group of investors that includes Jack Cashman of Cashman Assets.  Terms of the deal were no disclosed.

http://www.foliomag.com/2012/bangor-metro-regional-magazine-be-sold-private-investors

Kodak Reported to be Readying for Bankruptcy

Kodak reported to be readying bankruptcy filing: Rochester, N.Y.—Eastman Kodak Co., which has struggled to shift from consumer photography to b-to-b digital printing and marketing, is preparing for a possible bankruptcy filing, according to reports.

Resolute Forest Products Sells 25,000 Acres

Resolute Forest Products sells 25,000 acres of land to Nova Scotia:
Nova Scotia has reached a deal with Resolute Forest Products (formerly AbitibiBowater), to purchase 25,000 acres of land for $23.7 million.

Top 50 GPO Print Suppliers

Top 50 GPO Print Suppliers for 2011 Announced: CHAMBERSBURG, PA—Jan. 5, 2012—The top 50 private sector print suppliers that did the most work for the U.S. Government Printing Office (GPO) during Federal Fiscal Year 2011 (October 2010 through September 2011) has been released.

Pacific West Commercial Wins Bid for NewPage Post Hawkesbury

http://thechronicleherald.ca/novascotia/48700-pacific-west-wins-bid-buy-idled-newpage-paper-mill

http://thechronicleherald.ca/business/48967-no-guarantees-paper-mill

 Ernst & Young, the Monitor of the CCAA proceedings, announced that Stern Partners’ Pacific West Commercial has won the bid to potentially buy the NewPage Port Hawkesbury mill, which went into bankruptcy in September.  Four bidders, two of whom were anonymous but purportedly were going to close the mill, were among the finalists.  Both Pacific West Coast and Paper Excellence (and APP company) were understood to be planning to keep the mill, or at least parts of it, operating.  West Coast Commercial, now the sole bidder, has said it will not restart the newsprint paper machine, but plans, pending negotiations with Nova Scotia Power (electricity prices) and unions (labor costs), to run the 400,000 short tons per year Supercalendered PM.  NewPage Port Hawkesbury is asking the governing court, on January 18, to extend the proceedings deadline until March 30 to give the company time to meet the conditions of the sale.  The Natural Resources Minister, Charlie Parker, announced that the province intends to keep the mill ready to restart, which is expected to cost up to $5 million, through March.  It plans to recover the cost through the sale of harvested wood. 

Ronald Stern, the president and founder of Stern Partners, a private BC investment firm, is also the president and CEO of Alberta Newsprint Co. and co-owner of The Winnipeg Free Press and The Brandon Sun.  His Belgravia Paper Company owns the former Simpson Paper mill, a coated woodfree producer, in West Linn, Oregon.  Stern Partners, through Belgravia, has been involved in other paper operations in the past, including Pasadena Paper (now closed) and St. Mary’s (now owned by a different investment group and just recently in receivership).  Alberta Newsprint is a running newsprint mill.

Business-to-Business Print Sector Up 4.6%

http://www.btobonline.com/article/20120105/MEDIABUSINESS10/301059992/b-to-b-media-sectors-show-revenue-gains-in-q3

As reported by the Business Information Network and released by the American Business Media, B-to-B media grew in the third quarter as compared to the same period last year.  Print increased 4.6% to $5.7 billion, digital jumped 22% to $1.6 billion and trade shows rose 1.1% to $7.7 billion.

Athleta Begins First National Ad Campaign

http://adage.com/article/news/athleta-launches-tagline-national-campaign/231873/

The Gap Inc.’s Athleta, with partner Peterson Milla Hooks, is launching its first national campaign, which will include print, digital, in-store marketing, sponsorships and partnerships.  Kantar Media reported that Athleta spent $400,000 on advertising in 2010 and $7.3 million in the first 10 months of 2011.  The VP of marketing, Tess Roering, said that the 2012 ad budget was larger than last year’s.  The campaign is centered on the tagline “Power to the She.”

manroland Auditor Reports Progress

manroland AG Insolvency Administrator Reports Promising Negotiations: The prospects of a successful investors’ agreement for the insolvent manroland AG have improved further. Auditor Werner Schneider of the law firm of Schneider, Geiwitz & Partner reported conducting numerous negotiations with interested parties in the past few days. “We now have parties seriously interested in all three production sites in Augsburg, Offenbach and Plauen (Germany), with whom we are involved in ongoing negotiations,” Schneider said, elaborating on the current status. The ultimate aim continues to be the selling of key company segments by the end of the current insolvency proceedings on Jan. 31, 2012, in order to ensure continued operations and to save as many jobs as possible. Given the promising interest of potential buyers, this remains a feasible aim.

Pacific West Corp. Winning Bidder for NewPage Port Hawkesbury

Pacific West Corp. is the winning bidder for NewPage Port Hawkesbury:
Pacific West Corp. is the successful bidder for the idled NewPage Port Hawkesbury operation.
The bid is now subject to meet several conditions, as well as a court approval. The value of the bid has not been disclosed, and it is not known when the sale will be complete.

Meredith Acquires FamilyFun Magazine

Meredith Acquires FamilyFun Magazine from Disney Publishing Worldwide: Meredith Corporation is acquiring the assets of Disney Publishing Worldwide’s FamilyFun. Beginning in March 2012, FamilyFun and its associated special interest publications, as well as Toyhopper and other magazine apps, will be published by Meredith.

Classic Graphics Buys Harperprints

http://www.piworld.com/article/classic-graphics-acquires-certain-assets-fellow-printer-harperprints/1

Classic Graphics, the largest privately owned graphic communications company in the Carolinas, has acquired certain assets of Harperprints.  Classic Graphics, number 126 on Printing Impressions top 400 printer list, had sales of  ~$50 million in 2011.  Many mid-size printers are merging or consolidating, and co-owner David Pitts said this is a logical move for the company in that context.  Terms of the deal were not disclosed.

Business-to-Business Publisher PennWell Reports Acquisition

http://www.foliomag.com/2012/pennwell-acquires-broadband-technology-report

PennWell announced its purchase of Broadband Technology Report (BTR) from Hermes Media & Research LLC.   The deal includes the weekly BTR, which targets engineers and the technology industry, tech alerts, video products and the Diamond Technology Reviews.  Terms of the deal were not disclosed.

Sears Holdings Names EVP

Brookstone CEO leaves to become Sears Holdings' EVP: Sears Holdings Corp. named Ron Boire EVP, chief merchandising officer and president of the Sears and Kmart business units on Jan. 3.

Online Holiday Sales Record $37.2 Billion

US Online Holiday Shopping Season Reaches Record $37.2 Billion for November-December Period, comScore Reports: comScore has reported that retail e-commerce spending for the entire November - December 2011 holiday season reached $37.2 billion, marking a 15% increase versus last year and an all-time record for the season.

manroland Reports Promising Negotiations

manroland AG Insolvency Administrator Reports Promising Negotiations: The prospects of a successful investors’ agreement for the insolvent manroland AG have improved further. Auditor Werner Schneider of the law firm of Schneider, Geiwitz & Partner reported conducting numerous negotiations with interested parties in the past few days. “We now have parties seriously interested in all three production sites in Augsburg, Offenbach and Plauen (Germany), with whom we are involved in ongoing negotiations,” Schneider said, elaborating on the current status.

29 Consecutive Months of Manufacturing Growth in U.S.

The ISM Report on Business reported that economic activity in the manufacturing sector expanded in December for the 29th consecutive month.  Two of the 18 sectors reporting growth for the month were Printing & Allied Activities and Paper.  The overall economy grew for the 31st consecutive month.

Survey: U.S. Will Never Go Paperless

America Will Never Go Paperless According to Majority of Survey Respondents: Since electronic devices play such a big part in our daily lives, Poll Position wanted to know if Americans think the United States could ever be a paperless society.
In a national scientific telephone survey, Poll Position found that 56 percent of Americans said they don’t think the country would ever be a paperless society.
The 18-29 age group voiced the strongest opinion, with 63 percent saying the United States would never be a paperless society vs. 23 percent who said it could become a paperless society.

Media M&A Up 9 % in 2011

Overall Media M&A Up 9 Percent in 2011: The media M&A market saw its third year in a row of growth, closing out 2011 with a 9 percent increase in total value over 2010, according to a year-end report by The Jordan, Edmiston Group.
There were 896 deals done, says the investment bank, 15 more than 2010 and more even than in the blockbuster year of 2007.  Consumer magazines also had a busy year with 32 transactions valued at $3.2 billion, a huge jump over 2010's $214 million deal value.
B-to-b media was comparatively quiet, recording only 14 deals and $50 million in value.

Hearst; Aggressive Digital, Print Growth in 2012

Hearst’s David Carey Calls for Aggressive Digital, Print Growth in 2012:
Hearst Magazines predicts successful ‘12 despite still-shaky economy. President David Carey addressed the past year and what’s next for the publisher in a letter to employees sent out this morning. According to Carey, Hearst’s aggressive growth in 2011 (including the acquisition of Lagardere and Hachette Fillappacci; the launch of HGTV Magazine; the debut of brand supplement Marie Claire @Work; and purchases of Red Aril and PayDQ) will continue in 2012.
Though digital may be considered the sexier playing field in the publishing industry, Hearst’s print portfolio will not be neglected in 2012. Aside from the forthcoming semiannual Cosmopolitan Latina, Harper’s Bazaar print presence will launch a revamped look; an increased trim size will debut in February.

Ziff Davis Buys Toolbox.com

Ziff Davis Buys Toolbox.com: Ziff Davis has acquired Scottsdale, AZ-based Toolbox.com, a knowledge-sharing network of online communities in the IT, HR and finance verticals. The deal is ZD's fourth in the last year.
Terms were not released, but former owners Corporate Executive Board bought the network, which launched in 1998, in July 2007 for $58.9 million.

Fibrek Files Circular Rejecting Bid

Fibrek files Director’s Circular rejecting the AbitibiBowater insider bid:
Fibrek Inc. announced today that its Board of Directors filed its Directors’ Circular on December 30, 2011 recommending that Fibrek shareholders REJECT the AbitibiBowater Inc. (doing business as Resolute Forest Products) unsolicited insider bid made for all issued and outstanding common shares of the company. The Board also recommended that any shareholders who have tendered their common shares WITHDRAW them immediately.
The Board has thoroughly reviewed Abitibi’s Insider Bid to determine the course of action that it believes is in the best interests of Fibrek’s shareholders and other stakeholders. Its formal recommendation and the reasons supporting such recommendation are outlined in its Directors’ Circular filed on December 30, 2011, as contemplated by securities laws.

PPI; Five Companies to Watch

Five companies to watch: As the New Year kicks off, what better place to start than to highlight the companies we at PPI think will be the ones the watch over the coming 12 months.

UPM

UPM is big in graphic papers in Europe, but it is also making huge progress elsewhere and away from the commodities based end of the paper industry. And this is why the Finnish giant appears on list of Five to Watch for 2012. UPM has garnered a reputation as being one of the most innovative in the global industry and it continues to pursue its "Biofore" strategy which it devised in recent years, which of which it says : "Bio stands for future orientation, sustainable solutions and good environmental performance. Fore stands for forest and the company's position at the forefront of development".

International Paper

Often, we look at smaller companies, those flying under the radar so to speak, to fill out this list. It's a given that the larger companies are almost always in the spotlight. However, this year PPI's long-time Number One in the Top 100 listings (PPI, September 2011) merits special attention and not only because its CEO, John Faraci, also was named Number One in the RISI Top 50 Power List (PPI, July 2011). And, Paul Herbert, CEO of Ilim Group, in which IP holds a 50% stake, was recently named Global CEO of the Year at the recent PPI Awards gala held in November.

Top 10 USPS Stories

Top 10 Stories of 2011 | USPS OIG: 
The staff at the Office of Inspector General has pulled together the list below of the top 10 postal stories for 2011.
10. Another Year, Another Loss – Even with a deferral of the retiree health payment, the Postal Service loses $5.1 billion in 2011, although $3.7 billion is changes to workers’ compensation expenses.
9. To Exigent or Not to Exigent – After federal appeals court remands the exigency case back to the PR, the Postal Service is still undecided on whether it will pursue higher than CPI rates.
8. Pension Funding in the Black – OPM projects a $13.1 billion surplus in the Postal Service’s FERS and CSRS pension accounts for 2011.
7. DVDs by Mail Not Dead Yet – Netflix is forced to backpedal after customers rail against the company’s plan to unbundle DVDs by mail.
6. GAO Just Says No Overpayment – The GAO weighs in on the debate about the Postal Service’s $75 billion CSRS overpayment, stating there was no evidence of accounting errors and returning the funds is ultimately a policy choice that impacts the federal budget.
5. Digital Media to the Rescue – Ironically, blogs such as Postal Observer and Save the Post Office are driving the debate in the area of hard copy postal issues.
4. Is Overnight Over? – The Postal Service proposes changing delivery service standards, including eliminating overnight delivery for First-Class Mail, to capture savings from network consolidation.
3. Plethora of Bills, Paucity of Law – An unprecedented interest in postal reform yields an abundance of legislative proposals, yet still no new law.
2. Cut, Cut, Cut – The Postal Service announces a provocative plan to break labor contracts, withdraw from federal health and retirement plans, and seek workforce reductions of 220,000 through layoffs and attrition.
1. Something’s Got to Give Round 1 – The Postal Service’s aggressive plans to close about 250 processing plants and more than 3,600 post offices hits strong opposition leading to a temporary moratorium on closings until May 15, 2012.

Kodak Names President

Kodak Names Laura Quatela President Alongside Faraci: Eastman Kodak Company announced that its board of directors has elected Laura Quatela as President, effective January 1, 2012.
Quatela, 54, who is currently the company’s General Counsel, will serve alongside Philip Faraci, who continues as President, a position he has held since September 2007. Both report to Kodak Chairman and Chief Executive Officer Antonio M. Perez.

St. Marys Paper in Receivership

St. Marys Paper in receivership:
On December 30, 2011 at 9am, St. Marys Paper of Sault Ste. Marie, Ontario fell into receivership after failing to provide proof of sufficient insurance coverage to the court.
The Ontario Superior Court of Justice has appointed Ernst & Young Inc. as receiver for the assets of St. Marys Paper.

Winning Bid for NewPage Post Hawkwsbury Due This Week

Successful bidder for NewPage Port Hawkesbury to be made public:
Ernst & Young is met with the four remaining bidders for the NewPage Port Hawkesbury mill and is expected to publicly announce this week the identify of the successful bidder.
Two bidders, who both want to operate the mill to some degree, are known: Paper Excellence and Pacific West Commercial Corporation (associated with Stern Partners Inc.).

China's Pulp Imports Up 18.2%

The figure was 18.2% higher than the 1.109 million tonnes recorded in November last year. Pulp imports for the first eleven months of this year totaled some 13.058 million tonnes, a surge of 27.3% from the previous year.

Chinese Recovered Paper Imports Jump 22.5%

China's total recovered paper (RCP) imports rose 30.1% to around 2.487 million tonnes in November, up from some 1.911 million tonnes the previous month, according to data from China Customs. November's figure was 22.5% higher than the 2.030 million tonnes recorded in the same month of 2010.

Wausau Will Sell Brands, Close Brokaw in Q1

Wausau Paper Enters Agreement to Sell Premium Print & Color Brands: Thw Wausau Paper Board of Directors has approved the sale of its premium Print & Color brands - including Astrobrights(R), Astroparche(R) and the Royal family of products - and closure of its Brokaw, Wisconsin, paper mill. The sale, to Neenah Paper, Inc., is scheduled to close on January 31, 2012. The Brokaw mill will be permanently closed by March 31, 2012, marking the end of the Company's material participation in the Print and Color markets. The Brokaw shutdown will affect approximately 450 hourly and salaried jobs.

Sears, Kmart First Round Closings Cut ~4,700 Jobs

Estimated 4,700 Workers May Be Cut in First Round of Sears, Kmart Closures: Sears Holdings didn't provide an estimate of how many workers will be cut as a result of the 79 store closures. However, the retailer did say that a typical store on the closure list employs 40 to 80 people. At 60 employees per store (the middle point between 40 and 80), that would mean a loss of more than 4,700 jobs — assuming that no workers transfer to other stores.

CEPIPRINT Reports November Mechanical Paper Shipments

European coated mechanical paper shipments fell -2.9% in November as compared to the same month last year.  Demand declined -7.5%, but exports increased +22.3%.  Year-to-date, shipments were up slightly by 0.7%, demand decreased -3.1%, but exports jumped +16.4%.  Supercalendered paper shipments for November fell -7%, demand declined -6.9% and exports were down -7.5%.  Y-t-D, SC shipments decreased slightly by -0.6% and demand fell -3.1%.  Exports rose +10.9%.

PRC Opinion on USPS Planned Closings

http://www.washingtonpost.com/politics/postal-services-closure-review-process-was-flawed-panel-says/2011/12/28/gIQA5oHNNP_story.html

The Postal Regulatory Commission has issued an advisory opinion on the Postal Service plan, called the Postal Service Retail Access Optimization Initiative (RAOI), to close 3,600 post offices.  The PRC’s primary finding was that the RAOI was not designed to optimize the network, so the very process was flawed; it used questionable data to identify the post offices that might be closed and lacked sufficient data and analysis to make the best decisions.   For example, the program ignored whether an alternate post office was nearby and which closures would reduce costs.  The PRC recommended the use of modern optimization tools and techniques to maximize net retail revenues while fulfilling statutory obligations.

Baldwin Technology Bought by Forsyth

Baldwin to be Acquired by Forsyth: Baldwin Technology Company, Inc., a global leader in process automation technology for the print media industry, today announced that it has entered into a definitive agreement to be acquired by Forsyth Baldwin, LLC, a company controlled by Forsyth Capital Investors, LLC.

Help from Minnesota for Verso Workers

$350,000 Available to Help Verso Workers Find New Jobs: Money that will help former Verso Paper workers retrain and find new jobs is available for those who were caught in layoffs. The Stearns-Benton Employment & Training Council has $350,000 from the Minnesota Department of Employment and Economic Development for up to 100 workers, said Sally Brenden, deputy director of the Stearns-Benton Employment & Training Council. In October, Verso Paper in Sartell announced it was shutting down two of its three paper-making machines. This month, 175 people were laid off, about 41 percent of the workers at the century-old mill.

Mark Andy Names New CEO

Mark Andy Announces Top Management Change: ST. LOUIS, MO—Dec. 21, 2011—Mark Andy Companies announced it has named PJ Desai as its new CEO effective Jan. 1, 2012. Desai spent several years of his career in various engineering and manufacturing positions in business units of the positions in business units of the Monsanto Co., including an assignment in Europe to design, construct and manage a new plant.

Some Titles See Digital Subscriptions Excel

For Some Titles, Digital Engagement Outweighs Print: 

Affinity’s American Magazine Study found that more subscribers access the digital versions than the printed for 15 magazines in their report.  (The digital category includes websites, social networks, smartphone and tablet apps, eReader apps and Zinio editions.)  At the top of the list, ranked by the number of digital subscriptions, were ESPN the Magazine, WebMD the magazine, Food Network Magazine, Money, Fortune and Forbes.  ESPN senior vice president and general manager for digital and print media John Kosner said “Unlike digital, print is constrained by the number of issues ESPN can print and circulate…” but he added, “There’s an ability with print to be authoritative, definitive, have a level of writing and editing and reflection that is hard to do…with the rapid fire website…[In print] the storytelling is better…There’s a way that photography can be revelatory in print.”  All of which left Mr. Kosner to conclude that despite the lower numbers, the print magazine “plays and invaluable role in the …product portfolio.” 

New York Times Co Sells Regional Papers

The New York Times Company Sells Regional Media Group: After The New York Times Company said it was in advanced talks to sell off its Regional Media Group, it announced late Tuesday that it has agreed to sell 16 local papers to Halifax Media Holdings for $143 million in cash.
The papers span 6 states, including 5 in Florida, 3 in California, 3 in North Carolina, 1 in South Carolina, 2 in Alabama and 2 in Louisiana.

Online Holiday Spending Up 15%

Final Christmas Push Propels US Online Holiday Spending to $35.3 Billion, Up 15%, comScore Finds: comScore has reported holiday season retail e-commerce spending for the first 56 days of the November - December 2011 holiday season. For the holiday season-to-date, $35.3 billion has been spent online, marking a 15% increase versus the corresponding days last year.

NewPage Port Hawkesbury Gets $3.3 Million

http://www.capebretonpost.com/Business/2011-12-19/article-2841803/NewPage-given-$3.3M-tax-refund/1

Nova Scotia has given the NewPage Port Hawkesbury, a Supercalendered paper mill that has been under bankruptcy protection since September, a tax refund of $3.3 million.  The company is trying to sell the mill and this money will help to keep the facility from running out of money before that happens.  Monitor Ernst & Young has also reported that Nova Scotia could step in and provide debtor-in-possession financing to conclude a sale transaction should that prove necessary.

http://times-news.com/local/x1996143757/Judge-OKs-NewPage-executive-bonuses

Separately, a federal bankruptcy court in Delaware has approved a proposal for NewPage in the U.S.; the bonus plan provides $1.5 million for 15 executives.

Sears, Kmart to Close Over 100 Stores

Sears, Kmart to Close Over 100 Stores: A lackluster Christmas season has left the company no other choice but to shutter 100 to 120 stores. Between 100 and 120 Sears and Kmart stores will be closing soon, according to the retailer on Tuesday.

M-real Closing Coated Mill

M-real shuts down its Äänekoski mill
Following the conclusion of the statutory negotiations, M-real has decided that the Äänekoski paper machine, with an annual capacity of approximately 200 000 tonnes of coated fine paper, will be closed by the end of 2011.

UPM Sells RFID Business

UPM sells its RFID business to Smartrac
UPM will become an indirect shareholder of Smartrac with a 10.6 percent economic interest through the company OEP Technologie B.V. The closing of the deal is expected to take place during the first quarter of 2012. The transaction is still subject to regulatory approvals.
Smartrac is registered in the Netherlands, and is one of the global market leaders in high-quality RFID inlays for electronic passports and contactless credit cards as well as for RFID transponders for public transport applications.

NYSE Notifies Verso

Verso Addresses NYSE Listing Standard: Verso Paper Corp. (NYSE:VRS) announced today that the New York Stock Exchange has notified the company that it has fallen below the NYSE's continued listing standard relating to market capitalization. The NYSE requires that Verso's average market capitalization over a consecutive 30 trading-day period be at least $75 million. As of December 21, 2011, the date of the NYSE notice, Verso's 30 trading-day average market capitalization was approximately $66.6 million.

The Atlantic has a Good Year

The Atlantic Has Second Profitable Year in a Row:
According to the company, digital ad revenue will be up 40 percent for the year and print ad revenue will edge up 2 percent. The events group, AtlanticLIVE, which includes the Aspen Ideas Festival, will post a 19 percent revenue increase over last year.

For the fourth quarter, which signals the thirteenth consecutive one for year-over-year growth, revenue will be up 20 percent compared to same period last year.

In 2010, The Atlantic posted its first profit in decades, driven by strong double-digit gains across its three platforms, and will do so again this year. Last year, The New York Times reported The Atlantic made a profit of $1.8 million for 2010 and while a spokesperson would not confirm that number, she says they'll beat 2010's performance this year.

Exigent Rate Held Case in Abeyance

The PRC has ordered the USPS to submit additional information regarding its filed exigent rate case (requesting an increase above CPI).  Post Master General Patrick Donahoe, who had previously said he would not implement exigent postage increases, issued a statement that the USPS will not submit further information, effectively rendering the case in abeyance.  Nothing will be done unless the USPS restarts the case.

Shoppers Spend $32 Billion Online

http://chainstoreage.com/article/comscore-reports-busiest-week-ever-online-sales

This holiday season has seen a 15% increase in online spending, as reported by comScore, in the first 48 days of the holiday season.  In the week ending December 18, shoppers spent $6.4 billion, an increase of 14%; it was the busiest week ever recorded for online purchases.

Gorham Paper & Tissue Story of Persistence

http://www.nhpr.org/post/under-new-owners-gorham-mill-hopes-show-paper-manufacturing-isnt-dead-yet-north-country

The closed Gorham, NH paper was sold by Fraser Papers to an investment firm, Patriarch Partners, which, observing the high cost of production fueled by heating (No. 6) oil, installed a natural gas line.  The Gorham Paper & Tissue mill was restarted 6 months ago, with the paper machines now powered by steam from the line.  The company has now announced a commitment to purchase a tissue machine for $35 million that will be added to the facility.

International Paper and Steelworkers Sign Agreement

http://www.usw.org/.

Following a year of negotiations, IP and the USW reached a 4-year master economic and security agreement, which was ratified by the union membership on Monday.  The contract covers approximately 5,700 workers at 43 of International Paper’s corrugated boxes and container plants.

TIME’s Style & Design Returning

TIME to Relaunch Style & Design Supplement in March 2012: After shuttering the supplement 18 months ago, TIME is relaunching Style & Design in 2012. The revamped version, to be led by TIME managing editor Rick Stengel and edited/curated by TIME staff, will debut with the March 26th issue of TIME.

President of Great Northern Paper Resigns

http://www.nhpr.org/post/under-new-owners-gorham-mill-hopes-show-paper-manufacturing-isnt-dead-yet-north-country

Great Northern Paper announced that Peter Hanson has stepped down as the company’s president.  Vice president of operations and manufacturing Everett O’Neill will replace Mr. Hanson.  Last week Mr. Hanson made an ill-received remark that a proposed 70,000-acre national park in the area did not threaten the industry.  A company spokesperson said there was no connection between Mr. Hanson’s leave-taking and his statement, but that there were "philosophical differences.”

Resolute Forest Products Reports Down Time

http://www.heraldonline.com/2011/12/20/3613103/catawba-mill-to-temporarily-shutting.html

Resolute has announced it is shutting down PM 1 at its Catawba, South Carolina mill for two weeks because of market conditions.  The paper machine, which has capacity to produce ~155,000 short tons per year of coated mechanical (LWC) paper, is the oldest unit at the facility. 

November Coated & SC Paper Shipments Down

http://www.paperage.com/2011news/12_20_2011printing_writing_afpa.html

As reported by the Pulp and Paper Products Council, North American coated mechanical paper shipments for November fell -6.3% as compared to the same month of last year.  Demand was down -8.3% and imports declined -17.7%. 

Court Filing in eBook Price Fixing Case

Publishing Insider Tipped Law Firms About eBook Price Fixing Conspiracy: The decision by major publishers to strike a pricing deal with Apple has been the source of speculation and several antitrust investigations. Now, a new court filing suggests someone inside the industry was leaking the publishers’ pricing.

Midland’s Quad/Graphics to Add 25 Jobs

Midland’s Quad/Graphics to Add 25 Jobs: Quad/Graphics Inc. plans to invest nearly $1.77 million in its Midland (MI) facility and hire 25 new employees within two years. The new investment will be in incremental presses, finishing equipment, automation and building renovations.

Quad/Graphics’ Tempt In-Store Productions Expands

http://www.businesswire.com/news/home/20111219006502/en/Tempt-Grand-Opening-Unveils-In-Store-Marketing-Powerhouse

Tempt In-Store Productions, a Quad/Graphics company that produces in-store marketing materials (signage and marketing displays) and programs, is opening a new facility in New Berlin, Wisconsin.  The facility triples the space of the previous location and the company has also purchased new presses and related equipment.  The multi-million dollar investment includes a large format digital UV press, the fastest of its kind in the world; a large format offset press, finishing equipment and fulfillment operations.

Resolute Forest Products Extends Fort Frances Shutdown

http://fftimes.com/node/247989 

Late last month, Resolute Forest Products announced it would close its two uncoated mechanical paper machines at its Fort Frances mill in Ontario for the rest of the year.  Yesterday, the company extended the shutdown to the end of January or “when market conditions improve.”  In addition to closing the ~244,000 short tons per year paper machines, the company reported that it is also now closing its kraft mill at the facility as well.

Scholastic to Publish Book Series

Scholastic to Publish Book Series with Companion Online Game: NEW YORK—Dec. 20, 2011—Scholastic, the global children’s publishing, education and media company, is launching of “Infinity Ring,” a time travel book series for readers ages eight to 12. This new endeavor combines books, an interactive “Hystorian’s Guide” map feature and an immersive online game experience in which readers travel back in time to fix history.

Third Quarter Ad Spending 0.4%

U.S. ad spending growth slowing down: Ad spending in the U.S. increased 1.5% in the first nine months of the year compared with the year-earlier period, according to data released by Kantar Media. Growth in spending is slowing, the company said. “From +4.1% in the first quarter, to +2.8% in the second quarter and now a barely palpable +0.4% for the July to September period.”

Barclays on 2012 Ad Spending

Ad agency growth to decelerate: New York—Ad agency growth will slow to about 2.9% in 2012, according to a forecast from investment bank Barclays Capital. This is down sharply from a projection of 5.6% growth this year, according to the investment bank.

USPS Gets 8 More Months to Pay

NALC: Congress postpones USPS pre-funding payment for 8-months: Over the weekend, Congress approved an omnibus spending bill to keep the government operating through September that included a provision to again move the deadline for the Postal Service’s 2011 future retiree health benefits prfunding payment for another eight months, to August. The spending measure also included language to keep the Postal Service delivering mail six days a week, rather than slashing service when the Postal Service needs to grow.

IP & Temple-Inland Extend Merger Deadline

International Paper, Temple-Inland extend date for merger:
International Paper Co. and Temple-Inland Inc. have agreed with the U.S. Justice Department to extend the review period for a merger between the two companies until Jan. 27.
The original date for the companies to finalize the merger was Dec. 31. Memphis-based International Paper also extended the internal transition deadline of the merger from June 6 to June 28.

Sappi Reports Major NA Investment

Sappi Limited announces major investment in North American operations: Sappi Limited announced 11/10/2011 the approval of a US$170 million capital project to convert the kraft pulp mill in Cloquet, Minnesota to chemical cellulose used in textile and consumer goods markets and approved capital plans that call for a US$13 million project to upgrade coated paper manufacturing at the Sappi Somerset Mill in Skowhegan, Maine.

Fibrek’s Board Rejects Resolute Bid

Fibrek’s Board rejects unsolicited insider bid by AbitibiBowater:
Fibrek Inc. announced today that its Board of Directors has unanimously rejected the unsolicited insider bid of AbitibiBowater Inc. (carrying on business as Resolute Forest Products) for all issued and outstanding common shares of the company.

Resolute Forest Products Workers Unite

Canadian/American Resolute Forest Products workers unite:
American and Canadian union members who work for forest industry giant Resolute Forest Products (formerly AbitibiBowater) have joined forces to “speak with one voice” to the company.

About 100 union delegates from 10 Canadian Resolute mills in Ontario, Quebec and Nova Scotia and 4 US mills in Georgia, South Carolina, Tennessee and Alabama met this weekend in Montreal and adopted a solidarity pledge to work to coordinate activities and work together leading to 2014 pattern and master agreement negotiations with the company in both countries.

Stora Enso's Langerbrugge SC PM Rebuild

PMT Italia to upgrade PM3 press section at Stora Enso's Langerbrugge mill in Gent, Belgium: Stora Enso Langerbrugge Mill located in Gent, Belgium has selected PMT Italia S.p.A. as the supplier for the PM 3 Press Section Upgrade.The start-up is planned for March 2012. PM3, a 6,5 m wide machine producing SC paper, will be rebuilt by partly replacing the existing Press Section steel framework with a completely new stainless steel one, giving PM3 a longer life time and providing the necessary flexibility for future implementations as well as the development in press technology.

Wausau Paper Sells Remaining Timberlands

Wausau Paper Selling Timberland Holdings:
Wausau Paper is selling its remaining timberland holdings. According to a news release from the company, it totals about 80,200 acres in Northern Wisconsin worth $42.9 million.

Editor-in-Chief Named for Everyday with Rachael Ray

Meredith Hires Lauren Purcell as EIC of Everyday with Rachael Ray: Meredith Corp. has found its editor-in-chief for Everyday with Rachael Ray. Lauren Purcell, who was most recently executive editor at Condé Nast's Self, will start January 9.

USPS, Two Postal Unions Extend Talks Again

USPS, Two Postal Unions Extend Contract Talks: The Postal Service and two of its major unions have agreed to extend separate labor contract negotiations until Jan. 20, 2012. Contracts with the National Association of Letter Carriers and the National Postal Mail Handlers Union expired at midnight Sun., Nov. 20, 2011. The deadline for the talks has been extended twice before.

Magazine & Catalogue News Roundup

Magazine and Catalogue News Roundup

Reader’s Digest Association is cutting 150 positions, half of which are in the U.S., by the end of the year.  The company said the moves are part of its plan to focus on its core, or “master”, brands, Reader’s Digest, Taste of Home and The Family Handyman.

Source Interlink ‘s GrindMedia has acquired Baseball America, which is published 26 times a year and has an average circulation of 32,300.

Oriental Trading Co., the largest direct retailer of party supplies, arts and crafts, toys and novelties in the U.S., is introducing new digital catalogues accessible via iPads.

Hearst has purchased a Commander CL offset press from Koeing & Bauer AG for its Albany Times Union newspaper.  The press is scheduled to come online in 2013.

F+W Media acquired Script Magazine from Final Draft.  Terms of the deal were not disclosed.  The magazine will no longer be printed; subscribers will receive Writer’s Digest in its stead.

American Media announced a new printing schedule for its OK magazine, a move designed to cut costs; the title will be printed almost a week before it goes to newsstands, unlike other celebrity weeklies, which wait as long as possible before initiating the production process.

Immediate Media’s Top Gear and Aurasma have created “a fully augmented print magazine.”  After downloading a free app, readers can point their smart phones or tablets at the printed pages of the magazine and see highlights from the Top Gear television show.

Summit Business Media is closing its Florida Underwriter magazine after its December issue.  The title focused on the insurance industry.

New York Times CEO Janet Robinson is stepping down by the end of the year.  Chairman and publisher Arthur Sulzberger Jr. will assume the responsibilities of the position until a new CEO is found.

TIME has named Michael Duffy as Executive Editor.  Mr. Duffy is currently the Washington Bureau Chief.

The Virginia Quarterly Review has named Jon Parrish Peede as publisher.  Mr. Peede was the director of literature for the National Endowment of the Arts.

Vertis Closing Plant

The Vertis Communications plant in Saugerties, NY will close Jan. 7 because, they said, of economic conditions. The plant employs 150 people and produces advertising inserts.

Digital Production Print in 2011

The close of the year end is always a good time to look up from dayto-day business and review the important news that happened during the year. Overall 2011 proved to be a pretty decent year for digital production printing. Installations of digital production printing equipment were on the rise again, after recovering from a drop in 2009 in the aftermath of the financial crisis.

NRF Expects Sales to Rise 3.8%

The National Retail Federation has revised its holiday forecast upward, expecting holiday sales to rise 3.8% this year to a record $469.1 billion. NRF's initial forecast, announced on Oct. 6, called for anticipated sales growth of 2.8%. A 3.8% sales increase is considerably above the ten-year average sales increase of 2.6%.

$1.1 Billion Spent Online for Green Monday

comScore has reported holiday season retail e-commerce spending for the first 42 days of the November - December 2011 holiday season. For the holiday season-to-date through December 12, $26.8 billion has been spent online, marking a 15% increase versus the corresponding days last year.

Commercial Printing Profits Up Eight Consecutive Quarters

US commercial printing industry profits were up in the third quarter of 2011, marking the eighth consecutive quarter of positive results. Though the industry has been going through hard times in terms of sales, rising profits have been a sign of the industry’s restructuring and the departure of its weakest establishments.

For the last four quarters, inflation-adjusted profits were $3.96 billion, and finally exceeded the low level of 2005. These were the best four-quarter profits level since the four-quarter period ending in 2007, when profits were $4.3 billion, and inflation adjusted sales were $112 billion, about $27 billion more than the $85 billion that has been estimated for 2011.

Reader's Digest Makes Job Cuts

Reader's Digest has eliminated 150 positions across all of its business groups worldwide, with half the cuts affecting jobs in the U.S. and the other half international.
The cuts are aligned with an effort to focus on the company’s “master brands,” including Reader’s Digest, Taste of Home and The Family Handyman, “that have the greatest potential to grow across multiple platforms and through new revenue streams, such as partnerships and licensing in markets around the world,” a Reader’s Digest spokesperson writes in an email to FOLIO.

Resolute Forest Products Moves Forward in Fibrek Acquisition

Resolute Forest Products (formerly AbitibiBowater) has formally commenced its offer to buy all issued and outstanding shares of Fibrek Inc., a producer of market pulp.  Based on Fibrek’s most recent publicly disclosed number of shares, the maximum amount of cash available under the offer is C$71,541,556. 

Catalyst Paper Reviewing Debt Structure, Defers Interest Payment

Catalyst Paper reported that while it continues its review of alternatives to address its capital structure, it will defer the ~$21 million interest payment on its outstanding 11% Senior Secured Notes due 2016 and Class B 11% Senior Secured Notes also due 2016.  The payment is due today.  The company said operations are expected to continue as usual and obligations to customers, suppliers and employees will be met in ordinary course.  Catalyst has 30 days within which to make the interest payment before triggering default.  Failure to do so would allow 2016 Note holders to declare the $390 million principal and accrued interest immediately due and payable.  If that demand were not satisfied in thirty days, it would constitute a default under the indenture relating to the company’s $250 million outstanding 7.375% Senior Notes due 2014.

Hearst’s Popular Mechanics Tries Personalized Ads

Though magazines have had the ability to publish customized editions for some time, the technology is evolving, allowing for less expensive production of individualized copies with, importantly, accountability measures to track results, always a key for advertisers.

300,000 subscribers to Popular Mechanics received customized content with their November issues; the magazine was bundled with an outsert from Hewlett-Packard that featured the recipient’s name and a scene of their hometown.  A 16-page insert in the magazine informed the reader of specific locations for HP products.  The promotion also contained URLs directing subscribers to an online contest, providing some indication (and measurement) of interest in the ads; 3% entered the contest, but 85% of the contestants clicked on QR codes in the insert that linked to more information on HP printers.

http://www.adweek.com/news/press/can-personalized-ads-save-magazines-137134

Source Interlink’s Buys Baseball America

In a move to expand its traditional sports portfolio, Source Interlink's GrindMedia bought Baseball America magazine and accompanying properties. Baseball America’s original staff will remain in the magazine’s Durham, North Carolina-based offices.

Heidelberg to Launch Digital Printing Portfolio

Heidelberger Druckmaschinen AG (Heidelberg) is on the final stretch with the international market launch of its digital printing portfolio and is due to complete this by drupa 2012. The portfolio comprises the Ricoh Pro C901 Graphic Arts Edition digital printing system and the new Pro C751 series, which is available in the Pro C751, Pro C751 EX, and Pro C651 EX versions.

CEPIPRINT and CEPIFINE Merge into Euro-Graph

CEPIPRINT, the Association of European publication paper producers and CEPIFINE, the Confederation of European fine paper industries announced recently that on the 1st of January 2012 they will join forces to create a new Association based in Brussels. The Association, to be known as Euro-Graph, will represent over 30 companies, operating well over 100 paper mills in Europe, with an annual capacity of approximately 45 million tonnes of graphic papers.

RR Donnelley Gets New Contract with IMG

R. R. Donnelley & Sons Company today announced that it has been awarded a new multi-year multi-million dollar agreement by IMG, a global sports, fashion and media business with nearly 3,000 employees operating in 30 countries around the globe. Under the terms of the agreement IMG will draw on the resources of RR Donnelley's domestic and international platform for digital and interactive initiatives and other content production and distribution including magazines, direct response, event marketing materials and more.