Resolute Forest Products (AbitibiBowater) has announced that is would issue a notice of variation to the offer circular and other ancillary documentation in connection with its outstanding offer to acquire Fibrek Inc. The company said the documents would describe certain changes with the sole purpose of addressing comments from the SEC. CEO Richard Garneau said the action “does not change our firm belief that the offer we announced on November 28th presents Fibrek’s shareholders with a compelling opportunity. The fact that three of their largest individual shareholders, representing approximately 46% of the outstanding shares, have agreed to tender their shares to our offer supports that belief.”
Tuesday, January 10, 2012
Second NBSK Producer Lowers Price
Resolute Forest Products announced a $20 per metric tonne decrease in its price for NBSK pulp in North America, effective with January shipments. Canfor reported it was lowering their price yesterday.
No Help from Nova Scotia for Port Hawkesbury Pension
Ron Stern of Stern Partners, the final bidder in the sale of the NewPage Port Hawkesbury Supercalendered paper mill, has indicated that the firm cannot assume the costs of the pension plan for the union workers and run the facility profitably. The successful sale of the property is contingent on coming to an agreement with the workers on this matter, among other stipulations. Now, the Premier of Nova Scotia, Darrell Dexter, has said that the province, which has spent ~C$15 million so far to keep the condition of the mill such that it can be restarted quickly, cannot cover the pension plan liabilities.
Standard Register Installs 4 HP Indigo Digital Presses
Standard Register Installs Four HP Indigo Digital Presses: PALO ALTO, CA—Jan. 10, 2012—Standard Register, a leading U.S. provider of communications management solutions, has installed four HP Indigo digital presses to produce color-critical, personalized collateral for a broad base of clients.
Magazines Find New Way to Sell Back Issues
Tablets Helping Publishers Sell Back Issues: When Apple launched the tablet, single copies were the only way most magazines were available, and the consumer backlash was brutal. But now, single issues have turned out to be a good way of selling back copies of magazines.
Kodak Simplifies Its Business Structure
Kodak Simplifies Its Business Structure to Accelerate Digital Transformation: ROCHESTER, NY—Jan. 10, 2012—Eastman Kodak announced the creation of a new and simpler business structure designed to increase productivity, reduce cost and accelerate its transformation into a digital company that delivers sustainable.
F+W Buys World Tea Media
F+W Buys World Tea Media: F+W Media, a Blue Ash, Ohio-based media company serving enthusiasts in about 20 verticals including antiques and collectibles, crafts, writing and horticulture, has acquired World Tea Media, organizer of the World Tea Expo.
A New Model for Ladies’ Home Journal
Ladies’ Home Journal to Move to Reader-Produced Content Model: In a new twist on the user generated content model, Meredith’s Ladies’ Home Journal is turning over editorial reins to its readers. As of its March issue, almost every story featured in the magazine will include some audience contribution.
Monday, January 9, 2012
European Demand for Uncoated Grades Falls
As reported by CEPIFINR, European coated woodfree (freesheet) paper shipments for November declined -1.2% as compared to the same month last year. Demand was down -3.9% and exports fell -9.9%. Year-to-date, shipments decreased -4.8% as compared to the same period in 2010, demand was down -6.8% and exports fell -7.8%. Uncoated woodfree paper shipments for November declined -5.5%, demand decreased -6.6% and exports fell -7.3%. Year-to-date, shipments were down -2.7%, and demand decreased -6.3%, but exports jumped +7.4%.
Verso Renewable Energy Project Completed
http://www.paperage.com/2012news/01_09_2012verso_paper_energy.html
Verso’s $45 million renewable energy project at its coated freesheet mill in Quinnesec, Michgan has been concluded. The plan included design upgrades to the facility’s existing combination boiler, a new biomass handling system and a new turbine generator. The project will now allow the mill to use renewable biofuel for more than 95% of its on-site electricity generation.
Canfor Reports Another Cut in NBSK Pulp Pricing
Canfor is lowering the price of January shipments of NBSK pulp in the U.S. by $20 per metric tonne.
Bowater Mersy Newsprint Mill Stays Closed
Bowater Mersey extends shut down until Jan 16:
Bowater Mersey had extended its shut down until January 16.
The Nova Scotia mill has been shut down since Christmas.
Bowater Mersey had extended its shut down until January 16.
The Nova Scotia mill has been shut down since Christmas.
White Birch Paper Proposal to Union
White Birch Paper Company presents global proposal to union employees of idled Stadacona Mill:
White Birch Paper Company has announced that it has presented a global proposal to the employees of the idled Stadacona mill in Quebec City.
Following a thorough analysis of the mill’s cost structure, White Birch’s proposal represents the final opportunity to implement the savings necessary for Stadacona to avoid permanent closure in light of significant manufacturing cost disadvantages, as well as the ongoing deterioration of economic conditions in the newsprint industry.
White Birch Paper Company has announced that it has presented a global proposal to the employees of the idled Stadacona mill in Quebec City.
Following a thorough analysis of the mill’s cost structure, White Birch’s proposal represents the final opportunity to implement the savings necessary for Stadacona to avoid permanent closure in light of significant manufacturing cost disadvantages, as well as the ongoing deterioration of economic conditions in the newsprint industry.
Vistaprint Buying Webs, Inc.
Vistaprint Agrees to Acquire Webs, Inc.: Vistaprint N.V., a leading online provider of professional marketing products and services to micro businesses, and Webs, Inc., the popular, do-it-yourself suite of websites, Facebook Pages and mobile presence solutions for small businesses, today announced the companies have entered into a definitive agreement in which Vistaprint will acquire Webs for $117.5 million payable at closing. The consideration will be paid through a combination of cash and restricted shares.
USPS Gives New Payment Options to Major Direct Mailers
USPS to offer credit billing to direct mailers: Washington, D.C.—The U.S. Postal Service has been granted permission to allow postage credit billing to direct mailers rather than requiring postage prepayment.
Friday, January 6, 2012
Ron Stern, Stern Partners Comments on NewPage Port Hawkesbury SC Mill
http://www.capebretonpost.com/News/Local/2012-01-05/article-2855999/NewPage-could-be-in-production-by-late-spring,-says-bidder/1
As reported yesterday, Stern Partner’s Pacific West Commercial was selected as the final bidder in the sale of the NewPage Post Hawkesbury mill. The facility has the capacity to produce approximately a quarter of the Supercalendered paper used in the U.S. Ron Stern, president of Stern Partners, had an interview with the Cape Breton Post, the newspaper serving the region in which the mill is located. He confirmed, as reported yesterday, that energy and labor cost negotiations are key to restarting: “There’s good reason to do it [restart] as soon as possible…It’s a terrific machine, the physical plant there is really world-class. It’s probably as good a machine as there is in North America…hopefully we can come up with a plan that also makes it very competitive.” Stern said it will be necessary to operate it at the lowest cost possible. That will include working with Nova Scotia Power in reviewing the mill’s operations to see how it can reduce its electricity costs, which amounted to $100 million last year. The company is not willing to take on unfunded pension liabilities for the mill’s four plans: “The economics don’t work ... the cost to the mill of funding over $100 million in unfunded pension liabilities would just overwhelm it, it would more than set off most of the gains we’re trying to make.” Regarding fiber, he said “Talks with the province regarding access to Crown lands are going well.” Natural Resources Minister Charlie Parker said Wednesday the company could potentially be given access to less land than the 600,000 hectares that NewPage managed.
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.
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.
Thursday, January 5, 2012
Pacific West Commercial Wins Bid for NewPage Post Hawkesbury
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.
Wednesday, January 4, 2012
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.
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.
Tuesday, January 3, 2012
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.
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.
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.
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.
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.
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.
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.
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.
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.).
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.).
Friday, December 30, 2011
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.
Thursday, December 29, 2011
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.
Wednesday, December 28, 2011
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.
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.
Tuesday, December 27, 2011
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.
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.
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.
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.
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.
Wednesday, December 21, 2011
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
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
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
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
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.
Tuesday, December 20, 2011
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.
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