Wednesday, June 26, 2013

AF&PA Reports U.S. P&W Shipments

The American Forest & Paper Association has released its May 2013 Printing-Writing Paper Report.
According to the report, total printing-writing paper shipments were down 7 percent compared to May 2012, with total inventory levels increasing 1 percent from April.
Additional key findings: 
Coated mechanical (CM) shipments in May decreased 13 percent compared to May 2012. Shipments of CM are down 12 percent for the year, with imports through April up 14 percent.
May shipments of coated free sheet (CFS) papers decreased 2 percent compared to May 2012, with year-to-date CFS shipments up less than 1 percent compared to 2012. Imports of CFS papers increased 22 percent in April compared to the same period last year.
Uncoated free sheet (UFS) paper shipments decreased 5 percent year-over-year in May. For the year, shipments are down 4 percent in 2013. Imports of UFS in April increased 26 percent compared to April 2012. 

May uncoated mechanical (UM) paper shipments decreased 11 percent when compared to May 2012, with year-over-year imports through April up 5 percent.

EURO-GRAPH Reports P&W Shipments

EURO-GRAPH has reported European coated mechanical paper shipments declined -13.1% in May, as compared to the same month last year. Demand fell -14.7% for the month and exports were down -8.3%. Coated woodfree paper shipments decreased -8.8% and demand declined -13.9%. Exports rose +10.9%. Supercalendered paper shipments were down -9.6%, demand decreased -8.5% and exports fell -8.5%. Uncoated woodfree shipments were down -5.9% and demand fell -9.4%. Exports increased +27.5%.

Verso Addresses NYSE's Determination

Verso Addresses NYSE's Determination to Commence Delisting Proceedings: Verso Paper Corp. announced today that the New York Stock Exchange has determined to commence proceedings to delist Verso's common stock from the NYSE due to Verso's failure to satisfy the NYSE's continued listing standard relating to market capitalization. As previously disclosed, on December 21, 2011, the NYSE initially notified Verso that it had fallen below the NYSE's continued listing standard relating to market capitalization. To maintain the listing, the NYSE requires that Verso have an average market capitalization over a consecutive 30 trading-day period of at least $75 million. On February 6, 2012, Verso submitted to the NYSE a plan to achieve compliance with the market capitalization standard within 18 months after the initial notice from the NYSE, and the NYSE notified Verso of its approval of the plan on March 16, 2012. Verso's market capitalization exceeded the $75 million requirement during much of the 18-month plan period; however, it was not able to maintain such level at the end of the plan period as required by the NYSE. As of June 21, 2013, the last day of the plan period, Verso's 30 trading-day average market capitalization was $60.5 million.

Falling Loonie Boost for Catalyst

As the Canadian dollar is falling to almost a two-year low, Catalyst Paper, one the Alberni Valley's largest producers of jobs, is riding a bit of a high. 
As of Monday morning, the Canadian dollar is trading at 95.04 cents U.S., down 0.60 of a cent from Friday's close against the U.S. greenback. 
It is the lowest the loonie has traded at since October 2011.
And while a drop like that can be painful in the stock market, it is a big money maker for parts of the local industry that manufacture in Canadian dollars, but sell in American. 
"It's good for us," said Catalyst CEO Kevin Clarke, who is stepping down at the end of the month. "Every cent it weakens against the U.S. dollar, because we sell everything in U.S. dollars, is a positive on a weighted average base of about between six and seven million dollars a year."

Domtar's CEO Supports Call for Climate Action

Domtar's President and CEO, John D. Williams, offered his support for the Obama Administration's proposal to develop a more certain path for reducing greenhouse gas emissions.
"The President is correct that America is uniquely suited to find sensible solutions for addressing this issue," said Williams. "The forest products industry has voluntarily made significant reductions in its reliance on fossil fuels over the past decade. We are better utilizing the energy value of our biomass by-products which are carbon neutral over the long term, making our industry more sustainable economically and environmentally.

U.S. Ad Spend Holds

U.S. advertising spending in the first quarter of 2013 was virtually the same as a year ago -- with the second and third quarters also appearing murky.
Kantar Media says spending inched lower by 0.1% to stop at $30.2 million -- with the better performers including cable TV, Spanish-language TV and outdoor. 
Looking forward, Jon Swallen, chief research officer at Kantar Media North America, states: “Data from the early second quarter are mixed, suggesting marketers are still being cautious and conservative with ad budgets. However, there are some bright spots, including healthy growth for Hispanic media and outdoor.

Neiman Marcus Plans IPO

Luxury department store operator Neiman Marcus Inc. on Monday disclosed plans for a proposed public offering of up to $100 million. 
The retailer’s plan, announced in a regulatory filing, comes some eight years after it was acquired for $5.1 billion by private equity firms TPG Capital and Warburg Pincus. In its filing, Neiman Marcus indicated a desire to expand its outlet center concept, Last Call, which currently operates 35 locations.

Young Americans Still Turn to Printed Books

Younger Americans—those ages 16-29—exhibit a fascinating mix of habits and preferences when it comes to reading, libraries, and technology. Almost all Americans under age 30 are online, and they are more likely than older patrons to use libraries’ computer and internet connections; however, they are also still closely bound to print, as three-quarters (75%) of younger Americans say they have read at least one book in print in the past year, compared with 64% of adults ages 30 and older.

Large Newspapers See Gains

Executives at some of the nation’s largest newspaper companies say they are more hopeful about their future after seeing readership grow for digital subscriptions.
Speaking at the American Society of News Editors’ annual convention, the newspaper executives said Monday that increased use of their digital products is resulting in higher revenue.

Canadian Gov. Invests in Biofuel Production

Under FedDev Ontario's Investing in Business Innovation (IBI) initiative, Woodland Biofuels will receive a repayable contribution of up to $800,000 to operate a plant to demonstrate the efficiency and scalability of cellulosic ethanol production using its unique technology. The patented technology uses a series of chemical reaction steps to produce cellulosic ethanol biofuel from plant materials, including agricultural and forestry waste. Through the plant's operations, Woodland Biofuels will determine the optimal processes and procedures for producing cellulosic ethanol, preparing the company to construct commercial plants and licence others to build plants that use Woodland's technology.

Why We Should Care About Saving the USPS

Why We Should Give a Damn About Saving the USPS:
"Print is dead." I hear it all the time. People love to say it. "No one reads magazines anymore."Here's the thing, though: Print isn't dead—at least not yet. Digital is growing at an aggressive rate, but it hasn't obliterated print. In fact, according to a recent survey by AdWeek, 98.6 percent of all magazine consumption is still rooted in print. And with the majority of magazine readers reading print, then publishers still need to be concerned with mailing a print product—even if it feels like the U.S. Postal Service can't get it together. 
It's not the USPS that failed us—it's Congress. The USPS can't make any major moves without its approval. We've all read the stories—the USPS isn't really broke; it's just been mandated by congress that it pre-fund future retiree health benefits, which costs the USPS over $5 billion per year. This is something no other federal agency is required to do; in fact, even few corporate plans are fully-prefunded. Esquire, Forbes and even my publication, The Nation have all covered it. And Senators Bernie Sanders (D-VT) and Peter DeFazio (D-OR) are jointly sponsoring legislation which would reverse the mandate.
See, the discounted rates to mail magazines...were set up as a tactical way to honor the freedom of the press and to give a price break to media outlets educating the public...
Let me be clear: Just because Congress has turned the USPS into a model of inefficiency does not mean that I support privatization...What it means is that we should treat the USPS like any other company that is faced with necessary changes. Let's remove the $5.5 billion/year roadblock to let it do its job and grow. Let's support a Congress that values a free press; that isn't focusing on slash-and-burn techniques to save the institution, but rather gives it room to adapt; that reinvigorates the USPS's role in American communities, rural and urban...

Tuesday, June 25, 2013

FutureMark Secures Supply of Recovered Paper

FutureMark Paper Group said that it is now securing approximately 50% of the recovered paper needed to run its business through long-term purchase agreements.
“These types of agreements are highly unusual maybe — even unheard of — in recovered paper markets, but we believe they're going to be instrumental in ensuring the long-term health of U.S. recycled paper companies,” said Steve Silver, President and CEO of FutureMark Paper Group. 
FutureMark Paper Group pioneers a new practice for buying recovered waste paper through multiyear purchase agreements with stable cost
Using such agreements, the company now secures more than 50% of the recovered paper needed to operate its two recycled paper-making facilities.
Waste Management is latest firm with whom FutureMark has signed long-term purchase agreements; provides Waste Management with a stable outlet for its clients' recovered fiber, as well as a predictable revenue stream.
FutureMark's long-term, cost-stabilized purchase agreements for waste paper provide the company with supply assurance and cost predictability; insulates the company from extreme volatility in waste paper cost, which in the past has fluctuated by more than 300% over a two-year stretch.
FutureMark asserts long-term waste paper purchase agreements such as the ones it is pioneering will prove instrumental in helping U.S. recycled paper companies protect their long-term financial health. 

Newton Falls Mill Dismantled

The paper machines at Newton Falls Fine Paper are being dismantled and removed, forcing the St. Lawrence County Industrial Development Agency to give up on trying to persuade the mill's owner to resell it as a turn-key business and focus instead on reuse of the site.
"There's no possibility for the facility to have productive capability as a paper mill," IDA Executive Director Patrick J. Kelly said. "Finding ways to redirect the site is obviously a priority."
Sale of the mill intact collapsed in March, and its owner, Scotia Investments, Halifax, Nova Scotia, began liquidating the assets it sold at auction. The IDA had hoped for a while that either the buyers of the paper machines would change their minds about the equipment or that Scotia would rethink the sale. In the meantime, a scrapping operation has begun.

IP Pipeline Draws Local Opposition

More than 100 Cornwall residents packed their school cafeteria on Wednesday, June 19, to send a collective message to Vermont Gas Systems: We don't want your proposed pipeline and we are prepared to go to the courts and/or engage in civil disobedience to stop it.

APRIL Comments on Withdrawal from FSC

We (APRIL) note a statement posted on FSC websites on 22 June 2013, referencing withdrawal from FSC by companies associated with APRIL, stating " no reason for the withdrawal was offered ".
The decision by APRIL and companies associated with APRIL not to hold or seek FSC CoC/CW certification for the foreseeable future is based on concerns about the FSC's Policy for Association.
This renders ineligible for FSC certification companies which are part of a group that has converted more than 10,000 hectares within the past five years...
APRIL and many other companies in Indonesia are working towards developing a renewable and sustainable plantation fibre supply to meet the fibre needs of the future...
We ask FSC to consider these points. APRIL remains open to constructive dialogue with FSC.

Appvion, Inc. Announces Amendments to Offer

Appvion, Inc. Announces Amendments To Tender Offer And Consent...:
Concurrently, the Company announced the termination of its previously announced tender offer to purchase any and all of its outstanding 9.75% Senior Subordinated Notes due 2014 and 11.25% Second Lien Notes due 2015 and consent solicitation to effect certain proposed amendments to the indenture governing the Second Lien Notes .

Arctic Paper’s CEO Resigns

Arctic Paper’s CEO resigns
Michał Jarczyński, CEO of Arctic Paper S.A., has submitted his resignation, effective on 15th July 2013 of this year. Meanwhile, the Supervisory Board has entrusted the function of acting CEO of Arctic Paper to Mr Wolfgang Lübbert the current Member of Management Board and Sales & Marketing Director.

BlackRock’s Share of UPM Over 5%

UPM-Kymmene Corporation (Business ID 1041090-0) has on 10 April 2013 received an announcement under Chapter 9, Section 5 of the Securities Markets Act, according to which BlackRock Inc.’s indirect holding in UPM has gone above the threshold of 5 per cent on 9 April 2013. 
According to the announcement, the indirect holding of BlackRock Inc. (USA Tax ID 32-0174421, SEC CIK Code#: 0001364742) in UPM has increased from 26,245,672 shares to 26,438,944 shares, corresponding to 5.006 per cent of UPM's shares and voting rights.

Layoffs Hit BSA’s Boy’s Life, Scouting

Layoffs Hit BSA’s Boy’s Life, Scouting:
The Boy Scouts of America are cutting more than 30 positions from the staff of its two flagship magazines—Boy's Life and Scouting—and its communications department, FOLIO: has learned.
BSA says 17 people were laid off on June 10, with another 17 expected to come by the end of the year. A spokesman would not confirm the positions of those being terminated.

Bloomberg Businessweek Launches Hong Kong Edition

Bloomberg Businessweek Launches Hong Kong Edition:
Bloomberg Businessweek will soon be launching a new edition in Hong Kong. The magazine, Bloomberg Businessweek/Chinese Edition, will be distributed weekly starting June 26, 2013.
The traditional Chinese-language version of Bloomberg Businessweek was announced along with a new licensing agreement with Modern Media Holdings Limited. This edition will focus on local business and financial content, and will be available across mobile and tablet platforms.

Ennis Reports Q1 Results

Ennis Q1 Profit Rises: The Company's consolidated net sales for the quarter were $138.5 million compared to $142.5 million for the same quarter last year and $123.6 million for the sequential quarter. Print sales were down 6.8% on a comparable quarter basis, from $87.3 million to $81.4 million, but were up 2.0% on a sequential quarter basis from $79.8 million. Apparel sales increased 3.3% for the comparable quarter, from $55.2 million to $57.0 million, with a 10.6% increase in volume offset by a pricing decline of 7.3%, and increased 29.8% on a sequential quarter basis from $43.9 million.

A Multiplicity of Magazine Covers

HOW many front covers does a magazine have? The logical answer — one — is outdated. 
In an effort to woo readers — and generate additional advertising revenue — magazines are being published with two, three, four or more front covers, typically appearing one after another as if a printing press had run amok.
At first, a magazine with more than one front cover seems like a house with more than one front door. But there are many reasons for readers and marketers to embrace the concept, as evidenced by a growing acceptance among industry stalwarts like Condé Nast, Hearst, Meredith and Time Inc.

Survey: Profile of the New Print Buyer

The role of print in the marketing mix is changing. This coincides with a diffusion of responsibility for marketing and marketing decisions. As a result, print buying is changing. While many organizations still have “print buyers” whose primary—if not only—responsibility is purchasing print, increasingly it is not their primary function. In addition, print is purchased by other corporate professionals, such as marketers, for whom print is a small part of a larger project. How print is bought is also shifting. Print buyers are purchasing more print online, through internal corporate portals as well as directly with print providers. 
What is it that these new print buyers want? Are they, in fact, interested in value-added services? And if so, which? What percentage of their time is spent on print-related activity?  What other responsibilities do they typically have? How has their corporate print budget changed in the past three years – and what will happen to it during the next three?

"Old Media" Print Publisher Up 45% YTD?

Due to the popularity of e-mail and tablet computers commercial printing is in secular decline. Therefore it seemed unusual to the Mad Money host that R.R. Donnelley & Sons, the largest commercial printer in America, has rallied 45% year-to-date. 
Jim Cramer enjoys few things more than more than a good mystery, so he put on his detective hat and dug through the facts. Here's what he's found. 
First and foremost, Cramer learned that print publishing is still a $110 billion industry here in the United States. "While the web is making print less necessary, Corporate America still generates a massive amount of paper, and packaging and pamphlets and labels."

Should You Join The Fight to Defeat Online Tax Bill?

I do not often get invited to meet with politicians about pending legislation, but next week I will have the rare pleasure of sitting down to discuss the Marketplace Fairness Act. In preparation for the meeting, I asked Terri Alpert, an active opponent of the bill, to educate me about what is at stake for small businesses. Alpert is a well-respected CEO in Connecticut who has built two top-shelf brands (Uno Alla Volta and Artisan Table) that do over $14 million in sales, and employ more than fifty people year-round. If this bill has her spooked, I need to know why.

She cited the following changes as the minimum required to make the legislation palatable for small companies:
Standardized definitions of what is taxable and what is not across all states.
Standardized tax holidays.
One rate per state.
One standardized tax return.
Audits only by the home state.

Newspaper Trends Survey: The Highs and Lows

Newspaper Trends Survey: The Highs and Lows:
The annual World Press Trends survey of the World Association of Newspapers and News Publishers (WAN-IFRA) finds print newspaper circulations continued to rise in Asia while they decline in mature markets in the West.
The World Press Trends survey analyzed data from more than 70 countries, accounting for more than 90 per cent of the global industry's value. Additional survey findings: 
MORE THAN HALF THE WORLD'S POPULATION READS A DAILY NEWSPAPER, 2.5 billion in print, more than 600 million in digital form.
The newspaper industry generates more than US$200 billion of revenue annually; Circulation and advertising performance vary widely by region.
The annual World Press Trends survey of the World Association of Newspapers and News Publishers (WAN-IFRA) finds print newspaper circulations continued to rise in Asia while they decline in mature markets in the West.

An analysis of the World Press Trends data shows that news sites enjoy high readership, but the level of reader engagement is low. Digital platforms have increased the audience for newspaper content, but this growth is not being followed by a growth in advertising revenues.

The World Press Trends survey analyzed data from more than 70 countries, accounting for more than 90 per cent of the global industry's value. Additional survey findings:

MORE THAN HALF THE WORLD'S POPULATION READS A DAILY NEWSPAPER
 
  • More than half the world's adult population read a daily newspaper: 2.5 billion in print, more than 600 million in digital form.
 
  • The newspaper industry generates more than US$200 billion of revenue annually; Circulation and advertising performance vary widely by region.
- See more at: http://printinthemix.com/Fastfacts/Show/738#sthash.8abM7crY.dpuf
The annual World Press Trends survey of the World Association of Newspapers and News Publishers (WAN-IFRA) finds print newspaper circulations continued to rise in Asia while they decline in mature markets in the West.

An analysis of the World Press Trends data shows that news sites enjoy high readership, but the level of reader engagement is low. Digital platforms have increased the audience for newspaper content, but this growth is not being followed by a growth in advertising revenues.

The World Press Trends survey analyzed data from more than 70 countries, accounting for more than 90 per cent of the global industry's value. Additional survey findings:

MORE THAN HALF THE WORLD'S POPULATION READS A DAILY NEWSPAPER
 
  • More than half the world's adult population read a daily newspaper: 2.5 billion in print, more than 600 million in digital form.
 
  • The newspaper industry generates more than US$200 billion of revenue annually; Circulation and advertising performance vary widely by region.
- See more at: http://printinthemix.com/Fastfacts/Show/738#sthash.8abM7crY.dpuf
The annual World Press Trends survey of the World Association of Newspapers and News Publishers (WAN-IFRA) finds print newspaper circulations continued to rise in Asia while they decline in mature markets in the West.

An analysis of the World Press Trends data shows that news sites enjoy high readership, but the level of reader engagement is low. Digital platforms have increased the audience for newspaper content, but this growth is not being followed by a growth in advertising revenues.

The World Press Trends survey analyzed data from more than 70 countries, accounting for more than 90 per cent of the global industry's value. Additional survey findings:

MORE THAN HALF THE WORLD'S POPULATION READS A DAILY NEWSPAPER
 
  • More than half the world's adult population read a daily newspaper: 2.5 billion in print, more than 600 million in digital form.
 
  • The newspaper industry generates more than US$200 billion of revenue annually; Circulation and advertising performance vary widely by region.
- See more at: http://printinthemix.com/Fastfacts/Show/738#sthash.8abM7crY.dpuf
The annual World Press Trends survey of the World Association of Newspapers and News Publishers (WAN-IFRA) finds print newspaper circulations continued to rise in Asia while they decline in mature markets in the West.

An analysis of the World Press Trends data shows that news sites enjoy high readership, but the level of reader engagement is low. Digital platforms have increased the audience for newspaper content, but this growth is not being followed by a growth in advertising revenues.

The World Press Trends survey analyzed data from more than 70 countries, accounting for more than 90 per cent of the global industry's value. Additional survey findings:

MORE THAN HALF THE WORLD'S POPULATION READS A DAILY NEWSPAPER
 
  • More than half the world's adult population read a daily newspaper: 2.5 billion in print, more than 600 million in digital form.
 
  • The newspaper industry generates more than US$200 billion of revenue annually; Circulation and advertising performance vary widely by region.
- See more at: http://printinthemix.com/Fastfacts/Show/738#sthash.8abM7crY.dpuf

Monday, June 24, 2013

Sappi Releases "Print &"

Sappi Releases "Print &" to Celebrate the Power of Print in Integrated Marketing: Sappi Fine Paper North America announced today the debut of "Print &,"Opens in a new window an insightful publication highlighting the interrelationship between print and digital media. Rather than being at odds, "Print &" highlights persuasive study results showing how print drives return on investment (ROI) when used in combination with alternative media to create effective integrated campaigns. Through independent research and compelling examples, "Print &" explores data on demographic preferences, emotional triggers, as well as shopping behaviors that show how print creates an interactive, visually intriguing and tactile experience.

Appvion Escalates Efforts on Import Duties

Appvion, Inc. today announced that it is escalating its campaign to ensure that antidumping and countervailing duties on imports of lightweight thermal paper from China and antidumping duties on imports of lightweight thermal paper from Germany are being fully enforced.
In 2008, the U.S. Department of Commerce imposed duties on imports from these countries as a result of trade remedy cases filed by Appvion (then Appleton Papers). Recent information indicates that importers are attempting to evade the duties owed by misstating the country of origin of the product, through transshipment, or by other means.

Norske Skog Temporarily Shuts News PM

Norske Skog has provisionally halted the 150,000 tonne/yr newsprint PM 2 at its Skogn mill near Trondheim in Norway, in line with its plan initially announced in March. The machine was stopped on June 23.
From this week, Norske Skog will start the summer holiday schedule at the Skogn mill and will not have enough personnel to run the site's three machines.
PM 2 will be ready for restart from the beginning of week 35, or August 26, but the timing for the startup will depend on the market development, a company spokesperson said.

NA Newsprint Shipments Up

Newsprint exports by North American mills in May spiked 19.5% from a year ago, thanks to a 39.9% surge in deliveries to non-Japan Asia - primarily India - and a 7.2% increase in volumes to Latin America, according to Pulp and Paper Products Council data.
Domestic shipments were down 8.8% from May last year and showed an average 9.8% decline for the year-to-date.
North American newspapers' demand for newsprint fell 11% last month, but demand by commercial printers was effectively flat with last year,
reducing the overall demand drop to 8.9% in May and 10.0% so far this year.

Producers Raise Prices on Coated Board

June 21, 2013: 
The leading North American producers of coated recycled paperboard (CRB) jumped the market with a new $45/ton price increase set for mid-July, on the heels of a mostly-successful increase in April-May, contacts confirmed this week.
Graphic Packaging set the hike for July 17 and RockTenn for July 19.
Also, leading uncoated recycled paperboard (URB) producer Sonoco set a $40/ton increase effective July 8 for all grades. 
June 24: 
PaperWorks Industries, Inc. today announced that effective on shipments as of July 22, 2013, it will increase prices on all MasterWorks coated recycled boxboard grades by $45 per ton.   Caraustar Industries, Inc. announced a price increase of $40 per ton on all grades of uncoated recycled paperboard products. The increase will be effective starting with shipments on July 15, 2013. The increase is in response to the continuing increase in costs, including raw materials.