Printer Friendly

COURIER POSTS SECOND QUARTER LOSS

 COURIER POSTS SECOND QUARTER LOSS
 LOWELL, Mass., April 21 /PRNewswire/ -- Courier Corporation


(NASDAQ: CRCC) today reported results for the second quarter of fiscal 1992 ended March 28, 1992.
 The company posted a loss for the quarter of $1,997,000 or $1.15 per share, compared to net income of $85,000 or 5 cents per share for the comparable quarter of 1991. Sales for the quarter were $30.8 million; last year's second quarter sales were $31.2 million. These results are consistent with the company's announcement in late March that it would report a significant loss for the quarter.
 Company president James F. Conway III reported that international operations accounted for most of the second quarter loss. "Our European manufacturing operations were interrupted by a relocation from England to Scotland during the second half of last year, and the plant start-up has been slower and more costly than anticipated. From a virtual standing start there, we had to assemble a new workforce and ramp up production quickly in order to minimize the impact of the move on our customers. However, managing, organizing and training new employees has been a real challenge, and the performance of the new plant has not met expectations. In turn, some customers reduced their order volumes for the second quarter, requiring us to trim our Scottish workforce by 20 percent. These factors combined to have a severe impact on our quarterly earnings," he said.
 "In response, we sent a team of administrative and production specialists drawn from among Courier's most talented U.S. personnel to work with plant management in Scotland. We have recently seen significant improvement from these efforts. While we expect this improvement to continue through the third quarter, the Scottish operating will, nonetheless, have a negative impact on Courier's third quarter earnings."
 "We believe that our investment in Scotland remains strategically sound and that our continuing efforts at improvement there represent a prudent course, despite recent setbacks. A profitable overseas operation is vital to Courier's ability to meet the ever-expanding needs of our international customer base, and we remain fully committed to helping our global clients be successful by supporting them with such a resource. Meanwhile, we are gratified by their continuing patience and support," he said.
 As for Courier's domestic business, Conway said that the recession continued to impact major U.S. customers, especially publishers of educational and trade books, whose orders were below last year's levels. Sales of religious products were also down, but this decrease reflects an out-of-phase order cycle in the quarter. The shortfall in these markets was offset by continued strong growth in the technology market, due to an expanding customer base. Earnings from U.S. operations were comparable to the prior year.
 Conway noted that a number of other factors combined to depress second quarter results: "The recession continued to put pressure on our industry in a quarter when certain of our key markets are at their seasonal low points, making for particularly keen competition and increased pricing pressures, which become an unavoidable reality in this environment. In the face of these marketplace realities, we have stepped up our marketing and sales activities and are aggressively managing costs."
 "Despite the disappointment from our international operation this quarter, Courier's business remains fundamentally sound. We have improved our competitive position by reducing operating costs while still offering a broad array of innovative services, maintaining delivery reliability and providing rapid response. We are cautiously optimistic about the prospects of our U.S. business for the remainder of the year," Conway said.
 For the six months ended March 28, 1992, Courier reported a loss of $1,909,000 or $1.10 per share, compared to net income of $254,000 or 15 cents per share for the same period last year. Sales were $61.7 million for the first six months of fiscal 1992, compared to $63.7 million in the prior year.
 Courier Corporation, headquartered in Lowell, Mass., is an international producer of books, Bibles, reference texts, directories, technical manuals and software documentation. The company operates subsidiaries in Westford and Stoughton, Mass.; Philadelphia, Pa.; and Kendallville, Ind. Its international operations are located in East Kilbride, Scotland.
 COURIER CORPORATION
 Consolidated Statements of Income (Unaudited)
 (Dollars in Thousands, except per share data)
 Quarter Ended Six Months Ended
 3/28/92 3/30/91 3/28/92 3/30/91
 Net sales $30,819 $31,198 $61,707 $63,708
 Cost of sales 28,246 26,882 54,162 54,660
 Gross profit 2,573 4,316 7,545 9,048
 Selling & administrative
 expenses 4,055 3,937 7,993 7,886
 Interest expense, net 628 821 1,315 1,437
 Other income (expense) net (4) 485 93 636
 Income (loss) before tax (2,114) 43 (1,670) 361
 Provision (benefit) for
 income taxes (117) (42) 239 107
 Net income (loss) (1,997) 85 (1,909) 254
 Net income (loss)
 per share $(1.15) 5 cents $(1.10) 15 cents
 Cash dividends declared
 per share 10 cents 10 cents 20 cents 20 cents
 Weighted average shares
 outstanding 1,739,467 1,693,929 1,737,880 1,690,781
 -0- 4/21/92
 /CONTACT: James F. Conway, Jr., Chairman, or Robert P. Story, Jr., senior vice president and chief financial officer, 508-458-6351/
 (CRCC) CO: Courier Corporation ST: Massachusetts IN: PUB SU: ERN


PB-DH -- NE017 -- 0892 04/21/92 16:56 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Apr 21, 1992
Words:900
Previous Article:NORCEN ENERGY RESOURCES LTD. ANNOUNCES ESTIMATED RESULTS
Next Article:ARKANSAS BEST HOLDINGS CORP. ANNOUNCES FIRST QUARTER 1992 OPERATING RESULTS


Related Articles
COURIER SIGNALS SECOND QUARTER LOSS
COURIER CORPORATION ANTICIPATES LOSS FOR THIRD QUARTER: DIRECTORS VOTE TO WITHHOLD REGULAR QUARTERLY DIVIDEND
COURIER CORPORATION POSTS THIRD QUARTER LOSS: INTERNATIONAL OPERATIONS CONTINUE TO DRAIN EARNINGS
COURIER CORPORATION REPORTS FOURTH QUARTER AND FISCAL YEAR LOSS; COURIER INTERNATIONAL CLOSED
COURIER REPORTS SECOND QUARTER RESULTS
COURIER REPORTS THIRD QUARTER RESULTS
COURIER CAPS FISCAL 1993 TURNAROUND WITH FOURTH CONSECUTIVE PROFITABLE QUARTER
COURIER REPORTS SECOND QUARTER GAINS IN SALES AND EARNINGS
Courier Posts Third Consecutive Year of Record Growth.
Courier Corporation Reports Record Results.

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters