Printing companies ink up a successful year.

Rising cost of paper cuts into companies' profits

Los Angeles County-based printing companies had a banner year in 1994, with the top 25 printers on The List (see opposite page) collectively inking a 20 percent sales gain over the previous year to a total of $1.53 billion.

In 1993, sales for the top 25 printers in the county were $1.28 billion, up a more modest 5 percent from 1992's $1.22 billion.

But, some in the industry cautioned, pan of the 1994 increase in sales was due to the rising cost of paper - some types of which rose by as much as 30 percent last year. Thus, people in the industry said, just because sales were up doesn't mean profits improved as well.

Once again, the leader on The List of printing companies was Treasure Chest Advertising Co. Inc., the Glendora-based outfit that specializes in advertising inserts. Sales in 1994 for Treasure Chest were $807 million, up 45 percent from the previous year's $555 million.

Part of that growth was due to acquisitions, said Treasure Chest spokeswoman Roberta Cohen, with the company purchasing KTB Associates in Saugerties, N.Y., and Retail Graphics in Dallas during 1994.

That placed Treasure Chest well ahead of its nearest competition - Anderson Lithograph Co., the general commercial printing company in Los Angeles whose 1994 sales were $115 million, up 15 percent from the prior year.

Pressing issues

Also in the top five on The List were George Rice & Sons in Los Angeles, with $105 million in 1994 sales, and Color Graphics in Los Angeles, with $58 million in sales.

Moving up to the No. 5 spot was Lithographix Inc. of Los Angeles, which saw a 1994 sales increase of 83 percent over the previous year to $55 million. In 1993, Lithographix was No. 8 on The List.

Herb Zebrack, president of Lithographix, chalked up his company's good year to hard-working employees, an emphasis on customer service and the $6 million upgrade of a printing press that in turn upgraded the machine's speed from 12,000 pieces an hour to 40,000.

"We've now been classified as a big printer," Zebrack said, "where before we were considered a good, medium-sized printer."

He added that printers in the 1990s have had to rely more heavily on customer service than in previous years.

"Our clients have been saddled with less people and less of a budget and are asked to do more than ever before," he said. "We become their partner."

Fresh faces

Newcomers to The List this year include Southern California Graphic Corp. in Culver City, which shot into the No. 18 spot with $15.7 million in sales.

Also new to The List were No. 22 Andrews Printing Co. Inc. in Lakewood, No. 24 Continental Colorcraft Co. in Monterey Park, and No. 25 Chromatic Inc. Lithographers in Glendale.

Andrews Printing CEO Ronald Lawrence said an aggressive sales effort combined with new machinery made for a very good 1994 at his firm. But that doesn't mean the printing industry as a whole has come out of the recession-led doldrums.

"I don't think that the business climate is essentially getting any better," Lawrence said, adding that the industry's overall sales gain may in many cases simply reflect increases in paper prices that were passed on to the customers.

Among those dropping off The List were Wolfer Printing Co. of the City of Commerce, Anderson Printing/Andresen Color, Western Financial Printing and Westland Graphics, all of which declined to respond to this year's survey.