Printer Friendly


 ATLANTA, Oct. 22 /PRNewswire/ -- American Business Products, Inc. (NYSE: ABP) today reported record sales for both the third quarter and the first nine months of the year, while earnings were lower as the result of several factors including the sluggish economy and strong pricing competition.
 For the three months ended Sept. 30, sales were a third quarter record at $119.5 million, up 4.5 percent compared with $114.4 million for the third quarter last year. Net income was $3.6 million or $.34 per share compared with $4.3 million or $.40 per share last year.
 For the nine months, sales reached $352.6 million, a record for a nine-month period, up 2 percent compared with $346.4 million for the period last year. Net income for the nine months was $11.9 million or $1.11 per share compared with $14.9 million or $1.40 per share last year, before the cumulative effect of changes in accounting principles. After the effect of the changes, net income last year was $2.5 million or $.23 per share. The 1992 income also included $2.9 million or $.27 per share non-recurring gain from sale of property.
 "As stated in our second quarter release July 21, we anticipated difficult third quarter comparisons unless the economy showed major improvement, which it did not," said Thomas R. Carmody, president and chief executive officer of ABP. "Other factors adversely affecting results included strong pricing competition for our specialty companies, combined with the instability of our paper costs, and start-up costs associated with the installation of new, advanced production equipment.
 "A positive step was the completion of the acquisition of Discount Labels late in the quarter. We expect to benefit from this acquisition in the fourth quarter and to also realize some contribution to earnings from our acquisition of International Envelope Company, which is scheduled to be completed within the next week."
 Discount Labels, a specialty label producer based in New Albany, Ind., had sales of $22.1 million for 1992 and serves many of the nation's quick-print shops. International Envelope Company, based in Exton, Pa., is a manufacturer of Tyvek and specialty paper envelopes with sales of $42 million in 1992.
 American Business Products, Inc., which achieved its 54th consecutive year of record sales ($463.5 million) in 1992, is a leading supplier of business supplies including forms for computers and other electronic equipment; envelopes and specialty mailers; book printing, binding and distribution; specialty extrusion coating and laminating; and other business supplies, with 40 production facilities in the continental United States and Hawaii. Operating companies are: Curtis 1000 Inc., Vanier Business Forms & Services, BookCrafters USA, Inc., American Fiber-Velope Mfg. Co., Jen-Coat, Inc. and Discount Labels. ABP also has a joint venture, Curtis 1000 Europe GmbH in Neuwied, Germany.
 3 mos. ended Sept. 30 1993 1992
 Net sales $119,516,000 $114,371,000
 Income before income taxes 5,674,000 6,484,000
 Provision for income taxes 2,088,000 2,205,000
 Net income 3,586,000 4,279,000
 Earnings per common share .34 .40
 Avg. number of common shares outst. 10,679,167 10,694,263
 9 mos. ended Sept. 30 1993 1992
 Net sales $352,602,000 $346,371,000
 Operating income 18,408,000 18,826,000
 Sale of land --- 4,585,000(a)
 Income before income taxes and
 cumulative effect of changes
 in accounting principles 18,408,000 23,411,000
 Provision for income taxes 6,514,000 8,465,000
 Income before cumulative effect of
 changes in accounting principles 11,894,000 14,946,000
 Cumulative effect of changes in
 accounting principles --- (12,449,000)
 Net income (loss) 11,894,000 2,497,000
 Average number of common
 shares outstanding 10,682,712 10,693,088
 Per common share:
 Income before cumulative effect of
 changes in accounting principles 1.11 1.40(a)
 Net income (loss) 1.11 .23
 (a) Earnings per share from sale of land was $.27.
 -0- 10/22/93
 /CONTACT: T.R. Carmody of American Business Products, 404-953-8300/

CO: American Business Products, Inc. ST: Georgia IN: SU: ERN

CF-BN -- AT011 -- 5799 10/22/93 14:20 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Oct 22, 1993

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