PIA 2001 Ratios Reveals Steady Printer Profit Margins.
"The printing industry is very sensitive to the pace of the general economy and advertising spending," said Dr. Ronnie Davis, PIA's chief economist. "The slowdown toward the end of the year in 2000 was just enough to cause the profit dip. The pace of U.S. economic growth fell to its lowest level since 1993 during the last quarter of 2000 and first quarter of 2001.
"Print markets reacted by registering their slowest growth pace since the second quarter of 1991," Dr. Davis continued. "The good news is that profit leaders' financial performance held up very well with profit on sales rates remaining above 10 percent for the third year in a row. This statistic demonstrates that opportunities still exist in the printing industry for well managed printers to achieve enviable returns, even in difficult times.
"Overall, participating printers spent 25.4 percent of their sales on factory payroll and 36.3 percent on materials," Dr. Davis added.
Printing and publishing is the leading U.S. manufacturing industry in terms of establishments, with more than 47,000. It ranks fourth in the number of employees and seventh in terms of shipments.
Approximately 900 printers, prepress companies and trade binders participated in the survey. Information on a value added and sales basis is provided. on detailed income and expense line items, balance sheet data, and various other ratios for all firms and for profit leaders, which are firms in the top 25 percent of profitability.
Printers participating in the survey averaged 3.07 percent before-tax profit margin of sales compared to the previous year's mark of 3.23 percent. That level marks the second year in a row that overall industry profit rates declined after rising in 1997, 1998 and 1999. The industry leaders reported a 10.5 percent before-tax profit in sales.
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|Date:||Sep 1, 2001|
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