Courier Corp. to Close Book-mart Press
Book manufacturer and specialty publisher Courier Corp. will close Book-mart Press Inc., a North Bergen, N.J.-based short-run manufacturing subsidiary, and consolidate its one-color printing operations into other Courier facilities. Book-mart Press, which was acquired by Courier in 1997, has 72 employees and approximately $7 million in annual sales.
Citing a weak economy and a changing competitive environment, the North Chelmsford, Mass.-based Courier said that Book-mart's capabilities "had become increasingly redundant with those of other Courier plants." The company estimates that the plant closing will be completed within the next 60 days, and that severance expenses and other related costs will total approximately $2 million over the next two quarters.
"We deeply regret having to make this announcement at such a troubled time in our national economy," says James F. Conway III, Courier chairman and CEO. "Yet, it is that very circumstance that has made this action imperative. We appreciate the loyalty and professionalism of Book-mart's employees through the years, and we are determined to make every effort to help them through this inevitably painful transition. At the same time, I want to reassure Book-mart's customers that their work will remain in good hands at our other manufacturing plants, and our commitment to outstanding service is undiminished."
First-Quarter Revenues Decline
Courier Corp. also announced results for the first quarter of its 2009 fiscal year. A modest rise in book manufacturing sales was offset by across-the-board declines in the company’s specialty publishing segment, reflecting reduced spending by both retailers and consumers as the U.S. economy continued to slow, according to the company.
Courier's revenues for the quarter were $59.6 million, down five percent from last year’s first-quarter sales of $62.9 million. Its book manufacturing segment had first-quarter sales of $50.9 million, a two-percent increase from $49.7 million in last year's first quarter. The company's specialty publishing segment, which includes Dover Publications, Creative Homeowner, and the Research & Education Association, registered first-quarter revenues of $11.5 million, a 25-percent decrease from $15.3 million in last year's first quarter.