Consolidated Graphics: Pricing Aggressively to Retain Market Share
Press release from the issuing company
HOUSTON -March 19, 2001 - Consolidated Graphics, Inc. (NYSE:CGX - news) announced today that it has implemented initiatives designed to reduce costs, improve operating efficiencies and enhance customer satisfaction. As previously reported, these initiatives were developed to counter the effects of ongoing weak demand caused by softness in the general economy and print markets in particular. The Company anticipates that it will incur a special fourth quarter charge as a result of these actions in the range of $4 to 5 million after tax, or approximately $.31 to $.38 per diluted share.
Actions have been completed to combine the sales and printing operations at three smaller under-performing locations into three larger nearby facilities. A new strategic alliance has been negotiated for a fourth location.
``Combining sales and printing operations in three of our markets enables us to serve customers much more efficiently,'' stated Charles F. White, President and Chief Operating Officer. ``As the combined businesses were in close proximity, we now can provide the local service and feel that our customers want while offering them much broader printing capabilities than before. Additionally, as a result of this consolidation, the Company will benefit from increased manufacturing and cost efficiencies.''
``A strategic alliance at a fourth location will enable us to focus more closely on our core competency-high quality commercial printing,'' continued Mr. White. ``At the same time, our alliance partner will gain broader access to an attractive regional financial printing marketplace. This alliance will represent a win-win situation for both parties.''
``Today, we are still aggressively pricing business to retain market share,'' commented Joe R. Davis, Chairman and Chief Executive Officer. ``However, these savings initiatives should relieve some of the margin pressure we are experiencing. Coupled with strategies already in place to drive national account sales and marketing of e-commerce products and services, these actions should enhance our revenue base and lead to profitable growth.''
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