Bowne Lowers Earnings Estimates For 3Q, Will Report a Loss
Tuesday, October 23, 2001
NEW YORK, Oct. 22 -- Bowne & Co., Inc. announced that it expects earnings for the third quarter to be below its earlier estimates, due to lower than anticipated volumes in the transactional financial printing business, particularly in initial public offerings (IPO) and Mergers and Acquisitions (M&A) transactions. Robert M. Johnson, chairman and chief executive officer of Bowne, said, "The falloff in the transactional market has been well documented. As widely reported, September was the first month in 25 years with no IPO registration filings. While we were on target with prior earnings estimates through August, we could not anticipate such a dramatic drop-off in September. We are still in the process of finalizing our financial results, but anticipate third quarter diluted earnings per share to be in the range of a loss of $0.05 to $0.10.'' "As we have discussed with investors in the past, we have been engaged in an on-going review of our costs and resources in our financial printing segment. We are proceeding with our announced closing of our Chicago manufacturing operations and have begun the process of further workforce reductions. The tragic events of September 11th and the resulting economic uncertainty have impacted the financial print market by delaying much of the fourth quarter activity, which we had been anticipating with cautious optimism. In response to the continued slowdown, over the next few weeks, we will further reduce the workforce of our domestic and international printing operations as we manage our business to the lower volumes of market activity. Overall, we expect a reduction in our financial printing workforce of approximately 10%.'' Bowne's third quarter 2001 results will be reported on November 7th. At that time Bowne will provide more information about the third quarter results, as well as revised outlook for the fourth quarter and full-year 2002.