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PIA/GATF Ratios Show Printing Industry Profits Increasing

Monday, November 20, 2006

Press release from the issuing company

Pittsburgh, PA, November 17, 2006—Printing industry profits increased slightly over the past year according to the just-completed 2006 PIA/GATF Ratios Survey. They are still not back to the level they were in the mid to late ’90s but they are on the rise. The average printer’s before-tax profit on sales was 2.7 percent over this past year. While this was an increase compared to 2.5 percent for 2005, it is still below the 3.0–3.4 percent range experienced from 1995–2001. Profit leaders, printers in the top 25 percent of profitability, saw profits increase to 10.3 percent as compared to 9.4 percent in 2005. Profit as a percentage of sales for profit leaders has reached the same levels as the mid to late ’90s. In 2006 materials accounted for the largest single cost category for the typical U.S. printer, approximately 35.1 percent of sales. Paper alone consumed more than one-in-five sales dollars last year. Other major costs incurred by printers last year included factory payroll (25.8 percent of sales), factory expenses (16.9 percent of sales), administrative expenses (9.5 percent of sales), and selling expenses (9.1 percent of sales). Total materials expenses declined from 35.3 percent of sales in 2005 to 35.1 percent in 2006. Printers spent slightly less on factory payroll in 2006 (25.81 percent of sales in 2005 vs. 25.75 percent in 2006). Selling expenses in 2006 remained almost identical to selling expenses in 2005, while administrative expenses decreased slightly from 9.79 percent of sales in 2005 vs. 9.46 percent in 2006. Sales per employee for all printers rose slightly in 2006 to $136,469 (up from $131,601 in 2005). For profit leaders, sales per employee also increased from $137,990 in 2005 to $146,909 in 2006. Additionally, sales per factory employee increased among all printers by more than $10,000 from 2005 figures and averaged $184,538 in 2006. Sales per factory employee for profit leaders increased by a slightly wider margin, growing from $177,024 in 2005 to $187,893 in 2006. Printers use the Ratios reports to evaluate their performance against industry profit leaders. Specific reports are available for various firm profiles by size of firm, printing process, and print market segments. To view a sample Ratios Volume and learn more about the 16 different volumes visit www.ratios-sample.com. The final page of this sample report describes what is included in each volume. To order your Ratios Volume visit www.gain.net, Search: PIA/GATF Ratios or call (866) 855-4283. For more information contact Ed Gleeson at 800-910-4283, ext. 756 or egleeson@piagatf.org.




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