ENGLEWOOD, Colo. (March 13, 2001) - Mail-Well, Inc. (NYSE-MWL) today
announced that the abrupt economic slowdown has impacted advertising related printing orders and will have an affect on first quarter earnings. The company predicts that earnings will range from $0.07 to $0.09 per share, rather than First Call estimates of $0.25 per share.
“In this economic environment, our businesses are reacting as we would expect. Those most closely related to advertising are most affected,” said Paul V. Reilly, President and CEO. “Our Commercial Print Segment, where results are disappointing, has been sharply affected while our Envelope, Printed Office Products and Label Segments are performing close to plan. We are taking all necessary measures to reduce operating expenses to mitigate the situation.”
Earlier this year, the company announced that it would close eleven plants and offices, replace inefficient presses and relocate some equipment to improve efficiencies. The combination of these plant closings and the company’s more recent response to the economic downturn has already resulted in a work force reduction of 5% since year-end.
Mr. Reilly also said that the company's cash flow remains strong and expects that improved working capital management will compensate for any reduction in EBITDA from the levels achieved in 2000.
“We are also well into a comprehensive 90-day strategic review of our total company operations,” Mr Reilly continued. “This review is evaluating every facet of our business, including current market strategies, capital structure and techniques for improving efficiency. The results, which will be announced in May, will clarify directions for driving sales and earnings growth and increasing shareholder value.”
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