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Coldset Web Printers Ratios Survey Reveals Lagging Profits

Press release from the issuing company

ALEXANDRIA, VIRGINIA (August 10, 2001) – Coldset web printers’ profits declined .31 percent between 1999 and 2000, from 5.88 to 5.37 percent, according to figures in the Printing Industries of America (PIA), Incorporated, annual Ratios survey. Profits as a percent of value-added revenues grew from 9.46 percent in 1999 to 9.86 percent 2000. Profit leaders—printers in the top 25 percent of profitability—averaged 15.04 percent before-tax profit on sales, representing a decrease from last year’s reported figure of 15.85 percent. Despite the decline in profit, coldset web printers still outperformed the printing industry as a whole. "The coldset printing sector has enjoyed relatively healthy profit rates over the past few years," said Dr. Ron Davis, PIA chief economist. "The recent economic slowdown will probably have an adverse impact on coldset web printers’ financials in next year’s report." In 2000, the vast majority of printers’ revenues were devoted to three major cost areas—materials (43.00 percent), with paper alone accounting for 31.62 percent of sales. Factory payroll (24.98 percent) and factory expenses (13.71 percent) were other significant cost items confronting heatset web printers. Sales per factory employee increased from an average of $133,616 in 1999, to an average of $145,277 in 2000, which is an increase of 8.7 percent. Sales per all employees also increased by 7.8 percent to an average of $124,367 last year. The coldset web printing sector is dominated by newspaper printing establishments. According to PIA’s 2001 Print Market Atlas: The Complete Reference Guide to Current Market Trends, there are more than 5,000 such establishments in the United States. Total shipments in this sector amounted to more than $31 billion. PIA Ratios is the printing industry’s most accurate and valuable tool for strategic management, investment, productivity, and profitability. Owners, managers, and analysts use the reports to benchmark individual company operations against industry norms and profit leaders. The data collected is based on financial surveys of printers in the United States and Canada. This year, more than 800 printers participated in the survey. Sponsoring the 80th edition of PIA Ratios were the following companies: Heidelberg, Kennesaw, Georgia; Printer Alliance, Horsham, Pennsylvania; and printCafe, Pittsburgh, Pennsylvania. Published in 18 volumes, the reports are available by size of printer, process, products, and geographic area. The cost for Ratios to PIA and Graphic Arts Technical Foundation (GATF) members is $99 for each volume, or $750 for the full set. For non-members the cost is $199 per volume and $1,500 for the full set. Prices do not include shipping and handling. To order the 2001 PIA Ratios, call the PIA/GATF Bookstore toll free at 1-800/662-3916, or order online through the GAIN Bookstore. The volumes available include the following: Volume 1: Management Guide to PIA Ratios (Item#00FM01001) Volume 2: All Printers by Sales Volume & Geographic Areas (Item#00FM01002) Volume 3: All Printers by Product Specialty (Item#00FM01003) Volume 4: Sheeted Printers by Size & Geographic Area (Item#00FM01004) Volume 5: Web Offset Printers, Heatset (Item#00FM01005) Volume 6: Web Offset Printers, Non-Heatset (Item#00FM01006) Volume 7: Combination Offset-Sheetfed Web Printers (Item#00FM01007) Volume 8: Book Manufacturers’ Ratios (Item#00FM01008) Volume 9: Printers With Sales Over $15,000,000 (Item#00FM01009) Volume 10: Prepress Specialists' Ratios (Item#00FM01010) Volume 11: Binders’ Ratios (Item#00FM01011) Volume 12: Printers With Sales Under $2,000,000 (Item#00FM01012) Volume 13: Quick Printers’ Ratios (Item#00FM01013) Volume 14: Business Forms Ratios (Item#00FM01014) Volume 15: Label Printers’ Ratios (Item#00FM01015) Volume 16: Digital Printers’ Ratios (Item#00FM01016) Volume 17: Commercial and Advertising (Item#00FM01017) Volume 18: In Plants (Item#00FM01018)