Moore Reports Strong Q1 Results: Earnings More Than Double
Press release from the issuing company
MISSISSAUGA, ONTARIO & STAMFORD, Conn.--April 28, 2003-- Moore Corporation Limited today announced improved results for the first quarter ended March 31, 2003.
For the first quarter of 2003 the Company reported GAAP (Canadian Generally Accepted Accounting Principles) net earnings of $29.2 million, or $0.26 per share, versus a GAAP net earnings of $12.5 million, or $0.11 per share, for the same period in 2002.
The Company's first quarter 2003 income from operations was $35.9 million versus $21.9 million in 2002. This improvement is principally due to improved operating results across all business segments as cost savings continue to result from prior restructuring activities and overall focus on financial discipline.
Net sales for the first quarter were $511.1 million compared to $529.5 million in 2002. The decrease primarily results from sales declines in the U.S. and Canadian Forms and Labels business and domestic direct mail operations, as customers deferred spending decisions as a result of current macroeconomic and geopolitical conditions, as well as the Company's decision to exit unprofitable business.
Cost of sales decreased $15.6 million to $345.4 million or 67.6% of consolidated net sales for the first quarter of 2003, compared with 68.2% for the first quarter of 2002. This decrease is due to benefits achieved through production efficiencies and manufacturing improvements and reduction of vendor costs as a result of partnering with suppliers.
Selling, general and administrative costs decreased $15.8 million to $108.6 million or 21.2% of consolidated net sales for first the three months of 2003, compared to $124.4 million or 23.5% in 2002. The improvements are attributable to the Company's continued focus on containment of discretionary spending.
Included in investment and other income for the three months ended March 31, 2003, are net gains on disposition of certain properties and equipment of $1.2 million.
Net interest expense increased by $3.9 million to $6.5 million for the three months ended March 31, 2003 compared to 2002, primarily related to $3.2 million of pre-acquisition related interest expense associated with the pending Wallace acquisition.
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