MENASHA, WI . . . Banta Corporation (NYSE:BN) today reported strong third quarter results, with sales increasing 22 percent and earnings per share rising 20 percent over the same period last year. Significantly improved results were recorded in both of Banta's primary growth sectors, print and supply-chain management. In addition, the company expects its print markets to remain strong into next year and its supply-chain management business should continue to benefit from the trend of technology companies outsourcing an increasing number of manufacturing and distribution functions. Diluted earnings per share reached a record 78 cents compared with last year's 65 cents. Operating earnings for 2000's third quarter totaled $36.7 million, 14 percent above the $32.3 million reported for the same periodlast year. Net earnings were $19.2 million, 10 percent above last year's $17.5 m illion. Third quarter sales were $405 million versus $332 million last year. For the nine-month period ended September 2000, diluted earnings per share increased 18 percent to $1.67, compared with $1.42 during the same period last year, before the effects of a $55.0 million pretax restructuring charge recorded during 1999's second quarter. Operating earnings reached $82.5 million compared with $74.3 million, a gain of 11 percent. Net earnings were $41.8 million versus $39.0 million in 1999. Sales for the nine months increased 15 percent to $1.1 billion compared with last year's $940.0 million. Chairman Donald D. Belcher says Banta's performance over the past four quarters has been excellent. "The momentum we've built over the past year is strong," notes Belcher. "Our growth has been consistent and significantly above the prior-year periods. We expect that solid performance to continue through the fourth quarter and into next year. "In printing, we are a leading supplier to faster-growing niche markets, particularly educational books and special-interest magazines, and our ability to provide supply-chain solutions to the world's leading technology companies continues to expand on a global basis," he says. Banta Global Turnkey, the corporation's supply-chain management business, produced rapid growth in the third quarter with both sales and earnings rising more than 60 percent over the same period last year. Third quarter sales grew to 25 percent of the corporate total, compared with last year's 18 percent. "Our major supply-chain management contract with Compaq Computer is achieving expectations, despite delays in operational ramp ups," according to Belcher. "The European supply-chain management facility serving Compaq Computer completed its ramp up near the end of the third quarter in Cork, Ireland, and our Singapore facility is now operating, with full production expected by the end of the year. We also have expanded our supply-chain outsourcing relationships with other key technology customers and are investing in future growth with a new plant in Mexico and significant facility expansions in the U.S. and Europe. We expect continued strong double-digit growth for this business segment during 2001, with full-scale Compaq activity next year and business expansions with other customers, particularly in higher-growth communication and networking products." Banta's print sector also delivered strong results for the quarter, with a 15 percent increase in sales and a 17 percent increase in operating earnings. "Our Book Group turned in another outstanding quarter, as the educational print market remained exceptionally strong and the trade market provided solid contributions," says Belcher. "Our recent acquisition in educational printing turned in good results for the quarter, providing the desired expansion of services to our educational market. Two press additions next year will provide needed capacity and additional growth opportunities in both educational and trade book printing." Growth momentum for Banta's magazine business continued in the third quarter as the Publications Group established new quarterly sales and earnings records. A solid client base, strong advertising environment and increased page counts combined to produce the outstanding results. "The special-interest magazine market remains one of our best print niches and we are committed to supporting this Group's continued growth with capacity expansions, including future acquisitions," notes Belcher. "This past quarter we announced a doubling of the size of our magazine printing plant in Ohio and started up two new presses at plants in Minnesota and Missouri. With capacity additions, technology advancements and our continuing dedication to serving the specialized needs of this market, the Group's growth outlook remains very positive." Results for Banta's catalog and direct marketing units improved significantly over last year's third quarter. "We are encouraged by our third quarter results," says Belcher. "We experienced increased print demand and a greater call for our higher technology, value-added personalization services, particularly from financial services clients. We are confident our aggressive efforts to boost productivity, lower costs and maximize customer satisfaction will create additional progress in the months ahead for consumer catalogs and direct mail." Third quarter results for Banta's healthcare unit were below expectations. Higher expenses and delivery issues related to a new international sourcing initiative, along with cost increases for paper and resin, hampered performance. More normal results are expected in 2001 as Banta Healthcare benefits from this year's operational improvements. "I am very optimistic about Banta's growth potential, both short term and long term," says Belcher. "We have leadership positions in healthy markets, competitive differentiation that drives market share growth, and a strategic focus that combines a strong cash generating print sector with a high-growth supply-chain management business."