PW: Donnelley, Banta, Post Gains in Book Units

Donnelley reported that book-printing sales rose 8% last year, to $768 million, or roughly 16% of the giant printer's total revenues. In 1996, book printing accounted for 14% of sales. Donnelley attributed the improvement to strong demand for textbooks. Book sales at Banta increased 16% in 1997, to $276.5 million, and represented 23% of overall revenue, compared to 22% in 1996. The company said the gain was due to strong demand in Banta's main book area: the printing of paperbacks for both the trade and educational markets.

After a number of years of diversification efforts, both Donnelley and Banta are in the midst of focusing on the core areas, which include print as well as digital publishing businesses. To that end, Banta took a one-time charge of $13.5 million last year related to its restructuring efforts, which included the sale or closing of non-core assets. Donnelley's results included a $71-million restructuring charge, plus a $60 million provision to adjust the carrying costs of discontinued operations. Donnelley's most significant action in refocusing its business was the reclassification of Stream International Holdings -- a major contributor to revenues, but one that generated operating losses -- as a discontinued operation.

Donnelley and Banta both sounded bullish on the future of their book-printing business, noting that they are prepared to meet the needs of a changing marketplace by adopting such practices as on-demand printing and custom publishing for smaller print runs. Both companies also said that part of their growth strategy for the future included acquisitions.