Courier Sees Improvement

Courier Corp. reported that its book manufacturing segment "turned the corner" in the third quarter ended June 29, with sales rising 2%, to $44.7 million. The sales gain followed five quarters of declining revenues, and sales for the segment were still down 8%, to $133.6 million, for the nine-month period.

Growth in the third quarter was led by sales to the religious market, which had a 22% increase. Sales to the education market, after falling 13% in the first half of the fiscal year, increased 2% in the quarter, a sign that inventory pressures have begun to abate at educational publishers, Courier said. Sales to the trade market, however, continued to be weak, declining 16% in the quarter. Courier executives took some hope as the decline in the quarter was less than the 22% drop experienced in the first half of fiscal 2002. While they noted that declines may lessen again in the fourth quarter, they do not expect to see "positive growth" in the trade market for the remainder of the fiscal year.

Sales at Courier's publishing subsidiary, Dover Publications, increased 6% in the quarter, to $8.5 million, and were up 11% for the nine months, to $25.9 million. The company said international sales have continued to boost total revenues, with sales to foreign markets up 9% in the nine-month period. During the third quarter, Dover began releasing the first math and science titles in its Phoenix series. The new line offers out-of-print books that Dover is republishing in response to requests received through its Web site.

For the entire company, sales increased 2%, to $51.8 million in the quarter, with net income up 37%, to $4.1 million. Earnings were up 20% in the nine months, to $9.6 million, even with a 6% revenue drop to $146 million. Despite improvements in the third quarter, Courier expects full-year sales between $202 million and $206 million, down from original estimates of $212 million.