Banta Closes Catalog Plant Despite Record Earnings

Share this content:
Banta Corp. announced the closing of its catalog production facility in St. Paul, MN, yesterday, citing weak advertising and promotional spending in the direct marketing and publishing industries despite reporting record earnings for 2002.

The plant is "one of Banta's oldest and least efficient print operations," president/CEO Stephanie A. Streeter said in a statement. Banta's catalog production operations will be consolidated at its plant in Maple Grove, MN, and other facilities.

The company said it regretted any job loss resulting from the plant closure. The closing date and number of jobs the company expects to cut were not disclosed.

Banta said it expected to incur a one-time charge of $15 million to $18 million involving the closure. The closing is expected to save $8 million to $10 million yearly starting in 2004, plus a small savings expected for the end of 2003.

Given the soft economy, Banta has been examining its operations over the past several months to find ways to improve efficiency, Streeter said. However, excluding the cost of the plant closure and other pre-tax one-time charges, Banta achieved net earnings of $60.2 million in 2002, compared with $57.5 million in 2001, 5 percent increase, the company said.

Sign up to our newsletters

Company of the Week

Since 1985, Melissa has helped thousands of companies clean, correct and complete contact data to better target and communicate with their customers. We offer a full spectrum of data quality solutions, including global address, phone, email, and name validation, identify verification - available for batch or real-time processes, in the Cloud or on-premise. Our service bureau provides dedupe, email/phone append and geographic/demographic append services for better targeting and insight. For direct mailers, Melissa offers easy-to-use address management/postal software, list hygiene services and 100s of specialty mailing lists - all with competitive pricing and excellent customer service.

Find out more here »

Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here

Relive the 2017 Marketing Hall of Femme

Click the image above