Settlement, Restructuring Cost Banta $10.2M

Share this content:
A legal settlement connected to a terminated acquisition as well as restructuring costs cut into Banta Corp.'s earnings in the second quarter of 2003 despite increased sales, the company said yesterday.


Banta's sales were up to $337 million in the quarter, compared with $332 million in the same period last year. But net earnings for the quarter were $7.3 million versus $13.4 million in 2002.


Charges affecting Banta's second-quarter performance included a realignment of its consumer catalog and supply-chain management operations and the settlement of a lawsuit stemming from its terminated acquisition of Mentor Media Ltd., the company said.


The settlement, announced July 26, resulted in a one-time charge of $4.6 million. That charge, combined with the restructuring, cost Banta $10.6 million pretax and had an after-tax impact of $6.2 million, the company said.


Banta, Menasha, WI, said it encountered delays in obtaining environmental permits as part of the modernization of its consumer catalog platform. Transfer of existing equipment to facilities in St. Paul, MN, and Minneapolis were delayed, constraining Banta's print capacity, and the company said it expected that its third-quarter 2003 results would be hurt.


close

Next Article in Multichannel Marketing

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