Commercial printer Mail-Well Inc. said yesterday that its first-quarter earnings will be lower than expected because the slowing U.S. economy has hurt orders for advertising materials and catalogs.
The Englewood, CO, company predicted that earnings will range from 7 cents to 9 cents a share, below the expected 25 cents and below the 31 cents reported for first quarter 2000.
"Our commercial print segment, where results are disappointing, has been sharply affected, while our envelope, printed office products and label segments are performing close to plan," president/CEO Paul V. Reilly said. "We are taking all necessary measures to reduce operating expenses to mitigate the situation."
Earlier this year, the company said it would close 12 of its 140 plants and offices, replace inefficient presses and move some equipment to improve efficiencies.
The combination of these closings and other actions spurred by the economic downturn has led to a work force reduction of 5 percent since the end of last year. The company has about 15,000 employees worldwide.
Reilly also said the company is in the middle of a 90-day review of its businesses and hopes to announce results in May.