Printing and supply chain giant Banta Corp. on July 26 made public a significant restructuring of its print business, reorganizing five divisions into two.
Banta’s book, publications and consumer catalog print divisions will become a single division called Banta Publishing & Catalog Solutions.
Also, the firm’s direct marketing and literature management divisions will form a new division called Banta Direct Marketing Solutions.
The two divisions share a common customer base and market focus. Together they will present direct marketers with a complete range of marketing solutions, the Menasha, WI-based company said.
As a result of the reorganization, Banta will eliminate management infrastructure and reduce general and administrative costs.
Banta said the move was the result of the ongoing evolution of the print industry. The company wants to remove significant costs from its print sector infrastructure, while at the same time become more competitive in the marketplace.
The reorganization is expected to generate annualized pre-tax savings of approximately $3 million beginning in 2007.
Further reorganizations are expected as the company looks to continue to streamline its operations and administrative functions.
Meanwhile, the company’s second-quarter revenue from continuing operations totaled $361 million compared to $366 million during the same period last year. Earnings from continuing operations were $16.1 million versus $14 million in last year’s second quarter. Diluted earnings per share were 66 cents compared to 56 cents in 2005’s second quarter.
The company’s print sector, catalog and publications divisions, direct marketing division and supply chain management sector all reported lower revenue in the second quarter compared to last year. However, the book and literature management divisions posted revenue increases.
