Business

Hahnemühle FineArt GmbH celebrated its 425 anniversary this year, making it one of the world's oldest continuously trading paper mill. Throughout its history, Hahnemühle has been uniquely sensitive to environmental issues in an industry that is notorious for its exploitation of the natural world. Today Hahnemühle continues to lead with its sustainable production processes.

"The green rooster, the brother of the Hahnemühle red rooster, was created to show that we care about the environment. Caring means offering environmentally-sound products, use of green power production and the sponsorship of environmental initiatives. In doing so, last year we saved 3000 tons of carbon dioxide, introduced bamboo fiber and sugar cane waste- based papers and donated more than $100,000 to environmental initiatives," said Joerg Adomat, Hahnemühle CEO.

The main resources necessary for the product of paper are water, pulp and a tremendous amount of electrical energy. Hahnemühle has addressed all of these from a product quality and sustainability perspective:

Water: The Hahnemühle paper mill was originally established on the banks of the pure, spring-fed Ilme river near the town of Dassel in the beautiful Solling region of Lower Saxony, Germany. This essential in the manufacture of premium quality fine art paper. Today this region has been designated as a Nature Protection Area by a European Flora Fauna Habitat directive. As a resident of this beautiful area, Hahnemühle has adapted sustainable fresh water and contaminant-free sewage recycling programs that exceed even the most stringent FFH directives. Now, 425 years later, the water of the Ilme is still classified as "drinking quality".

Pulp: The Hahnemühle product portfolio encompasses more than 500 different types of fine art, filter, and technical papers, many of which are used in precision industrial and medical applications that require the highest degree of purity. Since many of these applications rule out the use of recycled paper fibers, the importance of using sustainable forest resources becomes paramount to the company's green initiatives.

The company uses pulp from 20 different deciduous and conifer tree species worldwide and insists that its suppliers be certified for sustainable forestry practices that meet or exceed the equivalent of Forest Stewardship Council directives.

In addition to wood pulp, Hahnemühle also uses six different types of cotton linters and rags made from the super-soft, non-aging fibers of totally renewable cotton plant seed vessels.

In recent years Hahnemühle has developed two new "green" papers that have been added to the Digital FineArt Collection. The first was Bamboo 290gsm made from the fast growing fibers of the bamboo plant. The latest is Sugar Cane 300gsm, 75 percent of which is made from bagasse fibers, a by-product of sugar cane processing that would otherwise be burned. Cotton fibers gleaned from recycling our own paper waste make up the remaining 25 percent.

Electricity: The production of paper is an energy-intensive process; most of which is electrical. In January of 2009, Hahnemühle switched to one of Europe's most eco-friendly electrical energy providers called LichtBlick. The power provided by this company is generated entirely from easily sustainable power sources. No atomic, coal, gas or petroleum fuels are used. This will allow us to eliminate approximately 3,000 tons of CO2 emissions annually, a figure that roughly equals Hahnemühle's total paper production for a year.

Recycling: Whenever possible, Hahnemühle processes its own paper trimming waste and returns it directly into the production cycle. The excess waste trimmings that Hahnemühle cannot use are accumulated and forwarded to other fabricators, effectively eliminating virtually all its mill waste. Finally, all Hahnemühle packaging is made from fully recyclable materials.

Eastman Kodak Company has reported third-quarter 2009 results that reflect improved operating performance in a number of businesses, contributing to significant year-over-year improvement in cash performance including positive cash generation before restructuring payments.

The company’s third-quarter results also demonstrate the success of continued focused investments that Kodak is making in new products and core growth businesses, especially consumer and commercial inkjet. Cost containment and more tightly focused spending on research and development also positively contributed to the company’s third-quarter results. Consistent with its seasonal trend, the company expects cash and earnings performance to improve significantly in the fourth quarter of the year.

The company’s ability to achieve significant improvement in fourth-quarter results is predicated upon a modest improvement in the market for its consumer and commercial products, the introduction of new, higher-margin digital cameras and devices, stronger demand for its Prepress products, and the benefits from a number of intellectual property transactions executed in a manner that maximize shareholder value.

“On a sequential basis, the positive trends are clear. Our sales are stabilizing and some businesses are showing real signs of growth in the fourth quarter. That, combined with operational improvements in several of our key product lines, increases our optimism for significant improvement in the fourth quarter, our largest quarter of the year,” said Antonio M. Perez, Chairman and Chief Executive Officer, Eastman Kodak Company. “We also continue to gain significant traction with our new consumer and commercial inkjet businesses, and the productivity improvements that we’ve implemented thus far are helping to drive improved cash performance. We believe all of these factors are sustainable and they give me increased confidence that we are on track for a much improved fourth-quarter performance and achievement of our full-year earnings and cash targets.

“Our consumer inkjet hardware and ink products enjoyed another quarter of revenue growth that exceeded 100 percent, earning us a larger share of the market, and commercial inkjet customer commitments for our PROSPER Press Platform continue to grow rapidly in anticipation of delivery beginning in early 2010. While consumer demand and commercial credit markets remain constrained for the time being, we are well positioned to deliver sustained profitability as the economy improves.”    

For the third quarter of 2009:

* Sales worldwide totaled $1.781 billion, a decrease of 26% from $2.405 billion in the third quarter of 2008, including 2% of unfavorable foreign exchange impact. Revenue from digital businesses totaled $1.209 billion, a 26% decline from $1.641 billion in the prior-year quarter, primarily as a result of the global recession and continued restrictions in the credit markets that are dampening commercial printing purchases. Revenue from the company’s traditional business decreased 25% to $572 million, in line with the industry decline.
* The company’s third-quarter loss from continuing operations, before interest expense, other income (charges), net, and income taxes was $81 million, compared with earnings on the same basis of $147 million in the year-ago quarter.

On the basis of U.S. generally accepted accounting principles (GAAP), the company reported a third-quarter loss from continuing operations of $111 million, or $0.41 per share, compared with earnings on the same basis of $101 million, or $0.35 per share, in the year-ago period. Items of net expense that impacted comparability in the third quarter of 2009 totaled $48 million after tax, or $0.18 per share, primarily related to restructuring charges, asset sales, and tax related items. Items of net benefit that impacted comparability in the third quarter of 2008 totaled $40 million after tax, or $0.13 per share, due primarily to certain changes to the company’s post-employment benefits, partially offset by restructuring and rationalization costs. (Please refer to the attached Items of Comparability table for more information.)

Other third-quarter 2009 details:

* Gross Profit was 20.3% of sales, a decline from 27.5% in the year-ago period. This decline in margin was driven by lower intellectual property licensing royalties and unfavorable foreign exchange, partially offset by continued productivity improvements.
* Selling, General and Administrative (SG&A) expenses, on a GAAP basis, were $318 million in the third quarter, down 14%, or $51 million, from $369 million in the year-ago quarter, as a result of company-wide efficiency gains. Excluding a non-cash benefit from a change in the company’s post-employment benefits in the prior year quarter, the company reduced SG&A expenses, relative to the prior year quarter, by $78 million, or 20%.
* Research and Development expenses, on a GAAP basis, were $81 million in the third quarter, down 15%, or $14 million, from $95 million in the year-ago quarter, driven by a focus on investments in core growth businesses. Excluding a non-cash benefit in the prior year quarter, the company reduced R&D expenses, relative to the prior year quarter, by $33 million, or 29%.
* Third-quarter 2009 cash generation, before restructuring payments, was $29 million, compared with cash usage on the same basis of $78 million in the year-ago quarter. This corresponds to net cash used in continuing operations from operating activities on a GAAP basis of $16 million in the third quarter, compared with a net cash usage of $47 million in the third quarter of 2008. As was the case in 2008, the company expects to generate the majority of its cash flow in the fourth quarter of the year, consistent with its historic seasonal pattern.
* Kodak held $1.147 billion in cash and cash equivalents as of September 30, 2009, up from $1.132 billion on June 30. This excludes $575 million of restricted cash that the company deposited in a cash collateral account to be used to fund the previously announced repurchase of Convertible Senior Notes due 2033.
* The company’s debt level stood at $1.748 billion as of September 30, 2009, and includes $575 million in Convertible Senior Notes due 2033, for which the company completed a tender offer on October 19, 2009. As of the tender offer expiration date, approximately 98% of the outstanding 2033 Notes were tendered, representing an aggregate principal amount of approximately $563 million. The company’s debt balance as of September 30, 2009 would have been $1.185 billion if the tender offer for the 2033 Notes had been completed at that date.

Segment sales and earnings from continuing operations before interest, taxes, and other income and charges (segment earnings from operations), are as follows:

* Consumer Digital Imaging Group third-quarter sales were $535 million, a 35% decline from the prior-year quarter, including a decrease in intellectual property royalties. Third-quarter loss from operations for the segment was $89 million, compared with a profit of $24 million in the year-ago quarter. The year-over-year variance was driven by lower intellectual property licensing royalties of $157 million. Excluding the impact of intellectual property royalties, segment earnings improved. This was driven by improved profitability in consumer inkjet systems, including a 128% revenue increase in consumer inkjet printer hardware and ink and lower costs as a result of the company’s move to a more efficient product platform; improved operating performance in Digital Capture & Devices; and reduced SG&A and R&D expenses across the segment.
* Graphic Communications Group third-quarter 2009 sales were $674 million, an 18% decline from the third quarter of 2008. This revenue decrease was primarily driven by a market-related decline of 16% in Prepress Solutions as well as associated declines in workflow. Third-quarter earnings from operations for the segment totaled $10 million, compared with earnings of $22 million in the year-ago quarter. This earnings decline was primarily driven by lower volume, which resulted in unfavorable factory absorption and negative price/mix across several product lines, along with a negative impact from foreign exchange, partially offset by cost reduction efforts across all product lines and significant operational improvements in Electrophotographic Printing Solutions.
* Film, Photofinishing and Entertainment Group third-quarter sales were $572 million, a 25% decline from the year-ago quarter. Third-quarter earnings from operations for the segment were $47 million, compared with earnings of $77 million in the year-ago period. The decrease in earnings was driven by industry-related declines in volumes, negative price/mix, and unfavorable foreign exchange, partially offset by significant operational improvements in Traditional Photofinishing, cost reductions across the segment, and improvement in raw material costs.

2009 Outlook

Kodak today provided an updated outlook regarding its targets for 2009 performance, recognizing the ongoing uncertainty created by the global economic environment.

* For the full year, Kodak now expects its total revenue decline rate to be at the high end of the previously forecasted range of 12% to 18%, due, in part, to results to date and to the company’s increased focus on cash and earnings.
* Kodak is targeting 2009 segment earnings that will be within the previously communicated range of $0 to $200 million. Correspondingly, the company previously forecasted 2009 GAAP loss from continuing operations of $200 million to $400 million, and continues to forecast that GAAP results will be at the low end of that range, reflecting its latest assessment of restructuring charges, interest expense, and interest income.
* For full-year 2009, the company reiterates its goal to achieve positive cash generation before restructuring payments. This corresponds to a 2009 goal of net cash used in continuing operations from operating activities on a GAAP basis of not more than $250 million.

Electronics For Imaging, Inc., a world leader in customer-focused digital printing innovation, has announced its results for the third quarter of 2009. For the quarter ended September 30, 2009, the Company reported revenues of $100.9 million, compared to third quarter 2008 revenue of $144.7 million.

GAAP net loss was $(12.2) million or $(0.25) per diluted share in the third quarter of 2009, compared to a GAAP net loss of $(3.6) million or $(0.07) per diluted share for the same period in 2008.

GAAP net income was $1.2 million or $0.02 per diluted share for the nine months ended September 30, 2009, compared to a GAAP net loss of $(8.9) million or $(0.17) per diluted share for the same period in 2008.

Non-GAAP net loss was $(2.6) million or $(0.05) per diluted share in the third quarter of 2009, compared to non-GAAP net income of $10.4 million or $0.20 per diluted share for the same period in 2008.

Non-GAAP net loss was $(13.1) million or $(0.26) per diluted share for the nine months ended September 30, 2009, compared to non-GAAP net income of $34.5 million or $0.61 per diluted share for the same period in 2008.

"We are pleased with the sequential revenue increases in all our lines of business, led by 22% growth in our inkjet business driven by several new inkjet product introductions," said Guy Gecht, CEO of EFI. "We will continue to bring industry-leading innovation to the market and expect our positive momentum to continue which combined with strict cost controls should result in our return to profitability in the current quarter."

Separately, the Company announced today that its Board of Directors has approved the use of the balance, in the amount of $70 million, of its previously authorized $100 million share repurchase program.

Electronics For Imaging, Inc., a world leader in customer-focused digital printing innovation, today announced that its Board of Directors (the "Board") has approved the repurchase of up to $70 million worth of shares of its common stock through the use of a "modified Dutch auction" tender offer. This approval utilizes the balance of the previously authorized $100 million share repurchase program. EFI currently expects that it will commence the tender offer during the fourth quarter of 2009, at which time it will announce, among other things, the price range in which it will offer to purchase shares.

The tender offer will be financed from EFI's existing cash reserves. The funding of the $100 million share repurchase authorization represents the approximate after tax cash proceeds received from the sale of EFI's excess real estate holdings earlier this year.

"The decision by the Board and Management to immediately deploy the remaining balance of our $100 million repurchase program through a tender offer completes our goal of returning the cash generated from our real estate sale to our stockholders," said Guy Gecht, CEO of EFI. "We believe repurchasing our shares combined with bringing new innovative products to market will create value for our stockholders."

The tender offer announced in this press release has not yet commenced. This press release is for informational purposes only, and is not an offer to purchase or the solicitation of an offer to sell any shares of EFI common stock. The tender offer, if commenced, will be made solely by and subject to the terms and conditions set forth in the tender offer documents, including the Offer to Purchase and the Letter of Transmittal, that will be distributed to holders of EFI's common stock and filed with the Securities and Exchange Commission ("SEC"). Before any decision is made with respect to the tender offer, holders of EFI's common stock are urged to read the Schedule TO, including the Offer to Purchase, the Letter of Transmittal and other related materials when they become available and any other documents filed with the SEC because they will contain important information about the tender offer.

Holders of common stock will be able to obtain these documents as they become available free of charge at the SEC's website at www.sec.gov, or at the SEC's public reference room located at 100 F Street, N.E., Washington, DC 20549. In addition, holders of common stock may also request copies of the Schedule TO, the Offer to Purchase, the Letter of Transmittal and other related materials filed with the SEC free of charge by contacting EFI's information agent for the tender offer. The tender offer will not be made to, and tenders of EFI's common stock will not be accepted from or on behalf of holders, of EFI's common stock in any jurisdiction in which the making or acceptance of such tender offer is not permissible.

Sign & Digital UK 2010 will be held on 13 - 15 April at the NEC, Birmingham

Sign & Digital UK, co-located with Screenprint and The Digital Signage Showcase is the leading event for today''s vibrant UK visual communication industry. Spanning 3 days at the NEC, Birmingham, the exhibition attracts unprecedented levels of quality visitors from across the industry. The event offers a unique and unrivalled opportunity to keep pace with a huge range of the latest products and services, as well as the prospect of networking and meeting a broad mix of key industry buyers and decision makers.

With over 21 years experience, this exhibition has continually evolved to give visitors a true insight into the industry today and in the future, which is why it can boast to be the biggest, most visited and longest established  visual communications event in the UK.

The '09 show was again a great success - here are some of the things that have been said about Sign & Digital UK 09:

Mike Lewis, sales and marketing coordinator – Hybrid Services/Mimaki:
“So far the show has been absolutely fantastic. We have been busy from day one, have taken lots of orders already. We shall definitely be booking again!

Allan Ashman, Managing Director - Atech:
“We were delighted when our first client walked on the stand and signed the order form for two products straight away.”

Brett Newman, Head of Product Development - Roland DG ( UK ):
“We took orders from the very first day and I think within a couple of hours of the show opening, which is great! That’s obviously what we are here to do and because of the class of people coming through the door, they’re purposefully coming to make a purchasing decision here at the show. Will we be rebooking? Of course! We’ve done this show forever; it is as simple as that.”

Dean Carpenter, Director, Laserite:
Sign & Digital UK has delivered to us a significant number of high quality leads, several of which have already turned into sales.”

Janice Fairfield - Fairfield Displays & Lighting Ltd:
“The 2009 Sign & Digital show was well planned and has been a great success for us.We will definitely be back next year.”

Mark Dale, Director - PFS:
“The interest we have had was on a more serious level than at any other show.”

Phil Kneale, Sales and Marketing Director - Graphtec (GB):
Graphtec (GB)’s stand was kept busy all three days at Sign & Digital UK. It was our best Sign & Digital UK show in 10 years, despite the recession. Customers came with money in their pockets.

Amy Le Corney, marketing manager - Robert Horne Group:
“We’ve so far sold a couple of laminators, and a couple of printers, and we’ve got some really good leads for some more hardware later on that we hope to close in the next couple of weeks. Sign & Digital UK is a key exhibition for Robert Horne, so we will definitely re-book for next year.”

Sarah Janes of Neschen:
“The show has been lively, informative and above all busy.


Exhibitors: To get involved in the 2010 show please contact the show team

Visitors: To be informed when registration opens click here

"In the face of continuing tough market conditions we increased operating margin, reflecting the strength of our franchise businesses and the effectiveness of our operating model," said Dean A. Scarborough, president and chief executive officer of Avery Dennison. "The combination of fixed-cost reductions and increasing variable margins positions the Company for strong profit growth when markets improve."

"While the rate of volume decline in the third quarter improved compared with the first half of the year, this was largely due to a slowdown in inventory reductions," Scarborough said. "Our end-markets remain soft, and we continue to be cautious about the pace of their recovery."

"I want to note the excellent performance of our employees in such uncertain times," Scarborough said. "They have maintained their focus on serving our customers, operating our businesses, and laying the groundwork for the future. This has been hard work, and they've done a tremendous job."

For more details on the Company's results for the quarter, see the Company's supplemental presentation materials, "Third Quarter 2009 Financial Review and Analysis," posted at the Company's Web site at www.investors.averydennison.com, and furnished under Form 8-K with the SEC.

Third Quarter, 2009 Results by Segment
All references to sales reflect comparisons on an organic basis, which exclude the impact of acquisitions and foreign currency translation. All references to operating margin exclude the impact of restructuring, asset impairment charges, lease cancellation costs, and other items.

Pressure-sensitive Materials (PSM)
* Roll Materials sales declined, reflecting weakness in end-markets. Sales continued to decline in the more economically sensitive Graphics and Reflective Products division.
* Operating margin increased as productivity offset the impact of reduced fixed-cost leverage, while the effects of pricing and raw material trends continued to cover the cumulative impact of 2008 inflation.

Retail Information Services (RIS)
* The decline in sales primarily reflected reduced demand for apparel in the U.S. and in Europe, and caution on the part of retailers.
* The decline in operating margin reflected reduced fixed-cost leverage, pricing, and other factors that more than offset the benefit of restructuring and productivity actions.
* The Company is continuing initiatives to reduce fixed costs in light of current market conditions, while introducing new products and improving value-added services to increase its share of this large market.

Office and Consumer Products (OCP)
* The decline in sales reflected weak end-market demand, led by slower corporate purchase activity. The sales decline was partially offset by strong back-to-school sales, due in part to expanded distribution and consumer trade-up to more durable binders.
* Operating margin declined as the benefit of productivity actions was more than offset by the impact of reduced fixed-cost leverage.

Other specialty converting businesses
* The decline in sales is primarily attributable to lower volume of products sold to the housing and construction industries.
* The increase in operating margin reflected restructuring and productivity improvements that more than offset reduced fixed-cost leverage.

Consolidated Items and Actions
* In the fourth quarter of 2008, the Company began a restructuring program expected to reduce costs across all segments of the business. The Company is targeting $160 million in annualized savings by mid-2010 (estimating $75 million benefit, net of transition costs, in 2009). The Company estimates that it will incur approximately $130 million of total restructuring charges associated with these actions, with approximately $110 million to be incurred in 2009. In addition to the savings from these new actions, the Company expects approximately $40 million of carryover savings in the year from previously implemented actions.

At the end of the third quarter of 2009, the Company achieved run-rate savings representing approximately 70 percent of its restructuring target.

* The effective tax rate in the third quarter was negative 7 percent, while the adjusted tax rate was positive 7.5 percent. The effective and adjusted tax rates for the full year are expected to be in the low single-digits and low double-digits, respectively. The ongoing annual tax rate is expected to be in the low 20 percent range, varying significantly from quarter to quarter.