Burton Cenveo Results Unacceptable
ENGLEWOOD, CO—Citing a net loss of $97 million for the first nine months of 2005, new Cenveo Chairman and CEO Robert Burton declared the financial results of the company "unacceptable" and vowed to turn the company around in short order.
"Looking back at Cenveo's results for the first nine months of the year, it is clear that the financial results of the company are completely unacceptable," Burton said in a release announcing the company's third quarter results. "Turning our performance around, and doing so quickly and effectively, is my Number One mandate."
Burton is also confident that he will be able to reduce the company's overall cost structure by $75 million by the end of 2006, ahead of the two-year timetable he had initially projected prior to taking the helm at Cenveo.
Among the areas that have been or will be addressed under the initiative: centralization of general and administrative functions; consolidation of Cenveo's vendor base and new purchasing initiatives; streamlining IT processes and infrastructure; corporate and field human resources staff rationalization; plant consolidation and rationalization; and elimination of all discretionary spending.
Burton has also challenged his entire organization to seek out an additional $25 million in savings by the end of 2006 to help bring Cenveo's cost structure in line with that of its competitors.