Schawk Posts Record-High Net Income
Consolidated net sales in 2010 were $460.6 million compared to $452.4 million in the same period of 2009, an increase of approximately $8.2 million, or 1.8 percent. Year-over-year sales were positively impacted by changes in foreign currency translation rates of approximately $5.2 million, as the U.S. dollar decreased in value relative to the local currencies of certain of the company’s non-U.S. subsidiaries.
Consumer packaged goods (CPG) accounts sales during the full year of 2010 were $329.0 million, or 71.4 percent of total net sales, compared to $318.7 million in the same period of 2009, an increase of 3.2 percent, reflecting increased product and brand activity by the company’s clients. Advertising and retail accounts sales in 2010 were $88.4 million, or 19.2 percent of total sales, a decrease of 1.5 percent, from $89.8 million during the full year of 2009, primarily driven by the loss of a non-core retail client. Entertainment accounts sales for the full year of 2010 of $29.1 million, or 6.3 percent of total sales, decreased 11.3 percent, from $32.8 million in the same period of 2009, driven by continued declines in promotional activity.
Gross profit was $178.6 million during 2010, an increase of $7.5 million from the same period of 2009. Full-year 2010 gross profit, as a percentage of sales, increased to 38.8 percent from 37.8 percent in the prior-year period. The full-year improvement in gross profit percent was largely driven by the improved operating leverage resulting from higher sales and certain cost-reduction actions enacted by the Company during 2010.
Selling, general and administrative (SG&A) expenses declined approximately $6.9 million to $124.2 million during 2010 from $131.1 million in 2009. The decline in SG&A expenses year over year was primarily driven by certain cost-reduction activities implemented in 2009 and 2010 partially offset by approximately $1.6 million of business and systems integration expenses related to the Company's information technology and business process improvement initiative.