Schawk Signs Gravure Cylinder Supply Agreement, Posts Sales Decline
President and CEO David A. Schawk commented, “Our first quarter 2011 revenue reflected typical first-quarter softness relative to other quarters of the year coupled with continued cautionary spending by our consumer packaged goods clients reflecting their concern over elevated commodity prices. During this period of continued economic uncertainty, we continue to focus on managing our costs effectively and positioning our company for future growth, particularly in developing and emerging regions. In fact, we recently have seen success with certain of our CPG clients as they expand further into these global markets. Furthermore, we remain focused on expanding our diverse service offering across our client base and driving operational excellence throughout our organization.”
Consolidated Results for First Quarter Ended March 31, 2011
Consolidated net sales in the first quarter of 2011 were $107.2 million compared to $111.7 million in the same period of 2010, a decrease of approximately $4.5 million, or 4 percent. The quarter-over-quarter sales decline was partially offset by $1.4 million of foreign currency translation gains, as the U.S. dollar declined in value relative to the local currencies of certain of the Company's non-U.S. subsidiaries.
• Consumer packaged goods (CPG) accounts sales in the first quarter of 2011 were $82.3 million, or 76.8 percent of total sales, compared to $84.4 million in the same period of 2010, a decrease of 2.5 percent. The decrease over the prior-year quarter was primarily driven by decreased product and brand activity by the company's CPG clients.
• Advertising and retail accounts sales of $18.5 million, or 17.3 percent of total sales, in the first quarter of 2011 decreased 11.2 percent, from $20.8 million in the prior-year period. Included in the decline in Advertising and retail accounts sales is a $1.9 million decline in revenue related to the previously disclosed loss of a non-core, retail client during the third quarter of 2010.