Cenveo Plans Cost Savings
ENGLEWOOD, CO—Cenveo announced a comprehensive plan to reduce operating expenses and streamline management functions, a plan that includes the elimination of about 125 jobs—mostly managerial positions. Through these moves, the company expects to save $9 million in 2005 and generate annual savings of $20 million. After having his May 6 formal proposal to take over Cenveo rejected, veteran print executive Robert Burton of Burton Capital Management informed the troubled printer that he will seek a special meeting of shareholders with the intention of removing the existing board members and replacing them with a slate that will "affirmatively act in the best interests of Cenveo's shareholders."
Margolis, 76, a Financial Guru
BALA CYNWYD, PA—Harris Margolis, 76, whose PIA Ratio studies enabled printers to measure their profitability against competitors for more than 40 years, passed away May 4. Mr. Margolis had been working at his accounting and financial consulting firm, H.R. Margolis Co., until two weeks before his death. He also wrote a number of books aimed at the commercial printing industry and created a printing industry hourly-cost-rate system.
SWOC Files Paper "Fixing" Suit
CHICAGO—Commercial web printer Service Web Offset (SWOC) has launched a class action lawsuit against a host of magazine paper providers, charging a conspiracy among the companies to fix prices, as well as other offenses. SWOC seeks treble damages, injunctive relief and attorney's fees/costs for itself and "all others similarly situated" who purchased magazine paper from the defendants during the period of January 1, 1990, through May 31, 2004.
Donnelley Secures Large Deals
CHICAGO—RR Donnelley recently signed a trio of long-term contracts, including an extension of the agreement to produce all of R.H. Donnelley's current telephone directories, worth $400 million. RRD also captured a $280 million, multi-year accord to print magazines and books for Meredith Corp. Finally, Donnelley netted a $60 million, multi-year deal to produce the entire stable of magazine titles by Penton Media, a business-to-business publisher of about 50 titles.