Slumping Banta Restructuring Groups
MENASHA, WI—With its shares languishing at a two-year low and profits down 52 percent in the second quarter, Banta Corp. announced it was reorganizing its print sector in order to cut costs and provide long-term stability.
Second quarter earnings plummeted from $33.8 million in the second quarter of 2005 to $16.1 million in 2006. The sale of its health care business fueled its 2005 performance.
Stephanie Streeter, chairman, president and CEO of Banta, said the company was reorganizing its five print divisions into two divisions, thus eliminating management infrastructure while reducing general and administrative costs.
Its book, publications and consumer catalog divisions will now be called Banta Publishing & Catalog Solutions. Its direct marketing and literature management divisions will be meshed under the heading Banta Direct Marketing Solutions.
The print sector reorganization is expected to generate annualized pre-tax savings of approximately $3 million, beginning in 2007.