Profits Under Pressure: Part II

By Andrew Paparozzi
In April 1, 2008

Previously, we discussed how economic weakness was hurting corporate profits, and how the impact was being felt throughout the economy—by financial and nonfinancial companies alike. What about print?

The latest Quarterly Financial Report (QFR) from the U.S. Census Bureau shows that for printing and related services income from operations in the fourth quarter was down 4.5% from a year ago. Cumulative data from the four quarterly reports in 2007 have income from operations down 8.2% for the year. While data from the (QFR) are not precisely comparable to those used in the Gross Domestic Product (GDP) and National Income estimates (referenced in the previous posting), they represent an important component of those estimates.

In any event, you get picture. Along with the economy, protecting the bottom line remains a top concern for print and most other industries. This isn’t about to change anytime soon. NAPL’s latest outlook for 2008 views a decline in commercial printing industry sales from all sources (not just printing) a distinct possibility. See NAPL Printing Business Conditions: March 2008. At best we’re looking for growth of 1.5%. Profits remain under pressure.

Joseph V. Vincenzino

Andrew Paparozzi

Epicomm's Andrew Paparozzi, Vice President/Chief Economist, is well-known for his accurate and thoughtful discussions on the economy and US commercial printing industry. A foremost author and speaker on economic business trends in the printing industry, Paparozzi heads Epicomm's Printing Economic Research Center.

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