Banta Q3 Earnings Down (10/25/2006)

Banta Corp., Menasha, WI, reported Q3 earnings fell to $15.9 million from $21.7 million a year ago due to restructuring and asset impairment charges and reduced pricing in its printing and supply-chain segments. Revenue rose slightly to $382.4 million in the quarter, compared with $381.1 million reported last year.

The company's print sector reported revenue of $271 million, compared with last year's $284 million. Operating earnings were $23.9 million, compared with the prior year's $26.2 million.

Banta's publishing and catalog division, which includes book, special-interest magazine and catalog businesses, reported improved Q3 revenue in trade books and business-to-business catalogs. Consumer catalogs and special-interest magazines, however, reported lower results for the quarter. Educational print results were below those posted in last year's strong Q3, which benefited from a more active state educational adoption schedule.

Direct marketing reported solid activity in personalized direct mail products, and strong growth in promotional kit assembly and fulfillment services for its growing base of healthcare providers. Results were negatively affected by pricing pressures in general commercial print and a slower-than-expected ramp up of the new on-press personalization capability at Banta's direct mail plant in Minneapolis, which has since gained momentum.

Banta is the target of a $1.21 billion hostile takeover bid by Cenveo. Last week Cenveo urged Banta in letter to respond to its $50 per share bid.

www.banta.com

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