Cenveo, Consolidated Graphics report strong earnings

The US print industry continues to show signs of recovery from the recession this week as both Cenveo and Consolidated Graphics cited the improved business climate in reporting strong growth in sales.

Stamford, CT-based Cenveo, a leading provider of envelopes, custom labels, specialty packaging, commercial print, publisher solutions and business documents, said it expects an 11% rise in the first quarter of 2011 with net sales rising to US$503.1m when it formally reports its financials next week.

Cenveo noted the increased revenues over the same period in 2010 were driven both by the acquisition of MeadWestvaco's Envelope Products Group (EPG) as well as organic growth in the company's custom labels, commercial print, envelope, and specialty packaging products. Cenveo added gross earnings were also up 12% over the same period last year to US$51.1m.

While Cenveo declined a PrintWeek interview request, company chairman and chief executive Robert Burton said in a statement. "We delivered a strong quarter, and we are pleased by our performance in which we grew revenue and profit and began the integration of the EPG transaction. I am also encouraged by the continued momentum that we saw in our businesses as industry conditions continue to improve. Our sales initiatives focused on recruiting and cross selling have started to deliver their desired results."

Meanwhile, Houston, TX-based Consolidated Graphics, a US leader in sheetfed and web printing, reported revenues for the fourth quarter ending March 31 rose 8.9% over the same period last year to $258.1m, while adjusted net income for the three-month period jumped 56% to $8.9m.  For the full year, the company said adjusted net income was up 66% to $16.9m on a 6.4% rise in revenues.

"As we look ahead to the coming year, we are encouraged by the improvement we are seeing in our markets," said chairman and chief executive Joe Davis in a statement. "We have the strongest competitive position in our history and will continue to add to and differentiate our offerings, manage our cost and seek out quality acquisitions, in order to drive growth over the long term."