Valassis, Livonia, MI, generated $1.04 billion during 2004, up 13.9% from $916.5 million in 2003. The company’s net earnings slipped from $103.7 million to $100.7 million during the same period, largely due to increased costs of products sold and writeoffs of investments. The year ended Dec. 31.
Valassis categorizes its operations under four headings: Mass Products, Cluster Targeted Products, 1 to 1 Products and International & Services.
During the year, Mass Products, which includes co-op free-standing inserts, generated $493.8 million, up 0.7% from 2003. While this segment experienced single-digit growth levels, price reductions damped revenue growth within it.
Revenue for Cluster Targeted Products rose 9.8% during the year, generating $275.2 million. The company attributed the growth to an increase in demand for polybagged advertisements and preprinted inserts, as well as a rebound in customer product sampling programs.
1 to 1 Products showed the strongest revenue growth, ending the year at $61.8 million, up 59.3% from 2003. This division includes PreVision Marketing, Valassis Relationship Marketing and direct mail. Valassis acquired Catalina Marketing’s Direct Marketing Services in September, and the acquisition contributed $6 million to this division’s revenue. But the company also attributed growth in this segment to increased demand for frequent shopper card data-driven direct mail programs.
International & Services boosted its revenue 21.3%, to $29.1 million during the year. This division is made up of NCH Marketing Services, Valassis Canada and Promotion Watch.
