Valassis had fourth quarter revenue of $206 million, down from $221.9 million last year. Earnings rose from $12.2 million to $28.2 million.
For the year, the company’s revenue slipped from $863.1 million to $849.5 million, and earnings fell from $125.7 million to $117.9 million. The quarter and the year ended Dec. 31.
Among the company’s mass-distributed offerings, free-standing insert revenue was down 3.9% for the year. But within this category run-of-press sales were up 24.1% for the year, to $31.9 million. Demand for this branch of Valassis’ mass-market services should remain strong throughout 2002, the company said.
A decline in new product introductions caused softness in the use of Valassis’s broadly targeted products. Revenue for this segment was up only 2.9% for the year, ending at $197.1 million. Valassis also said that reduced demand and increased price competition contributed to falloff in anticipated demand for this category.
Use of products and services delivered directly to individuals were strong in 2001, with revenue up 160.3%, to $39.3 million, during 2002. Within this category Valassis Relationship Marketing Services increased its revenues by 29% for the year.
The Livonia, MI-based company also said that it took advantage of paper cost declines during 2001, and saved 2.7% over 2000 in paper expenses.
“On the top line, we were less effected by the economic downturn than traditional media. We also have the added benefit of paper cost decreases during a weak economy,” Alan F. Schultz, Valassis chairman, president and CEO said in a statement.
