Banta Corp., Menasha, WI, earned a net income of $11.8 million, or 43 cents diluted earning per share, for the second quarter of 1999, before the effects of a previously announced restructuring charge of $55 million. Last year, the quarter earned $13.4 million, or 45 cents diluted earnings per share.
Sales for the quarter were $229 million, compared to $316 million for last year. Lower paper prices and project-timing delays affected sales during the quarter. Including the restructuring charge, Banta took a second-quarter loss of $26.7 million, or 97 cents diluted earnings per share.
According to a statement from Banta, the numbers are consistent with the company’s April announcement that earnings would be lower for the first half of 1999 because of restrututing. The restructuring closed three unprofitable operations (loses from which helped lower second-quarter earnings); eliminated 650 jobs; and reduced costs across the corporation. The $55 million charge included about $30 million for asset write-downs and related non-cash expenses, while the remainder included cash outlays for employee severance programs and future lease expenses, among other obligations.
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