Sales and earnings were off in the first quarter ended December 25 at Courier Corp., but the company said that it expected to still hit its financial targets for fiscal 2011 and even raised its earnings per share forecast. Courier attributed the shortfall primarily to timing of manufacturing orders in the religion market. Sales at REA also fell significantly due to a strong first quarter last year. Overall, sales fell 3%, to $61.2 million, and net income dropped to $1.7 million from $2.8 million.
Sales in the manufacturing segment declined 3%, to $53 million, due to the 22% drop in religious book sales that offset a 4% increase in education sales, and a 4% sales increase in trade sales. The highlight of the quarter, Courier said, was the installation of more efficient four-color presses that the company said will allow it to do more customized work as well as work with publishers over the entire lifecycle of a book.
In the publishing side, sales fell 7%, to $10.8 million, with sales at REA off 31% which Courier attributed to an “exceptionally strong” first quarter of fiscal 2010. Sales at Dover fell 3%, but the bright spot was a 7% increase at Creative Homeowner which has struggled in recent years due to the collapse of the housing market. Sales of home plans and home center book sales were both up in the period.
Courier CEO James Conway said the company was not worried about the slow start to the year and said Courier expects sales to increase between 5% to 10% in fiscal 2011 as well as improved earnings per share.
