Although both R.R. Donnelley and Banta Corp. recorded increases in their book printing operations in 2000, Banta had the better year. According to the company's 2000 annual report, sales to the book market rose 30% last year, to $363 million. The increase was due in part to Banta's $19.5-million ($11 million in cash, $8.5 million in debt assumption) acquisition of Southeastern Color Graphics as well as strong demand from the educational publishing sector.
Net sales in Donnelley's book publishing services group increased 0.7%, to $780 million, although value-added sales (sales that exclude the cost of materials passed through to customers) rose 3.5%, to $533 million. Sales were up slightly to both the consumer and education markets. Donnelley also noted that it converted about 1,500 titles into e-book formats.
Banta and Donnelley also differed on their outlook for 2001. While Banta said it still expects to meet its earnings targets for the year, Donnelley lowered its earnings projections from $2.20—$2.35 per share to $1.95—$2.10 per share. Among the factors contributing to the lower forecast is a drop in reprint orders from its book customers.
