ACCO Brands Corporation (NYSE: ABD), a world leader in office
products, announced today that it has sold its GBC – Fordigraph Pty
Ltd subsidiary, based in Sydney, Australia, to The Neopost Group,
based in Paris, France. GBC – Fordigraph has been the exclusive
distributor of Neopost products in Australia for almost twenty
years.
Neopost intends to retain the existing management staff and
employees of GBC – Fordigraph and will be the exclusive direct
sales channel distributor for select GBC® print finishing products
in Australia. GBC – Fordigraph employs approximately 175
people.
The sale of GBC – Fordigraph will have no impact on ACCO
Australia or the company's Pelikan Artline joint-venture, which are
ACCO Brands’ two larger businesses servicing resale channels in
Australia.
GBC – Fordigraph had revenues of approximately US$46 million,
operating income from continuing operations of approximately US$5
million and earnings of approximately US$4 million (or $0.07 per
share), for the year ended December 31, 2010 The company will
account for GBC – Fordigraph as a discontinued operation. The
reclassification to discontinued operations will reduce ACCO
Brands’ previously reported full-year 2010 revenue, operating
income from continuing operations and earnings accordingly. The
reclassification to discontinued operations will reduce ACCO
Brands’ previously reported second quarter 2010 revenue, operating
income from continuing operations, and earnings by approximately
$11 million, $1 million and $1 million (or $0.02 per share),
respectively.
The company intends to file a Form 8K by June 30, 2011, that
restates company financial results through the first quarter of
2011 reflecting the reclassification of GBC – Fordigraph to
discontinued operations.
Adjusting for the impact of the divested business, the company
is reiterating its full year 2011 sales and earnings guidance for
the continuing operations. The company expects sales from
continuing operations to increase between 2-4%, before the effects
of foreign currency, and diluted earnings per share from continuing
operations, excluding the gain on disposal, to grow between 20% and
30%, on a normalized 30% tax rate basis.
Including gross proceeds from the sale, the company is
increasing its 2011 free cash flow target (after interest, taxes
and capital expenditures) to $100-110 million, up from $50-60
million.
About GBC – Fordigraph
GBC – Fordigraph, doing business as GBC Australia, is the
recognized Australian market leader for document finishing and
business mailing solutions with a reputation for quality,
reliability and service. GBC Australia provides equipment, supplies
and service for document binding, laminating, printing, shredding
and mail processing. This comprehensive product range provides
solutions to business, commercial, education, and government users
within the Australian market.
About ACCO Brands
ACCO Brands Corporation is a world leader in office products.
Its industry-leading brands include Day-Timer®, Swingline®,
Kensington®, Quartet®, GBC®, Rexel, NOBO, Derwent, Marbig and
Wilson Jones®, among others.
About Neopost
Neopost is the European leader and number-two world-wide
supplier of mailing solutions. It has a direct presence in 18
countries, with 5,500 employees and annual sales of €966 million in
2010. Its products and services are sold in more than 90 countries,
and the group is a key player in the markets for mailroom equipment
and logistics solutions.
Neopost supplies technologically advanced solutions for
franking, folding/inserting and addressing as well as logistics
management and traceability. Neopost also offers a full range of
services, including consultancy, maintenance and financing
solutions.
Neopost is listed in the A compartment of Euronext Paris.
Non-GAAP Financial Measures
“Free cash flow” and earnings using a “normalized” tax rate are
non-GAAP measures. There could be limitations associated with the
use of non-GAAP financial measures as compared to the use of the
most directly comparable GAAP financial measure. Management uses
the adjusted measures to determine the returns generated by its
operating segments and to evaluate and identify cost-reduction
initiatives. Management believes these measures provide investors
with helpful supplemental information regarding the underlying
performance of the company from year to year. These measures may be
inconsistent with measures presented by other companies.
Forward-Looking Statements
This press release contains statements which may constitute
"forward-looking" statements as that term is defined in the Private
Securities Litigation Reform Act of 1995.
These forward-looking statements are subject to certain risks
and uncertainties, are made as of the date hereof and the company
assumes no obligation to update them.
ACCO Brands' ability to predict results or the actual effect of
future plans or strategies is inherently uncertain. Because actual
results may differ from those predicted by such forward-looking
statements, you should not place undue reliance on them when
deciding to buy, sell or hold the company’s securities. Among the
factors that could cause our plans, actions and results to differ
materially from current expectations are: unanticipated impacts on
our business following our sale of GBC – Fordigraph; fluctuations
in the cost and availability of raw materials; competition within
the markets in which the company operates; the effects of both
general and extraordinary economic, political and social
conditions, including continued volatility and disruption in the
capital and credit markets; the effect of consolidation in the
office products industry; the liquidity and solvency of our major
customers; our continued ability to access the capital and credit
markets; the dependence of the company on certain suppliers of
manufactured products; the risk that targeted cost savings and
synergies from previous business combinations may not be fully
realized or take longer to realize than expected; future goodwill
and/or impairment charges; foreign exchange rate fluctuations; the
development, introduction and acceptance of new products; the
degree to which higher raw material costs, and freight and
distribution costs, can be passed on to customers through selling
price increases and the effect on sales volumes as a result
thereof; increases in health care, pension and other employee
welfare costs; as well as other risks and uncertainties detailed in
the company’s Annual Report on Form 10-K for the year ended
December 31, 2010, under Item 1A, “Risk Factors,” and in the
company's other SEC filings.
Acco (NYSE:ABD)
Historical Stock Chart
From Jun 2024 to Jul 2024
Acco (NYSE:ABD)
Historical Stock Chart
From Jul 2023 to Jul 2024