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McPherson’s rues PMP merger decision

Monday, 03 March 2008
By Print21

The ACCC’s knock-back of McPherson’s merger with PMP book printer, Griffin Press takes its toll on the company.

McPherson’s achieved a first half earning of $15.17 million, a 29 per cent increase, but its printing division had decreased by $500,000 to only $1.9 million.

In a statement outlining the results, McPherson’s attributed a number of factors to this weak result: "The revenue decline was due to some reductions in core customer values, and generally subdued market activity. Margins were slightly lower, reflecting the impact of production cost increases."

Adding to this was a decline in long-tun volumes available in the Australian book printing market. "[This] continues to limit the opportunities for domestic printers to consistently achieve the equipment utilisations and efficiencies required," McPherson’s claimed.

The company is still hopeful that a successful merger like that which it attempted in 2007 could put McPherson’s printing division back on track. "The merger proposal with Griffin Press, recently rejected by the ACCC, remains the best long-term option to preserve a large scale book printing industry in Australia," the company said.

In the meantime, McPherson’s said that it would continue to work towards achieving cost reductions and higher efficiencies.

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