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| 31 Jan 2009 12:16:15 pm |
 I.P. has rough quarter |
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International Paper announced their 4th quarter earnings Thursday. It is always difficult to gauge how their Foodservice Business is doing - for reasons previously discussed, but this quarter was more difficult than the norm. Very little info was released on their Consumer Packaging Group (of which Foodservice is a part) other than more costly write offs for their Shorewood (high-end consumer packaging) division and a seeming inability on the part of the Coated Paperboard’s mill system to keep price increases up with cost increases. This last part should have a dramatic turn around here in the 1st quarter as virtually all of these costs have been decreasing rapidly with little sign of board decreases to accompany them.
Bottom line.... the Group (Mills, Shorewood and Foodservice) lost $3MM for the quarter. |
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Category : Companies
| Posted By : Mike |  Comments[105] |  Trackbacks [63] |
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| 28 Jan 2009 05:50:30 pm |
| Ouch! |
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Well Starbucks is out with their Q1 results and it is not at all pretty.
The most disturbing sign is their reported 10% decline in “same-store” sales. This is the most common measure of health for a store open at least one year. They attribute the decline to: “…lower volume of transactions and average value per transaction.”…. in other words, this particular metric has nothing to do with stores they have (or are in the process of) shut down. Starbucks reported on the period October through December 2008 (their 1st quarter).
Other notes of interest:
Will close an additional 300 stores (200 USA) in addition to what they had previously announced
Will further reduce both its new store openings in 2009 and their capital expenditures
Will further reduce employee headcount by as many as 6,000 (stores) plus 700 (staff)
They still made money and their cash position seems strong, so not likely they are going to fail (at least at this point)….. but watch those “same store sales” – critically important.
On a separate note, tomorrow International Paper announces their 4th quarter results, so we’ll take that opportunity to recap what we can of their Foodservice business, plus Pactiv and Solo’s recent results (which have been pretty darn good all things considered!).
MDA |
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Category : Companies
| Posted By : Mike | Comments[122] | Trackbacks [0] |
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| 05 Dec 2008 09:20:42 am |
| Solo Cup Announces Staff Reductions |
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Solo Cup announced Corporate Staff reductions earlier this morning. It is interesting as I had just been commenting to some folks on how it appeared they were really "beefing up" their marketing staff..... perhaps overly so (and I consider myself a marketing guy!) for a business that a short time ago was on its knees.
While certainly most unfortunate for those individuals affected, it should make Solo healthier in the long term and tells me good things about their CEO (willing to make tough, timely decisions). |
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Category : Companies
| Posted By : Mike | Comments[87] | Trackbacks [403] |
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| 04 Dec 2008 04:18:56 pm |
| Starbucks Reports Same Store Sales DOWN 9% |
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Starbucks today reported that same store sales were down 9% for the first nine weeks of this quarter and they will miss the consensus earnings estimate for this same first quarter of 2009. |
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Category : Companies
| Posted By : Mike | Comments[265] | Trackbacks [194] |
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| 25 Nov 2008 12:39:06 pm |
| Starbucks expects decrease in same-store sales for 2009 |
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Starbucks reported some discouraging news last night that could be of concern for the rest of the Specialty Coffee Market. Starbucks expects same-store sales to decline in 2009. Same store sales at a compnay like SBUX is a good way to judge how consumers overall are treating the Specialty Coffee Market. |
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Category : Companies
| Posted By : Mike | Comments[96] | Trackbacks [101] |
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