A “perfect storm” of global events has resulted in long lead times for some paper grades – with mills resorting to allocation for the first time in over a decade – and printers and paper buyers have been warned to plan ahead for the rest of the year. The combination of factors affecting the supply of graphical papers includes increasing demand for pulp for other markets, such as tissue and hygiene products, which has pushed prices up to almost $1,200 (£883) a tonne. A year ago it was $700-$750. As well as pulp prices, other rising input costs for papermakers include chemicals and fillers. In recent years paper manufacturers have shut down paper machines in the face of declining demand, or converted lines to make other higher-value products, such as cartonboard. Click Read More below for additional information.

Meredith, now the nation’s largest magazine publisher, will slash magazine frequency and circulation levels and close print titles if a proposed 40 percent hike in postal rates over the next five years takes hold, its chief executive Thomas Harty said. The Postal Regulatory Commission is proposing price hikes from 34 to 41 percent for second-class mail, known as periodicals class. A vote is expected this spring. “The proposed increased for the periodical class will require Meredith to pursue magazine closures, circulation cuts, issue frequency reductions, conversions to digital-only formats and alternate delivery for some magazine subscription copies,” Harty said in testimony submitted to the PRC. Click Read More below for additional information.

FedEx Corp. today reported earnings of $2.19 per diluted share ($2.51 per diluted share on an adjusted basis) for the first quarter ended August 31, compared to earnings of $2.65 per diluted share ($2.82 per diluted share on an adjusted basis) a year ago. Both as-reported and adjusted earnings reflect the estimated negative impact of the June 27 cyberattack affecting TNT Express ($0.79 per diluted share) and Hurricane Harvey ($0.02 per diluted share). “The first quarter posed significant operational challenges due to the TNT Express cyberattack and Hurricane Harvey, and I want to thank our team members for their extraordinary dedication and performance,” said Frederick W. Smith, FedEx Corp. chairman and chief executive officer. “We are confident of our prospects for long-term profitable growth, and we reaffirm our commitment to improve operating income at the FedEx Express segment by $1.2 billion to $1.5 billion in fiscal 2020 versus fiscal 2017.” Click Read More below for additional detail.