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Menasha-Based Banta Corp. Closes Book on Best Year Ever

Posted on: Monday, 20 February 2006, 18:00 CST

By Pete Bach, The Post-Crescent, Appleton, Wis.

Feb. 20--MENASHA -- A year that broke earnings records has Banta Corp.'s chairwoman thinking like a winning competitor.

"In so many ways, business is like sports," said Stephanie Streeter, chief executive officer, president and chairwoman of the Menasha-based Banta.

Streeter -- a sports enthusiast who is also a member of the U.S. Olympic Committee, drew an analogy between her company and major events at the 2006 Winter Olympics in Torino, Italy.

"Banta had a very good 2005, yet we fully understand that one successful year -- one fast run down the mountain -- doesn't guarantee future success. As of Jan. 1, we were back up on top of the mountain," she said.

Bolstered by a strong fourth quarter, earnings from continuing operations reached an all-time high, increasing 11 percent to $68.3 million, with earnings per share rising 15 percent to $2.76.

Banta, a printer and supply chain management giant that employs about 1,400 in the Fox Cities, recorded full-year 2005 earnings of $72.7 million, an increase of 18 percent over 2004's figure of $61.5 million.

The secret to the company's success? Geoff Hibner, Banta's chief financial officer, said it's keeping an eye on the company's "four strategic cornerstones."

"It's focusing on the right markets and then making investments in those segments that really sets us apart," he said. "We try to distinguish ourselves, not to everybody but just the ones that really fit our capabilities."

By focusing on its core businesses, Banta officials decided to sell off its health care products division in February 2005. At the time of the $67 million deal to Fidelity Investors, Streeter said the sale was part of the company's plan to grow and develop its two primary businesses -- printing services and supply-chain management services.

Although one of its major competitors had yet to issue its full 2005 financial summary, Banta's print sector appears to have outperformed the U.S. printing industry as a whole while maintaining solid relationships with its overseas supply chain customers.

Analysts took notice.

John Beagle, managing director of Grace Matthews, an investment banking firm with a Milwaukee office, agreed Banta performed as well as it did by striving for exceptional service to its niche clients.

"If you can find a spot where you can add value, you can generally get paid for it," he said.

Hibner said the company expected the first half of 2005 to produce relatively flat results, and it did. But in the second half of the year, things moved ahead. Banta brought a new press on line, two presses were moved from one location to another so they could be more productive and a few other presses at the plant's Midway plant in Menasha also were rebuilt.

"In the third quarter, all these things came together," Hibner said.

Hibner said a strong balance sheet promises to keep the sturdy, 105-year-old company around many more years.

"We produce a nice amount of cash every year and have relatively low debt. We continue growing the business internally as well as make the acquisitions to grow the business externally at the same time."

A CLOSER LOOK

--What: Banta Corp.

--World headquarters: 225 Main St., Menasha

--What they do: Print books and other paper products; supply chain management services

--Founded: 1901

--Employees: 1,400 in Fox Cities 2005 revenues: $1.54 billion

--On the Web: www.banta.com

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Copyright (c) 2006, The Post-Crescent, Appleton, Wis.

Distributed by Knight Ridder/Tribune Business News.

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BN,

Source: The Post-Crescent

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