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Breaking News . . . Electronic Paper: Wake-Up
Call Ventura, California, November 16, 2002 - Dr. Ian Morrison, Director of Ink Technology for E Ink Corporation, will kick off this February's imaging media event with the latest word on emerging electronic media and the future impact this E-paper could have on conventional hard copy substrates. The announcement was made by Corky Burt, General Chairman of the Conference, saying "From Keynote to Wrap-Up, the program for Specialty Papers & Films 2002 has something urgent for everyone in the field of imaging media." While consumption of conventional paper and film media is expanding in ink jet and laser-based imaging processes-driven in part by expanding traffic on the Internet, by the growing accep-tance of digital color presses, and other positive factors-negative vectors are clouding industry forecasts. Among these forces are an economy that is flat-lined, concern over toxins in the mail, and the environmental impact of papermaking operations that continue to consume forest lands for print and media. As a consequence there is the possibility of a major change in how individuals and businesses might communicate in the future. Headquartered in Cambridge, Massachusetts, E Ink was founded in 1997 to advance electronic ink and develop applications and markets for updatable displays based upon this unique technology. The February seminar is presented by The Tiara Group, a high technology seminar, trade show and meeting planning firm headquartered in Ventura, California that is car-rying on the Imaging Materials Seminar ® series first launched by Diamond Research Corporation in 1984. Among the topics to be addressed in February are:
This event will again be held at The Westin Resort, Hilton Head Island, South Carolina. The dates are February 24-26, 2002. At Hilton Head, Dr. Morrison will join a distinguished panel of Speakers addressing scientific, marketing and management personnel from paper and film producers, coaters, converters and distributors and suppliers of raw materials and plant equipment to this industry. Over the past 18 years, this highly focused event for imaging media executives has been designed to enable them to conduct business, discuss sales, distribution, mergers, acquisitions, and licensing. Siting the conference at one of the most elegant seaside East Coast venues gives it a flavor all its own. These meetings have brought market strategists and imaging scientists together to jointly define the state-of-the-art and the state-of-the-market. "While relaxing in the comfort of this luxury hotel," says Tiara Group Chairman Art Dia-mond, "registrants can conduct serious business, learn about the newest technical advances, be briefed on the latest market trends, meet privately with suppliers, producers, and customers, and establish personal relationships with the industry's major players." The largest share of attendees are expected to come from the imaging industry: manufacturers of ink jet, thermal and toner-based imaging systems, producers of pig-ments, dyes and colorants for imaging media; papermakers, paper and film coaters and converters; dealers and distributors of imaging equipment; narrow- and wide-format digital color imaging equipment makers. For more information, please contact: IP, STORA ENSO MUM Consolidation among major mills has been fairly common in the paper industry lately, driven perhaps by declining profits and a weak economy. In May 2000, for example, IP bought rival Champion International for $7.3 billion. And, as this story breaks, an article in The New York Times (August 29, 2001) claims that Mead is planning to acquire Westvaco for $3 billion in Mead stock. Commenting on the rumored union of IP and Stora Enso, an informed
paper industry analyst writes, "I have to believe there
will be absolutely no pejorative impact on the Stora Enso is a three-year old company formed in 1998 by the merger of Finland's Enso, a forest and paper industry company, with Swedish papermaker Stora. In a merger of its own in August 2000, Stora Enso bought Consolidated Papers (Wisconsin Rapids, Wisconsin) for $4 billion. Stora Enso won't comment on the rumor, said Tim Laatsch, Senior Vice President of communication and investor relations, at the North American office in Wisconsin Rapids. Neither will competitor IP. "We don't comment on rumors of that manner," said Jenny Boardman, Media Relations Manager for International Paper. IP produces office papers under the brand names HammerMill, Great White, Legacy, and Brite-Hue. HammerMill papers are specifically designed for sensitive office imaging equipment-high-speed copiers, laser printers, color copiers, ink jet printers, and plain-paper fax machines. The Great White brand, with up to 30 percent post-consumer recycled fiber, includes recycled-content multipurpose, laser, ink jet, and coated ink jet paper. International Paper (www.internationalpaper.com) is the world's largest paper and forest products company. Businesses include printing papers, packaging materials, building materials, chemical products and distribution. As the largest private landowner in the U.S., the company manages its forests under the principles of the Sustainable Forestry Initiative program, a system that ensures the perpetual growing and harvesting of trees while protecting wildlife, plants, soil, air and water quality. Headquartered in Stamford, Connecticut, IP has operations in nearly 50 countries, employs nearly 100,000 people and exports its products to more than 130 nations. Stora Enso (www.storaenso.com) makes a range of cut-size business papers for copying and printing and other uses extending from correspondence to faxing and high-volume copying. It also produces digital papers that are used for fast color-laser printing, black and white high-resolution copying, color ink jet, letterheads, laser printers and color copying. Editor's note: Neal McChristy, a freelance writer well-known to the imaging industry, is now contributing articles to Imaging News Online. You may contact him directly, by Fax: 708/260-3045; or E-mail: Neal McChristy at <freelance9@kscable.com> KATUN GROSSES $304.9 MILLION Larry J. Stroup, president and CEO, noted that it was the
first time Katun had reached $300 million in annual sales, "As
we move into our new fiscal period," said Stroup, "Katun
will continue to focus on being a strong business partner for
both our customers and suppliers." Significant management changes have also taken place during
the past fiscal year. Katun Corporation's Board of Directors
elected David G. Jorgensen Chairman of the Board, and Larry J.
Stroup was named President and CEO, replacing Terence Michael
Clarke. BTA, 101 COMMUNICATIONS FORM BTA Solutions magazine and The Copier Marketplace,
the 101communications' imaging magazine, will be merged into
a new publication called Office Technology, with the first
issue to be published in September. The last BTA-managed conference was held in early August and
the first 101-produced BTA conference is scheduled for June 2002
in Las Vegas. BTA will develop and produce the educational seminars
for the conference. HEWLETT-PACKARD HP's Chairman and CEO, Carly Fiorina, blamed the decline in the quarter on deteriorating global economic conditions and weakness in technology spending, particularly in the consumer sector. This is the third quarter that Fiorina has had to announce disappointing results for HP, a computer and printer manufacturer based in Palo Alto, Calif. Fiorina turned back an over-$600,000 bonus this year as the company had not matched financial expectations. Hewlett-Packard, with 93,000 workers, has already announced cuts earlier this year that will total about 4,700 positions. The stock dropped to 24 on the day of the announcement, but recovered slightly to 25.51 by August 1. "Economies around the world continue to weaken as we move through the quarter," said Fiorina. "Our consumer business is being particularly hard hit with revenues expected to be down 24 percent. On the other hand, our outsourcing and consulting businesses are expected to grow 20 percent and 9 percent, respectively, in U.S. dollars, 25 percent and 15 percent in constant currency; and our support business is expected to post gains of 4 percent in U.S. dollars and 9 percent in constant currency." Fiorina said the company continued to take decisive actions to improve HP's cost structure by simplifying its organizational model, prioritizing strategic investments, and retaining the right skills base for the future. "The elimination of the 6,000 jobs will result in a savings of about $500 million annually," Fiorina said. "These reductions are incremental to the actions we've already taken in the areas of marketing restructuring and management span of control and do not include the impact of outsourcing and divestiture decisions." "At the same time, we continue to make important strategic choices. During the quarter, we completed the sale of Verifone and announced our intent to acquire Comdisco's business continuity services business and StorageApps Inc." HP also has taken additional short-term actions to control expenses. One example is a voluntary payroll savings program implemented during the third quarter. More than 80,000 HP employees signed up and a savings of approximately $130 million is expected for the remainder of the fiscal year. KATUN FILES LAWSUIT Katun Corporation (Minneapolis, MN) has filed a lawsuit against Katun founder and former CEO, Terence Michael Clarke, who was replaced over a year ago. The complaint, alleging at least $20 million in damages, states Clarke used corporate funds to purchase two Colorado ranches and farm equipment, misused Katun money for his own interests and had company personnel work on the ranches, all without authorization from the Katun Board of Directors. Clarke, who now lives in Sanibel, Florida, was replaced in June 2000 as Katun CEO by Larry Stroup. The lawsuit was filed June 28 in U.S. District Court of Minnesota in Minneapolis. The court documented return of service of the complaint to Clarke July 9. The date set for hearing has not been listed on the court docket. Katun is one of the largest names in the office equipment industry, known for its copier equipment and replacement-parts business. Clarke established Katun in 1978, was board chairman and retains approximately a third of the shares of common stock. Two out of five positions on the board are held by Xerox, Stamford, Conn., which purchased 20 percent of the company in 1987. The complaint states "Clarke consciously failed to advise the Board of the extent of his self-dealing and he deliberately failed to present all but a few of the transactions to the Board for authorization. This pattern of conduct by Clarke continued over his entire term as Chairman of the Board." The lawsuit complaint states numerous instances of use of Katun corporate funds, in most cases, without authorization from the board. The complaint states Clarke:
The complaint says that an investigation of Clarke's activities began in April 2000 "to identify the full nature and extent and all potential improper activities by Clarke. As a result of that investigation and Clarke's responses thereto, Katun has determined that Clarke caused at least $20 million in damages, including interest, to Katun by directing Katun's funds to be spent for Clarke's self-dealing and personal benefit, all without any tangible benefit to Katun and all without Board knowledge, authorization or approval." The complaint alleges breach of duty of loyalty and self-dealing, duty of candor, breach of duty of due care, fraud and misrepresentation, conversion and unjust enrichment as reasons for relief. The complaint also states that "on those rare occasions when Clarke's decisions were questioned or challenged, Clarke would proclaim words to the effect that 'this is my (expletive deleted) company and I can do what I want with it.' " Clarke was contacted for comment about the lawsuit and a message left on voice-mail twice, with no response. The attorney for Katun, Craig Gagnon, Minneapolis, Minn., refused to comment about the case. Katun's current CEO, Larry Stroup, was contacted, but no comment was received by July 26, 2001. Editor's note: Neal McChristy, a freelance writer well-known to the imaging industry, is now contributing articles to Imaging News Online. You may contact him directly, by Fax: 708/260-3045; or E-mail: Neal McChristy at freelance9@kscable.com |