On May 24, the Consumer Product Safety Commission issued a notice of proposed rulemaking to effectuate the establishment of a statutorily mandated, publicly available, searchable online database containing consumer product safety information. The database is required by Section 212 of the Consumer Product Safety Improvement Act of 2008, which created a new §6A of the Consumer Product Safety Act entitled "Publicly Available Consumer Product Safety Information Database."
The proposed rule would establish requirements pertaining to the information to be included in the database and also would establish provisions regarding submitting reports of harm; providing notice of reports of harm to manufacturers; publishing reports of harm and manufacturer comments in the database; and dealing with confidential and materially inaccurate information.
The database, which can be accessed already at SaferProducts.gov, is potentially a worthwhile tool, providing both consumers and manufacturers with information that might be valuable. But it also portends significant product liability concerns for companies, including for those that are falsely accused.
Distributor News
Midlothian, Texas-based Ennis Inc. has reported financial results for the first quarter ended May 31, 2010.
For the quarter, consolidated net sales increased by $9.9 million, or 7.6 percent, from $130.8 million for the quarter ended May 31, 2009 to $140.7 million for the quarter ended May 31, 2010. Print sales for the quarter were $67.8 million, compared to $71.7 million for the same quarter last year, or a decrease of 5.4 percent. Apparel sales for the quarter were $73 million, compared to $59.1 million for the same quarter last year, or an increase of 23.5 percent. Overall gross profit margins ("margins") increased from 23.7 percent to 30 percent for the quarters ended May 31, 2009 and May 31, 2010, respectively. Print margins increased from 26.4 percent to 30.3 percent, and Apparel margins increased from 20.4 percent to 29.7 percent, for the quarters ended May 31, 2009 and May 31, 2010, respectively. Net earnings for the quarter increased from $6.6 million, or 5.1 percent of sales, for the quarter ended May 31, 2009 to $13 million, or 9.3 percent of sales, for the quarter ended May 31, 2010. Diluted EPS increased from $0.26 per share to $0.50 per share for the quarters ended May 31, 2009 and May 31, 2010, respectively. The company, during the quarter, generated $23.7 million in EBITDA (earnings before interest, taxes, depreciation and amortization) compared to $14.3 million for the comparable quarter last year.
As part of the strategic integration of Norwood Promotional Products and BIC Graphic operations, BIC Advertising & Promotional Products (APP) began an evaluation of business opportunities related to the Auburn, Indiana-based Messenger operation in the Fall of 2009. Several options were evaluated, including the sale of the business.
Bridgeport, Connecticut-based Prime Line's president and CEO Rick Brenner teamed with Arnold & Porter attorney Jennifer Karmonick to present a seminar on product safety and the impact of the Consumer Product Safety Improvement Act (CPSIA) on our industry at PROMOTIONS EAST two weeks ago in Atlantic City, NJ. The purpose of the seminar was to educate suppliers and distributors about how they can protect themselves and their customers through a better understanding of state and federal product safety legislation.
As part of its second annual Case Study Challenge, which kicked off on June 21, City of Industry, California-based Sweda Company has officially begun the search for the most innovative distributor project story--and if it's yours, it could be worth up to $5,000 cash plus an added bonus of a $2,500 credit memo for applicable distributor employers.
Last month, I discussed how to successfully bring your SEO copywriting in-house. However, what about businesses sitting on the other side of the in-house versus outsourcing fence? Yes, outsourcing means "relinquishing control" of your copywriting.
Crestline Custom Promotional Products, a direct marketing promotional products company that trades on its easy, customer-friendly ordering process, recently unveiled a new Live Chat feature on its website.
The new feature enables customers to communicate in real time with a Crestline customer service associate, so they can ask questions about products at the same time they browse the site for promotional products giveaways.
Dayton, Ohio-based distributor Shumsky Enterprises continues to grow as it seats Gary Ball as president of all business units. "Gary's passion is in developing efficient, profitable companies through team development, mentoring and coaching, allowing me to focus on my passions--new business development and new product ideation," said Michael Emoff, CEO and owner of Shumsky Enterprises.
Cleveland-based Proforma, a leading North American provider of graphic communications solutions, welcomed 11 new owners to its network.
The following new owners joined the Proforma network:
St. Louis-based Fleishman-Hillard International Communications announced that longtime McDonald's Corp. communications executive John Blyth has joined the firm as a senior vice president and partner.
