MCL - NYSE & TSE:
Moore Corporation's New President And Chief Executive Officer Announces
$100,000,000 Cost Savings Initiative And Intensified Customer Focus
BANNOCKBURN, Ill. AND TORONTO, Jan 3, 2001 (BUSINESS WIRE) --
Moore Corporation Limited (NYSE: MCL)(TSE: MCL.)
Following his appointment on December 21, 2000 to the position of President and
Chief Executive Officer, Robert G. Burton today announced a series of
initiatives designed to aggressively eliminate costs from the company while
simultaneously intensifying focus on customers.
Mr. Burton stated:
"As I stated in December, I am excited to have been presented the opportunity to
lead this dynamic and strong company. Moore Corporation with appropriate
direction is positioned to grow and to deliver results.
However, after an initial review of the organization it is, in my opinion,
glaringly apparent that the results of the company are unacceptable. The costs
of this company are completely out of line with our revenue. As a result of this
misalignment, I am initiating actions that are designed to reduce our expenses
by $100,000,000 during the course of the next 12 to 18 months.
Included in this aggressive cost savings initiative will be a review of all of
our business lines; productivity goals; capital spending and return on
investment; training initiatives; financial controls; business processes;
procurement; logistics; energy utilization; organizational structure; MIS/IT
structure, spending and future direction; disposition of non-essential assets
(including real estate) and a complete review of all facility locations
including the location of the headquarters, various business units and our
geographically dispersed back office operations.
Additionally, while very much regrettable, the truth of the matter is that we
have significantly more people in the organization than are required to meet the
needs of customers. The organization is top heavy. There is a significant amount
of redundancy within the organization. We have made processes more complicated
than they need to be resulting in both a waste of time and money. We will set
about with initiatives to immediately centralize duplicative functions and
eliminate non-essential jobs, activities and programs. In the next 30 to 60 days
we will begin a headcount reduction of approximately 10% with an emphasis at the
headquarters facility. Managers will be expected to wear multiple hats and add
value in various roles within the company. This move will result in lower
operating costs, improved cost of goods sold, improved operational efficiency,
swifter decision-making, better communications as well as create a consistent
and more effective approach to managing our business.
We have a tremendous talent base of dedicated employees in this organization. I
know that many of them see the same waste of money and resources that I see. By
reducing layers of management and tapping the potential and ideas of employees
that have not been visible in the organization I expect that we will be able to
generate better, more efficient ways to manage the business."
Burton added:
"In line with our goal and to ensure appropriate emphasis on customers, revenue
growth and cost containment, I am today taking on the additional responsibility
of being the senior manager of our forms and labels business. This business
segment accounts for 50 percent of our consolidated revenue and is a key
component of our future. I am not pleased with the results of this unit. I am
unwilling to turn the leadership of the unit over to anyone until I personally
understand what needs to be done to ensure its sustained success".
Burton concluded:
"While reviews will take place and changes will occur, we cannot lose sight of
our need to expand our already impressive focus on customers and ensure that our
sales team and our operations have the tools and support to meet this challenge.
We need to take to a new level our partnership with our customers. We need to
ensure that we are continually positioned to meet and exceed their ever-changing
needs.
There is a lot that needs to be accomplished at Moore and I look forward to
immediately setting a course to grow this company and ensuring its success. This
company with its strong sales team, dedicated employee population and creative
manufacturing talent has all the components to be successful. We have tremendous
opportunities and this is one reason why I chose to invest $2,000,000 of my own
money into the company. I plan on initiating meetings and communicating with
investors, customers and employees to discuss the opportunities and action plans
I have for the company. The company has a rich history and I look forward to
ensuring that there is a strong foundation from which to grow as we move through
this new millennium. As we finalize decisions and make other changes we will
continue to keep our customers, shareholders and employees updated on our
progress. We are working on behalf of this group to ensure our success and to
deliver results. Most of all we fully understand that we are working for our
shareholders to increase the value of their investment in Moore Corporation
Limited."
Moore Corporation Limited is an international provider of products and services
that help companies communicate through print and digital technologies. As a
leading supplier of document formatted information, print outsourcing and data
based marketing. Moore designs, manufactures and delivers business communication
products, services and solutions to customers. Moore operates in complementary
markets: Forms, Print Management and Related Products which includes Label
Systems and Customer Communication Services including personalized direct mail,
statement printing and database management. The Moore Internet address is
www.moore.com.
Burton, former Chairman, President and CEO of World Color Press, is also an
investor in Chancery Lane/GSC Investors, L.P., a private equity vehicle led by
Theodore Ammon and GSC Partners, a private investment firm, which on December
20, 2000 completed its previously announced strategic investment in Moore.
This news release contains statements relating to future results of Moore
(including certain anticipated, believed, planned, forecasted, expected,
targeted, and estimated results and Moore's outlook concerning future results)
that are "forward-looking statements" as defined in the U.S. Private Securities
Litigation Reform Act of 1995. Readers are cautioned not to place undue reliance
on these forward-looking statements and any such forward-looking statements are
qualified in their entirety by reference to the following cautionary statements.
All forward-looking statements speak only as of the date hereof and are based on
current expectations and involve a number of assumptions, risks and
uncertainties that could cause the actual results to differ materially from such
forward-looking statements. Factors that could cause such material differences
include, without limitation, the following: the effects of paper price
fluctuations on Moore's forms operations, execution of key strategies (including
Moore's digital and Internet strategies), the rate of migration from paper-based
forms to digital formats, future growth rates in Moore's Customer Communications
Services businesses, the impact of currency fluctuations in the countries in
which Moore operates, general economic and other factors beyond Moore's control,
and other assumptions, risks and uncertainties described from time to time in
Moore's periodic filings with securities regulators.
CONTACT: Moore Corporation Limited
James E. Lillie
847/607-7128
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