Reader's Digest details plans to sell, buy, cut
Article Abstract:
Reader's Digest Association Inc. is selling part of its 8,000-piece art collection valued at around $100 million that was compiled by the ailing company's founders Lila and DeWitt Wallace. The artworks, which Sotheby's believes will be sold for $100 million, will help Reader's Digest to pursue renewed growth despite being part of its legacy, noted chairman/CEO Thomas O. Ryder. In addition, BT Alex, Brown, associate analyst Trace Urdin stressed that Reader's Digest's decision to reduce marginally performing direct mail to just 25% from 20% would pose risks despite the resulting higher profits. Reader's Digest will also create direct response TV and radio. The company plans to trim its labor force by the hundreds over the next three-year period.
Publication Name: DM News
Subject: Construction and materials industries
ISSN: 0194-3588
Year: 1998
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'98 earnings drop 7 percent at Reader's Digest
Article Abstract:
Reader's Digest of Pleasantville, NY, posted a 7% drop in revenue, at $2.63 billion for 1998. Its earnings per share were down 56%, to 64 cents. As a result, the company's stock fell near its 52-week low, closing at 20 7/8 points recently. Reader's Digest attributed the decline to the recent strength of the dollar, lower mail quantities and lower response to promotional mailings. The firm intends to undertake a restructuring of operations as part of a three-stage plan to get back on track. It will announce on September 1998 how it will restructure cost and raise capital. While in December or January 1999, it will announce plans on how it will build business.
Publication Name: DM News
Subject: Construction and materials industries
ISSN: 0194-3588
Year: 1998
User Contributions:
Comment about this article or add new information about this topic:
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