Brown: Goss order
backlog up; units profitable
Goss, TKS legal battle enters another chapter as Goss files petition with High
Court asking it to overturn appellate court decision.
By Chuck Moozakis
Editor-In-Chief
Goss
International Corp. Chief Executive Officer Bob Brown said the press vendor
earned a profit across all of its worldwide units and that the company is
bullish about the portfolio of products and services it’s able to offer
newspapers and other printers.
“We remain optimistic about
print, but we know it will change and we see changes in products and formats and
run lengths and these are the areas that customers are most focused on,” he said
at a pre-drupa press conference held in late March.
“At the end of the day, our
customers are focused on driving units of production down and improving their
overall flexibility.”
Among topics discussed at the
press conference:
•Brown said Goss earned a
pre-tax profit of approximately $60 million on revenues of just over $1 billion
in 2007. As the firm entered 2008, order backlogs hit $655 million, a figure
Brown said eclipsed 2007 projections.
•Goss will introduce a new web
offset press aimed at the sheetfed market. The machine, based on Goss M-600
technology, will be unveiled at drupa. Goss will also showcase at the convention
its FPS press, a Uniliner S with automatic plate changing and DigiRail, a Magnum
4-page press and a Sunday 4000 and Sunday 5000 press. On the postpress side,
Brown said Goss would display the Magnapak inserter and a high-speed commercial
stitcher.
•Postpress business continues
to grow, with volume in 2007 “very promising,” Brown said. “It looks like this
will continue in 2008 as distribution becomes more critical.” Brown said Goss
had enjoyed success through its alliance with Ferag and that Goss will continue
to leverage that partnership going forward.
•Shanghai Goss Graphic
Systems, Goss’ Chinese joint venture company, posted record revenues in 2007,
and has tripled its sales since 2000. Last year the company shipped 1,200 press
units, a combination of Magnum and Community presses. More than half were
exported from China to 28 other countries, Brown said.
•Goss’ cell-phone-to-print ad
technology, GossRSVP, is now undergoing testing in two markets. “We’re very
excited about the opportunity in this business,” Brown said. “It’s a small seed
that is growing into a pretty interesting tree for us.”
•Aftermarket sales and
services grew 15 percent in total volume last year. “Our overall aftermarket has
been a good mix of rebuilds and upgrades and we feel pretty optimistic there is
more opportunity to grow that side of the business and we’re investing
internally to do that,” Brown said. He also said Goss is evaluating rolling out
a press modification service that would enable Goss Metro users to convert their
legacy presses to permit 6-page-wide production.
Meantime, Goss filed a
petition with the U.S. Supreme Court asking it to reverse a decision by the 8th
Circuit Court of Appeals that lifted a U.S. District Court injunction preventing
TKS from taking steps to recoup the $31.6 million Goss won in its successful
antidumping lawsuit.
The appellate court’s decision
allowed TKS to take advantage of Japanese “clawback” legislation designed to
help the vendor recover the judgment by counter-suing Goss’ Japanese subsidiary.
“Our view is that the U.S.
District Court issued an injunction preventing TKS from taking advantage of
legislation that was enacted specifically against us,” Brown told Newspapers &
Technology in an exclusive interview.
“We believe the appellate
court decision was wrong so we are asking to be heard at the Supreme Court
level. Our opinion is that this is a rather significant issue, because Japan
unilaterally saw fit to vacate a court ruling and we believe the precedent it
sets for manufacturers is a dangerous one.
“It doesn’t seem to me that it
encourages investment in Japan when the country can attach a company’s assets
when it doesn’t like the punishment a company incurred because it broke the law.
And TKS broke the law.”