Bell & Howell Decides Not To Go Postal
In addition to reporting Q4 '97 financial results, Bell & Howell (Arlington Heights, IL) has announced that it intends to sell its postal contracting business, which accounted for only 3% of total 1997 revenue. For the year, B&H reported revenue of $857 million, a 4% increase over 1996. Q4 revenue of $245.6 million is relatively even with Q4 '96 revenue. Excluding a special $6.6 million charge, the company had a Q4 '97 operating cash flow of $35 million, a 21% decline from Q4 '96. Operating cash flow for 1997 was virtual even with 1996 operating cash flow. The special charge represents restructuring measures and inventory provisions in B&H's Mail Processing Division. Regarding the decision to sell its postal contracting business, whose primary customer is the U.S. Postal Service, B&H chairman, president and CEO James Roemer said that the business was having a hard time lining up with the company's new vertical strategy. "Our postal contracting business did not fit well with Bell & Howell's strategy of providing software and services to select vertical market niches," he said. Until a suitor surfaces, the business will run as usual, says Frank Gozzo, who heads the postal division. "We will continue to pursue new business opportunities around the world and continue to invest in new initiatives."