Printing, packaging demand falls in 1Q despite economic improvement

The demand for printing, publishing, packaging and paper distribution fell despite a surge in the economic output in the first quarter of 2002. The printing and publishing activity reported an 8.8% year-over-year decline in March 2002. Some of the companies in the commercial printing industry reported a decline in profits and revenues in the first quarter of 2002 due to highly competitive industry environment and increased expenses. Other companies such as Graphic Packaging International Corp have resorted to cost reduction programs to increase operating profit margins.