Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: SATURDAY, March 30, 1991 TAG: 9103300244
SECTION: BUSINESS PAGE: A-10 EDITION: METRO
SOURCE:
DATELINE: NEW YORK LENGTH: Short
The price rollbacks, which takes effect Monday, essentially erase 5 percent raises that were announced last fall and took effect Jan. 1.
The savings impact, however, was expected to be minimized by already widespread discounting of list prices that resulted after haggling between suppliers and publishers. It was not clear when or if the paper companies would reinstate price increases.
The cancellation of scheduled price rises is the latest sign of the industry's far-reaching slump. Over the past two years, a steady fall in advertising revenue has led publishers to trim the size of their publications.
This week, at least three North American newsprint makers canceled price rises that took effect Jan. 1. Earlier this week, Canadian Pacific Forest Products Ltd. in Montreal rolled back prices and Toronto-based Abitibi-Price Inc. also canceled its price rise, industry officials said.
On Friday, MacMillan Bloedel Ltd., based in Vancouver, announced a similar price rollback.
The three companies join several others that rolled back prices earlier this month.
Most of the increases that took effect Jan. 1 upped list prices in the Eastern United States by $35, bringing the total price to $720 per metric ton. Newspapers in the Western states also paid $35 more, bringing their total metric ton cost to $665.
- Associated Press
by CNB