AGI Media – Q2 Review 2011

Tony Garnish, Chief Executive, AGI Europe
Mark Caines, Chief Executive, AGI North America

AGI Media (“AGI” or the “Company”) is a leading global creative services and packaging provider to the filmed entertainment, video game, music, technology, telecom and personal care industries. The Company operates through a network of seven print facilities, five plastics facilities and six Creative Service Division offices located throughout the U.S., Europe and Australia. We formed AGI by acquiring the AGI Media packaging businesses of MeadWestvaco Corporation in September 2010.

AGI’s plastics businesses, Amaray and Amaray U.S., had a very solid quarter despite an environment of volatile resin costs. AGI’s print businesses, both in the U.S. and Europe, suffered during the second quarter as a result of weak market conditions and excessive costs due to restructuring efforts on both sides of the Atlantic. During the quarter, AGI’s U.S. print business achieved a number of important milestones in its major restructuring initiatives. The most significant event was the closure of the Jacksonville, Ill., facility in June and consolidation of that business into the Melrose Park, Ill., plant.

Amaray U.S., the U.S. plastics business, also demonstrated important progress during the second quarter. Amaray U.S. consolidated its footprint in Pittsfield, Mass., by combining operations from two buildings into one. The business’ strong results during the quarter were especially impressive in light of the volatility in resin costs, a result attributable to the Amaray U.S. team aggressively managing their business.

The story in Europe during the second quarter was similar to that in the U.S. A highlight for the quarter was the announcement that AGI won the prestigious Excellence in Safety Management award from the British Printing Industries Federation.