For Tuesday, March 21, 2000 Moore Corp. pegs loss for the quarter at up to $10M Tough going for stock: Company stresses need to enhance its digital role By DAVID STEINHART The Financial Post

Business forms maker Moore Corp. said yesterday it expects to post a $6-million to $10-million first-quarter loss, after warning earlier its results would be below analysts' expectations. The Toronto-based company, which has restructured over the past two years by closing plants and cutting its workforce, expects a net loss per share of between 8c and 11c for the quarter ending March 31. (All figures are in U.S. dollars).

"We have to continue our cost reductions with more vigour and look to further our role in the digital world," said John Laurie, vice-president and treasurer.

Mr. Laurie said the news of a profit reduction came as a surprise. He expects the company's stock to have a long, tough go of trying to climb back.

"We have to be able to show the market some stability in the second quarter," he said.

Moore shares (MCL/TSE) closed yesterday at $5.25 (Cdn), down $1 to a new 52-week low and down more than two-thirds from their 52-week high of $16.40 (Cdn). The stock was trading above the $30 (Cdn) level in mid-1997.

Yesterday's announcement fleshed out details of a warning first issued more than a month ago.

Moore said the first-quarter shortfall was due mainly to reduced revenues at its forms and labels division, Moore North America. The company attributed the lower revenues to Y2K inventory stockpiling by its customers and the move toward electronic forms.

"While we are disappointed in our first-quarter results, we do expect to increase normalized operating income for the year 2000 by up to 10% as compared to the 1999 base of $91-million," Ed Tyler, Moore's president and chief executive, said in a statement.

"It is essential we reposition our company to take advantage of market and technological opportunities for longer-term growth," he said.

"We believe that our investment in digital solutions will position Moore as a leader in the growing digital market segment."

The company said it lost some low profit margin contracts, which contributed to fixed overhead costs, and there were some delays in implementing major contracts. The fact that companies are replacing paper-based forms with electronic ones also contributed to the revenue shortfall, Moore said.

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-- Martin Thompson (mthom1927@aol.com), March 21, 2000