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News from the Evangelical Lutheran Church in America

June 6, 1996

IMPROVED

A new financial picture was presented to the board of
Augsburg Fortress, publishing house of the Evangelical
Lutheran Church in America after last year#s $11.8 million
loss.  The board met April 25-27 in Columbus, Ohio.  It
heard that much of the loss was due to changes in the
accounting method, inventory write-off and discontinued
operations costs, capital investments and the cost of
restructuring.  The Rev. Marvin L. Roloff, president, said,
#We are not in debt.  We have some money in the bank.#
Despite 1995's financial difficulties, he said, the publishing
house did not have to approach its $3.5 million line of
credit because of careful cash flow monitoring.  While
Augsburg Fortress is still operating in the red in the first
quarter of 1996, a $2.8 million profit is projected for the
year, according to Robert McNulty, vice president for
finance.  He told the board that most of Augsburg
Fortress#s income comes during the last half of the year.
The board passed a resolution initiating a #comprehensive
strategic plan that sets priorities among the businesses of
the house in relation to its constitutional mission and
embodies sound financial planning for the future.#  Another
action requires that #any vice president of Augsburg
Fortress selected by the president be elected by the board
or the executive committee acting on behalf of the board
before he or she is hired.#

[ELCA News and Information: 8765 W. Higgins Road,
Chicago, IL   60631; phone 312/380-2963]