wfn.org | ELCA Publisher Cautiously Optimistic as 2005 Nears End

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ELCA NEWS SERVICE

October 26, 2005

ELCA Publisher Cautiously Optimistic as 2005 Nears End
05-202-JB

     MINNEAPOLIS (ELCA) -- Augsburg Fortress, the publishing
ministry of the Evangelical Lutheran Church in America (ELCA), is
more than $1 million ahead of its 2005 sales forecast through
September, the board of trustees learned when it met here
Oct. 14-15.
     The news is a significant departure from past financial
reports.  In recent years board members were often told of losses
because the ELCA publisher was unable to achieve its financial
goals.
     Actual sales were $28.9 million through September, compared
to a forecast of $27.8 million for 2005.  Financial results for
the first nine months of this year compared to the first nine
months of last year show at least a $2 million improvement, said
John Rahja, Augsburg Fortress chief financial officer.
     Reasons for the improvement are a combination of quality
products, "upgraded" sales and marketing staffs, and a focused
sales and marketing strategy, said Jim Donohue, Augsburg Fortress
senior vice president, sales and marketing.
     A key piece of Augsburg Fortress' sales success this year is
the "Here We Stand" confirmation series, which includes a popular
and successful seller, "The Lutheran Handbook."  The Handbook
contains information about what it means to be a Lutheran, with
emphasis on theology plus not-so-serious subjects such as what to
bring to a church potluck, how to stay alert in church and how to
respond when someone sits in your pew.
     Augsburg Fortress leaders expressed cautious optimism as the
company headed into the fourth quarter.
     "This is a wonderful glimpse of this company's potential
finally coming to fruition," said Annette Citzler, board of
trustees chair, La Grange, Texas.
     "We aren't around the corner yet, but we do think we can see
it from here," said Beth A. Lewis, Augsburg Fortress president
and chief executive officer, in her report to the board.
     Lewis praised the company's "amazing" executive staff for
their work to turn the company around.	She also emphasized a
familiar theme: When Augsburg Fortress is competitive with
quality products, prices and service, congregations of the ELCA
should buy from Augsburg Fortress.  Lewis said this is especially
true with staple items, such as offering envelopes, worship and
communion supplies, Sunday School materials and Vacation Bible
School materials.
     "It becomes a stewardship question. Any income we make in
excess of our expenses is reinvested back into the development of
new ministry resources for this church and the larger Christian
community." she said.  "We don't want to back away from being
intentional.  This is a partnership, and we have partners in this
ministry.  We need people to be intentional about what they buy,
and we want them to buy from us."
     This year the company was in a position to provide grant
funds to ELCA Domestic Disaster Response, following Hurricane
Katrina and Hurricane Rita, Lewis reported.  The company
collected more than $65,000 in gifts, and it gave that plus
$25,000 to support the ELCA's recovery efforts, she said.  The
gifts emphasized the publisher's strong ties to the church, and
it was particularly meaningful for the staff, Lewis said.
     For 2006 the board approved a revenue forecast of
$40 million, up $2.3 million or 5.5 percent over 2005.	"Our
intention is to be very conservative in terms of revenue growth.
We want to underpromise and overdeliver," Lewis told the board.
The board also approved a strategic plan for 2006 and beyond.
     Company managers reported to the board that a series of new
products will be introduced in late 2005 and next year.  For
example, Augsburg Fortress has begun introducing a series of
"brand extensions" related to The Lutheran Handbook and a new
ecumenical volume, "The Christian Handbook," introduced this
month.	Some 36,000 copies of The Christian Handbook were sold in
advance of the book's appearance on the market, Donohue reported.
     In addition, Augsburg Fortress plans to introduce "The
Lutheran Handbook for Pastors" and "The Lutheran Handbook on
Marriage" in April 2006; later in the year it plans to introduce
"The Lutheran Course on Marriage."  It will also introduce "The
Christian Handbook for Pastors" and "The Christian Handbook on
Marriage" next April.
     The company will introduce new Web-based materials in its
popular "New Proclamation" preaching resource series and a
CD-ROM, "Hermeneia."  The first five volumes of a new Spanish-
language Biblical commentary series, "Conozca su Biblia," will
also be launched in spring 2006.
     A new 2006 Vacation Bible School resource, "Gospel Express,"
has been introduced.
     In October 2006 new worship resources, including a new
worship book, "Evangelical Lutheran Worship," will be introduced.
The 2005 Churchwide Assembly endorsed the ELCA worship project
when in met this past August in Orlando, Fla.
---
     Information about Augsburg Fortress is available at
http://www.augsburgfortress.org on the Web.

For information contact:
John Brooks, Director (773) 380-2958 or news@elca.org
http://www.elca.org/news