wfn.org | Sales Are Up At Augsburg Fortress

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ELCA NEWS SERVICE

November 12, 1998

SALES ARE UP AT AUGSBURG FORTRESS
98-228-SS*

     MINNEAPOLIS (ELCA) -- The board of trustees of Augsburg Fortress,
Publishing House of the Evangelical Lutheran Church in America (ELCA),
heard good news and bad news at its Oct. 22-24 meeting here.  "Augsburg
Fortress has areas of concern and future challenges," said board chair Todd
P. Engdahl of Denver, "but it's operating at stable, secure levels now and
is in a good position with cash available for operations."
     That hasn't always been true in recent years.  Board members were
told that year-to-date sales through August were $36 million, up 2.3
percent from 1997 figures.  A growth in book sales offset a decline in
education resources.  Operating expenses so far for the year are below
budget, and the publishers show an operating profit of nearly $1.9 million.
     Timothy I. Maudlin, audit committee chair, Eden Prairie, Minn., said
of the audit process, "It's delightful to talk about a profit plan rather
than about an operating loss."
     Caution still is needed, however, because the three Canadian
locations have experienced significant foreign currency translation losses.
In addition, inventory that's not salable constitutes nearly a third of
total inventory.
     Augsburg Fortress is working on the inventory issue with help from an
outside consultant, the Manchester Companies.  In a closed board session,
Mark Sheffert from Manchester discussed the continuing work on an action
plan for disposition of the excess inventory and steps to prevent its
build-up again in the future.  Augsburg Fortress and Manchester will
develop a detailed business plan for meeting future challenges that will be
brought to the spring 1999 board meeting.
     The board committed itself to anti-racism training for the fall of
1999 when new board members will be in place.  Augsburg Fortress, in
conjunction with the ELCA's Commission for Multicultural  Ministries, is
developing a process for such training.
     Discussion on anti-racism training included the topic of staffing at
the publishing house.  Board member Paul Wee asked, "Are you setting any
target goals?  I encourage you to set goals on recruitment, or this could
be just a lot of pious talk."
     The Rev. Robert N. Bacher, executive for administration in the ELCA's
Office of the Bishop, pointed out, "There are several elements to diversity
training: recruitment, the sensitivity of staff and multicultural
resources."
     Board member Dorothy F. Ricks of Philadelphia underscored staff
sensitivity. "If [current staff] don't overcome their racism, recruitment
won't work.  You have to have a good atmosphere for people coming in so
they know they have a place."
     In other business the board:
     + Reappointed the firm of Deloitte and Touche as accountants and
auditors.
     + Heard a report on the Capital Reserve Fund by Tom Hussian of
Lutheran Brotherhood -- which manages the fund -- pointing out that the
fund performed well despite recent stock market declines.
     + Visited the newly opened Augsburg Fortress/Luther Seminary
Partnership Store on Luther's campus in St. Paul, Minn.  Discussions
continue with other ELCA seminaries about the possibility of partnering in
seminary stores.

[*Sonia C. Solomonson is senior editor for The Lutheran, magazine of the
ELCA.]

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