ELCA NEWS SERVICE
February 27, 2006
ELCA Publishing Ministry Exceeds 2005 Sales Goal by $2 Million 06-028-JB
CHICAGO (ELCA) -- Augsburg Fortress, the Minneapolis-based publishing ministry of the Evangelical Lutheran Church in America (ELCA), achieved a $1 million increase in product sales from 2004 to 2005, and exceeded its 2005 sales goal by more than $2 million. This was the first time in 10 years the publisher had a $1 million increase in product sales and exceeded its sales goal, said Beth A. Lewis, Augsburg Fortress president and chief executive officer.
Actual sales in 2005 were $38.9 million. The company began the year with a sales forecast of slightly less than $36.9 million.
Lewis attributed the company's 2005 sales success to "wonderful" new resources such as "The Lutheran Course," an adult forum curriculum intended as a companion piece to "The Lutheran Handbook." The handbook, published in March 2005, was intended as a serious and humorous teaching tool for Confirmation students and is part of the company's "Here We Stand" print and Web-based Confirmation curriculum. It quickly became a popular item for all Lutherans and has sold more than 116,000 copies. The companion course materials went on sale Dec. 28 and sold out the first day, Lewis said.
The publisher also introduced "The Christian Handbook," an ecumenical version of "The Lutheran Handbook," which sold more than 30,000 copies since its introduction in October 2005. Subscriptions to "Sundays and Seasons.com," a Web-based worship planning and resource site, sold well, as did "core resources" in faith formation and worship, Lewis said.
"Our sales and marketing are better and more focused, and customer service is much improved," Lewis told the ELCA News Service.
"We had a fabulous sales year," said John Rahja, Augsburg Fortress' chief financial officer. He said the company was able to manage its expenses while achieving greater productivity and efficiency in its operations.
The disappointing news was that Augsburg Fortress fell short of its goal of an operational breakeven in 2005. Unaudited financial results showed an operating loss of $400,000 compared to a forecast loss of $573,000. A key factor affecting the operating loss was the publisher's defined benefit pension plan expenses, Rahja said.
"We're disappointed in the operating income figures," Lewis said. "We thought we'd get to breakeven for 2005."
In October 2005 the Augsburg Fortress board of trustees approved a revenue forecast of $40 million for 2006, up $1.1 million or 2.8 percent over 2005. To meet that goal the publisher plans to introduce several new products.
This year Augsburg Fortress is planning to introduce several "brand extensions" of "The Lutheran Handbook." It is also planning to introduce new Web-based materials in its popular "New Proclamation" preaching resource series and a CD-ROM version of "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 initiative that will be launched at synod assemblies this spring is "Akaloo," a lifelong intergenerational faith formation resource for congregations.
Last year the ELCA publisher introduced a new 2006 Vacation Bible School resource, "Gospel Express."
Later this year new worship resources, including a new worship book, "Evangelical Lutheran Worship," will be available through Augsburg Fortress. ---
Information about Augsburg Fortress is at http://www.augsburgfortress.com on the Web.
For information contact:
John Brooks, Director (773) 380-2958 or news@elca.org http://www.elca.org/news ELCA News Blog: http://www.elca.org/news/blog