Fuelled by soaring disk media business, Nashua Corp, Nashua, New Hampshire is looking for a 20% rise in sales this year, chairman Charles Clough told analysts in New York, Friday, adding that profit growth should be rather better. He said that first quarter sales for the Computer Products Group, which produces hard and floppy disk media, rose nearly 50% from a year ago, in part as a result of the acquisition in May last year of Lin Data Corp, which makes thin-film discs. Without the acquisition, sales would have risen by 14%. 1988 earnings in the Computer Products Group should reach their highest level since 1983, said Clough. He indicated that rigid oxide disks and diskettes are driving this unit’s earnings and that the thin-film business, which has been losing money since it was acquired, is turning around. When we looked at our thin-film business last December, we anticipated that we would bring it to a break-even level by mid-year. We are on track with that assessment and have been moving toward it on a consistent, steady basis since January, said Clough. Sales of the Office Systems and Supplies segment an international office systems and a US supplies business – were up 22% unadjusted, 13% if adjusted for the weaker dollar. Copier volume and facsimile machine sales in particular are generating higher profits in this segment. Our Office Systems and Supplies business is running extremely well, said Clough. Our position and prospects are excellent both here and overseas. Clough expects the company’s capital spending to increase about 15% in 1988, with heavier expenditures in manufacturing equipment and reduced investment in copier rentals.
