Augsburg Fortress sales ahead of expectations

This was taken from the December 2005 issue of The Lutheran by John Scott.

Augsburg Fortress, Publishers, is more than $1 million ahead of its 2005 sales forecast through September, the board of trustees learned when it met Oct. 14-15 in Minneapolis. The news is a significant departure from past financial reports. In recent years trustees were often told of losses because the ELCA publisher wasn’t able 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 2005 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, senior vice president, sales and marketing.

A key piece of the sales success is the “Here We Stand” confirmation series, which includes The Lutheran Handbook (see "Update: Lutheran Handbook goes ecumenical," page 10 in the print edition). 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 heads into the fourth quarter. “We aren’t around the corner yet, but we do think we can see it from here,” said Beth A. Lewis, president and chief executive officer, in her report to the board.

Lewis repeated a call for ELCA congregations, “as partners in this ministry,” to buy from Augsburg Fortress when it is competitive with quality products, prices and service.

This year Augsburg Fortress was in a position to give $90,000 from the company and its employees to support ELCA relief work after hurricanes Katrina and Rita.

For 2006 the board approved a revenue forecast of $40 million, up $2.3 million or 5.5 percent over 2005.