Transcontinental Reports $6.4 Million Loss in First Quarter
In the latest sign of the printing industry's current woes, Transcontinental Inc. yesterday reported a $6.4 million first-quarter loss. The company said its direct mail, magazine publishing and commercial products printing businesses were hit hardest during this period.
The company reported a slight growth in revenues, from $596 million in first quarter 2008 to $604.1 million in 2009; however, excluding its acquisitions and the positive impact of paper prices and the exchange rate, revenues were actually down 10 percent.
As we reported three weeks ago, Transcontinental is currently conducting a rationalization plan that includes the elimination of about 1,500 jobs, several plant and publication shutdowns, and a number of other cost-cutting measures.
"We are confronting a situation that Transcontinental has never had to deal with before," said Francois Olivier, president and CEO. "We are determined to protect the financial health of our business even as we continue to integrate the new marketing services and communication platforms that our customers are demanding. The situation is a difficult one in human terms, but we are acting in the best interests of our employees and shareholders. We have asked our people to use their initiative and creativity to help us weather this storm. We are monitoring the situation very closely and will make the necessary adjustments if the situation deteriorates further."