Quad Says Postal Rate Increase Will Have Negative Impact on Volumes

An unusually large postage rate increase, which triggered a price jolt for producers of magazines and catalogs, is expected to depress business for Quad/Graphics Inc.

The postal shock only adds to the pressures facing Wisconsin's massive industry of contract printers such as Quad, the biggest printer of magazines in North America, as well as the continent's largest printer of catalogs and retail inserts.

"It will more than likely reduce demand in the near term, further exacerbating the Postal Service's financial challenges," Quad Chief Executive Joel Quadracci told the conference call. "The Postal Service's action shows a fundamental disconnect with mailers and the