Transcontinental Has Strong Profitability Gain on Lower Revenue in Q1

Financial Highlights

In the first quarter ended January 31, 2010, Transcontinental recorded consolidated revenues of $559.3 million, compared to $625.4 million in the first quarter 2009, down 11%. The decrease stems mainly from an unfavourable exchange rate effect of $20.5 million, the divestiture or closure of plants and publications, net of acquisitions, which accounted for $18.2 million, and the decline in paper prices which had a negative impact of $10.4 million on revenues. Excluding the divestitures or closures of publications and plants, the impact of the exchange rate and paper prices, and the acquisitions in fiscal 2009, the decline in revenues was only 2.7%.