Transcontinental Sees Strong Improvement in Profitability

Transcontinental continued to improve its financial position during the quarter, with a ratio of net indebtedness (including the securitization program) to adjusted operating income before amortization of 2.08 at April 30, 2010, versus 2.40 as at January 31, 2010 and 2.59 as at October 31, 2009.

Financial Highlights
In the second quarter of 2010, Transcontinental generated consolidated revenues of $510.0 million, down 4% from $531.1 million in the same quarter in 2009. Excluding divestitures of publications, plant closures, the paper effect and the exchange rate effect, revenues were up 2%.