MONTREAL—Shortly after the deal closed, TC Transcontinental announced that two of the six Canadian facilities it recently acquired from Quad/Graphics would be closed and another folded into an existing plant. The measure is part of the company’s reorganization and rationalization of assets, a move that will see about 500 employees impacted.
Transcontinental’s integration of the six Quad/Graphics plants in Canada will result in the closure of the Dartmouth and Rivière-des-Prairies plants. Over the coming months, some 500 of the 6,900 employees currently working at 33 printing plants will be affected by the integration.
Transcontinental Inc. has reported a decrease in revenues by four percent in the first quarter, from $514.8 million to $495.9 million, driven primarily by the sale of its black and white book printing business. Revenues were also impacted by lower volume from the non-recurring revenue from the printing contract for the Canadian Census last year.
“The important acquisition of the Canadian assets of Quad/Graphics is a milestone in our development as it strengthens our position as the leading printer in the country and allows us to leverage the major investments we have made to our printing platform over the last several years,” said François Olivier, Transcontinental president and CEO.
Quad’s net sales for the fourth quarter of 2011 were $1.31 billion, down from $1.39 billion for the same period in 2010. It recorded a net loss of $6.8 million for the quarter, compared to net earnings of $26.5 million in the four quarter of 2010.
Rastar Inc., a subsidiary of Transcontinental Inc., is using the increased productivity of two HP Indigo 7500 digital presses and HP’s focus on client service to win new business and adjust to changing market needs.
“We are very pleased that our financial partners continue to demonstrate their confidence in our company, strategy and prospects. This agreement provides us with the flexibility we need to pursue our strategic plan and also recognizes our disciplined approach to financial management,” said Nelson Gentiletti, chief financial and development officer.
In his speech, Rémi Marcoux explained his decision to step down as chairman, lauded the company’s adaptability and looked to the future. “My decision has been planned to ensure an orderly and transparent transition in the chair of the board. Isabelle (Marcoux) has all the qualities needed for this role.”
Driven primarily by its Printing sector, Transcontinental increased its revenues by 1 percent, from $2.028 billion to $2.044 billion, for fiscal 2011. The printer’s adjusted operating income also was up 1 percent, from $249.9 million to $252.7 million.
Commercial printing industry news briefs, including items on RR Donnelley, Sandy Alexander, Quad/Graphics, Yurchak Printing, Brown Printing, Modernistic, Transcontinental, WildfireXM, West Linn Paper, Mohawk Fine Papers and Presstek.
