Canadian Magazine Industry News
12 June 2009,     MONTREAL
Transcontinental reports Q2 loss, will lay off 250 more workers
Transcontinental has released its second quarter figures for the period ending April 30, reporting a loss of $144.3 million in the second quarter, compared to a profit of $36.9 million in the same quarter in 2008. The printing and publishing company also announced yesterday that it will cut another 250 workers, on top of the 1,500 lay offs announced earlier this year.

Transcontinental posted revenues of $563.4 million in Q2, down from $595.1 million in the same period last year.

The company attributes the loss to drops in U.S. direct mail (down by 50% in Q2 compared to 30% in Q1), the weak economy, and an overall decrease in printing commercial products, related in part to the decline in magazine and newspaper advertising.

In a conference call with analysts held Thursday and reported on by the Canadian Press, Transcontinental president and CEO Francois Oliver said the 1,750 job cuts—representing about 13% of the company's labour—will save the company $100 million in annual costs.

"While this rationalization plan comes at significant cost, when completed it will protect the corporation's financial health," Olivier said.

Highlights of the second quarter included the growth of the recently created Marketing Communications sector, several new contracts, including one to print all of Roger’s magazines, and the continuation of the company’s rationalization plan.
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