Despite Difficult Economy, Transcontinental Improves Profitability
MONTREAL—September 10, 2009—Before unusual items and despite the difficult economic situation, Transcontinental’s profitability in the third quarter increased due to its rationalization program and the daily efforts by employees across the organization to improve efficiency and reduce costs. Furthermore, the full impact of the new contracts announced previously, including contracts to print the Rogers Communications’ magazines and direct marketing products, the startup of printing of the San Francisco Chronicle daily paper, the customers gained in flyer and newspaper printing, the excellent performance in educational book publishing, and the success of its integrated service offering which combines new digital platforms with print, partially offset the decrease in revenues stemming from the recession.
“What is especially satisfying in our third-quarter results is the improved profitability over the two previous quarters and compared to the solid third quarter of 2008,” said François Olivier, President and Chief Executive Officer of Transcontinental. “For the first time this year, our financial results were better than last year’s. We’re beginning to see the full impact of the tough decisions the recession obliged us to make from the start of the fiscal year. I’d like to thank our employees for their commitment to their company, which has had them working on many efficiency improvement and cost-savings initiatives. Thanks to everyone’s efforts, Transcontinental is now a more flexible organization and in a position to keep developing its integrated service offering, which is unique in Canada. Our enviable financial position, strengthened by two new loans and an increase in our credit facilities in the third quarter, means that we can continue to invest wisely and prudently in our future.”
“The market is still fragile,” noted Mr. Olivier, “but we are headed in the right direction. I am certain that we will come out of the recession stronger and in a good position to take advantage of the economic recovery.”