Despite Difficult Economy, Transcontinental Improves Profitability
Transcontinental has set up a task force whose mandate is to produce an initial report on sustainable development within Transcontinental. Sustainable development includes social development, economic development and environmental protection. The report will be written to meet the standards of the Global Reporting Initiative, a respected reference which sets out the methodology for this type of report.
In addition, Transcontinental was again listed in the select group of the Best 50 Corporate Citizens in 2009, chosen by the magazine Corporate Knights. The magazine defines corporate citizens as ones who “do the best job of keeping their end of the social contract, while innovating solutions for the problems that will determine whether our civilizations succeeds or fails.”Corporate Affairs
On July 28, 2009, Transcontinental announced that it had concluded two new financing arrangements for a total of $135 million. This included a five-year loan of $50 million from the Société générale de financement du Québec, and a six-year loan of €55.6 million ($85.7 million) with HypoVereinsbank, a major European bank, to be used to purchase production equipment over the next two years.
Transcontinental also announced that it had added $25 million to the $125 million one-year credit facilities arranged with its bank syndicate on May 5, 2009. Transcontinental has thus obtained additional flexibility in managing its working capital and capital expenditures, or to meet any other specific need.
At its September 10, 2009 meeting, the Corporation’s Board of Directors maintained the quarterly dividend of $0.08 per share on Class A Subordinate Voting Shares and Class B Shares. These dividends are payable on October 23, 2009 to shareholders of record at the close of business on October 5, 2009. On an annual basis, this represents a dividend of $0.32 per share.
Upon releasing its quarterly results, Transcontinental will hold a conference call for the financial community today at 4:15 p.m. (ET). Media may hear the call in listen-only mode or tune in to the simultaneous audio broadcast on Transcontinental’s Web site, which will be archived for 30 days. For Media requests for information or interviews, please contact Maxim Labrie, Media Relations, at 514-954-4176.