On the print side, we’re helping our customers better target their consumers to increase their ROI and decrease waste, which improves the environment and our bottom line. Improving database management and increasing the services our growing direct marketing segment offers is one approach. Adding sophisticated zoning capabilities in the mail room of our outsourced newspaper printing plants is another.
When we start printing the San Francisco Chronicle in 2009, it will be distributed across some 400 zones, with specific inserts targeted for each. And, in book printing, we’re specializing in shorter and shorter runs with faster turnaround times, as technology and consumer habits drive the market toward niche products.
PI: There has been some significant industry consolidation recently in North America, e.g., RR Donnelley buying Banta, Perry Judd’s and Von Hoffmann; Cenveo acquiring Cadmus. Do you see this industry consolidation trend continuing?
DESJARDINS: Yes, I do. The North American printing industry is still relatively unconsolidated. In 2005, Research and Markets reported that the largest 50 companies held only about 30 percent of the market. Consolidation is a natural maturing process of any industry, and I see it continuing in ours for the foreseeable future.
PI: As a publicly held, international company, do you foresee Transcontinental growing more through acquisitions vs. organic growth?
DESJARDINS: Transcontinental’s “Evolution 2010” business project guides the company’s development. In it, we have set two growth targets—to grow sales organically by 5 percent on average per year; and to grow adjusted earnings per share, excluding the foreign exchange impact, by 10 percent on average per year. So, we plan to grow in both ways, depending on the niche and what opportunities are available.
PI: You recently announced the creation of a new Newspaper Division, based in the San Francisco Bay area, that will focus on U.S. publishers seeking to outsource their printing. Are you targeting the United States as your key market for international expansion?