Quebecor World Reports $2.2B Year-End Loss
Revenues for 2007 down 7 percent; company names restructuring officer.
After filing for bankruptcy protection earlier this year commercial printer Quebecor World has released its 2007 revenue report. Revenues were $5.7 billion, down 7 percent from $6.1 billion in 2006.
In 2007, the company posted a $2.2 billion net loss, compared to a $28.3 million gain in 2006. Quebecor World attributes the decrease in profitability to goodwill impairment charges, restructuring charges, a reduction of its North American operations and pricing pressures.
Quebecor World’s EBITDA in 2007 was $461.9 million. It was $579.9 in 2006. During the fourth quarter, the company posted $1.5 billion in revenue—flat when compared to the same period in 2006—and a net loss of $1.8 billion.
According to president and CEO Jacques Mallette, Quebecor World “has made important substantial efforts to stabilize our business and to reach out to all our stakeholders in this process. I am pleased with what we have accomplished so far, and it demonstrates the support of our customers, our suppliers and our employees to our business going forward.”
In January, Quebecor World filed for bankruptcy protection, and announced that it had entered into a $1 billion financing deal with Credit Suisse and Morgan Stanley. Earlier this week, the company slashed nearly 700 full-time positions between two facilities as part of a restructuring plan to reduce costs that the company announced three years ago.
In an effort to expedite its efforts to emerge from creditor protection, the company also has hired Randy Benson as chief restructuring officer. Reporting to the board of directors’ restructuring committee, Benson will work with the company’s senior management team to help further develop its restructuring plan.