Quebecor World Reports $226M First Half Net Loss
Printer has made ‘important progress’ following bankruptcy filing, CEO says.
Commercial printer Quebecor World reported a net loss of $226.3 million during the first half of 2008, down from a $20.5 million net income during the first the half of 2007. Consolidated revenues for the half were $2 billion, down from $2.3 billion during the same period last year.
For the second quarter Quebecor World posted consolidated revenue of $976 million, compared to $1.1 billion during the first half of 2007. Operating income, before fees, was $20.5 million, down from $40.8 million during the second quarter last year.
Adjusted EBITDA was $92.7 million in the second quarter of 2008, down from $113.2 million during the same period last year.
Quebecor World attributes the lower first half revenue to lower paper sales, decreased volume, continued price pressures and net of taxes of $42.7 million associated to its bankruptcy filing earlier this year.
"We have made important progress in the last six months to preserve the long-term sustainable profitability of our company while working through a process to ensure fair and equitable consideration for all stakeholders," president and CEO Jacques Mallette said in a statement. "We have restructured our U.S. operations towards a more customer-focused approach and we continue to introduce new products to enhance our full-service offerings to help our customers better reach or serve their customers."
During the first half, Quebecor World renewed several agreements including one with Wenner Media to continue to print Rolling Stone, Us Weekly and Men’s Journal; one with Bauer Publishing to print Woman’s World, First for Women, In Touch Weekly, Life & Style, J-14 and Life Story; and one with Meister Media.
In May, the printer sold its European operations to a group of Netherlands-based investors for more than $200 million.