Quad/Graphics reports Q2 loss
Commercial printing company Quad/Graphics saw an operating loss of $23.7 million in the second quarter of 2010, as well as a net loss of $35.6 million. The company, which closed its acquisition of Worldcolor July 2, saw an operating profit of $8.2 million for Q2 2009 but a net loss of $7.2 million for the same period.
The Sussex, WI-based company recorded net sales of $394.3 million for the second quarter, an improvement over last year's $389 million Q2 net sales. For the first six months of 2010, it saw net sales of $798 million, a drop from last year's $804 million.
Quad/Graphics saw an operating loss of $19.7 million for the first six months of 2010, and a net loss of $44.1 million for the same period. In 2009, it saw operating income of $19.5 million for the first six months of the year, but a net loss of $11.7 million for the same period.
“Pro forma and as reported results in the second quarter were as expected,” John Fowler, EVP and CFO of the company, said in an earnings statement. A Quad/Graphics representative could not be immediately reached for comment.
Quad/Graphics said August 5 that it will close five plants that employ approximately 2,200 workers to improve efficiency. By the end of this year, the company plans to shut down plants in Clarksville, TN; Dyersburg, TN; Corinth, MS; Lebanon, OH; and Reno, NV.
“Following the closing of the acquisition on July 2, we immediately began the integration process,” Joel Quadracci, chairman, president and CEO of Quad/Graphics, said in an earnings statement. “We have hit the ground running, and believe we are on target with our plan to achieve the previously announced $225 million in synergies within 24 months of closing, and our team is properly incentivized to achieve more.”