Quebecor World Announces Record Results for Third Quarter
Quebecor World Inc., Montreal, the world's largest commercial printer, said yesterday that it had a record third quarter as a result of garnering more cost savings than expected from its acquisition of World Color Press.For the three months that ended Sept. 30, Quebecor World revenue reached $1.6 billion, a 30 percent increase over the same period last year. Operating income totaled $202 million, a 60 percent increase from the same quarter in 1999. Net income was $89 million, 35 percent more than last year.
"We continue to deliver improved year-to-year results while at the same time managing the largest merger in the history of the commercial printing industry," Charles G. Cavell, president/CEO of Quebecor World, said in a statement. "Earnings targets are meeting, and in some cases exceeding, our expectations in spite of the unfavorable impact of foreign exchange translation on our European income."
In addition, Cavell said, "We have now completed our first full year since the World Color acquisition. We are significantly ahead of schedule with respect to the integration of operations, which is approximately 80 percent complete. The synergies and cost savings are close to double what we built into our business plan. We have kept every promise we made at the time of merger and fully expect that we will be able to continue improving results, on all levels."
Also, during the quarter, the company announced its expansion into Brazil with the signing of a contract with Abril S.A., the country's leading publisher of consumer magazines.
"Our position in Latin America was reinforced by a new 10-year, $170 million contract, allowing us to build our first printing facility in Recifé, Brazil," Cavell said. "We strongly believe there are significant growth opportunities in Latin America. During the quarter we added management expertise in the region to be better able to take advantage of opportunities as we move forward."
