Transcontinental reports 94.2M Q4 income loss
In the fourth quarter of 2008, printer Transcontinental's consolidated revenues rose 6% for a total of $653 million. Net income decreased from $38.6 million to a loss of $94.2 million. On a per-share basis, it dropped from earnings of 46 cents to a loss of $1.17.
Transcontinental reported consolidated revenues rose 4% for the 12-month period ending October 31 for a total of $2.43 billion. Net income declined from $120.6 million in 2007 to $7.9 million in 2008.
The decline in net income was due mainly to restructuring charges related to the consolidation of the company's direct mail activities in the US.
In October 2008, Transcontinental approved a plan to restructure its direct mail activities in the US by consolidating production from its Warminster, PA, facility to its facility in Hamburg, PA. The transfer will be completed in January and will entail the elimination of 460 jobs. The annual production capacity of Transcontinental Direct USA will drop from 5 billion direct mail pieces to 3.5 billion.
Transcontinental says that it plans to accelerate the development of new services in advertising personalization and new communication platforms. To support this strategy, the company has created a new marketing communications sector, which will concentrate on the design and development of new marketing services.
Initially it will cover data analysis, premedia, permission-based e-mail marketing, personalized marketing, custom communications and the printing of marketing products. The marketing communications sector has annualized revenues of about $400 million.