The world's largest commercial printer, Quebecor World Inc., said yesterday that its third-quarter profits fell 20 percent, as expected. The drop was blamed on reduced demand caused after the shock experienced by the U.S. economy following the Sept. 11 attacks.
The company said it recorded earnings of 46 cents per share for the third quarter of 2001, compared with 58 cents per share during the same period last year. Revenue fell from $1.63 billion to $1.62 billion.
Quebecor, which prints magazines and catalogs for retailers including L.L. Bean and Sears, typically derives about half its third-quarter income in September, said Charles G. Cavell, president/CEO of Quebecor World, Montreal. Terrorist attacks on the United States weakened consumer confidence and led to cancellations or circulation reductions among catalogers as well as business and airline magazines.
The company said cost reductions announced Oct. 9 would help offset losses from the slowing economy. Quebecor said it would cut 2,400 jobs, 6 percent of its work force, because of the economic fallout of the disaster.
Also helping the company cope with the economic environment is that 30 percent of its revenue is generated outside the United States. Revenue from Latin America rose 52 percent during the third quarter.