Commercial printer Transcontinental reported consolidated totaled $604.1 million in the first quarter ended January 31, compared to $596 million during the same quarter in 2008.
However, excluding acquisitions and the positive impact of paper prices and the exchange rate, the company said its consolidated revenues dropped 10%.
Transcontinental said its business was particularly affected by the cancellation, decrease or postponement of promotional and advertising campaigns, mainly by financial institutions and car manufacturers, which affected its US direct mail activities, magazine publishing and commercial products printing.
The company’s net income declined from $34.1 million in the first quarter 2008 to a loss of $6.4 million, a decrease of $40.5 million. On a per-share basis, net income decreased from 41 cents to a loss of eight cents.
To deal with the situation, Transcontinental said it will go forward with a rationalization plan that has included eliminating approximately 1,500 jobs, half of which are in the US. In addition, certain plants and publications have already been shut down, while others are slated for closure.