Valassis, a Livonia, MI, marketing services company, said yesterday that its third-quarter earnings fell to $26.7 million from $32.7 million in the prior-year quarter.
Revenue for the quarter, which ended Sept. 30, was $230.1 million, up 7.4 percent from $214.2 million in third-quarter 2002.
The company said it was hurt by a lack of pricing power.
“The actual strength of our business is presently overshadowed by an unnatural pricing situation in the co-op free-standing insert industry, which is impeding our short-term results and outlook,” said Alan F. Schultz, Valassis chairman/president/CEO. “In 2004, we will generate substantial earnings and cash flow, and we are on schedule with our plan to recover market share in the co-op FSI business.”