Transcon swings to first quarter loss of $6.4 million or 8 cents a share

Transcontinental Inc. lost $6.4 million in the first quarter, a $40 million swing from its profit in the same period last year. It attributed the loss to a decline in advertising. Revenues increased to $604.1 million from $596 million in the year-ago while net income, exclusive of unusual items, decreased to $15.1 million from $28.4 million. The loss for the period ended Jan. 31 was 8 cents per share, compared with earnings of 41 cents in 2008.

Transcontinental cited its U.S. direct mail activities, magazine publishing and commercial printing as being hit by the cancellation, decrease or postponement of promotional and advertising campaigns, mainly by financial institutions and car manufacturers.

Last month the company, which among its many other pursuits is Canada's largest consumer magazine publisher, announced plans to eliminate 1,500 jobs across its North American printing and publishing operations and said managers would be required to work two weeks without pay.