Transcon posts Q2 loss of $144.3 million

Transcontinental Inc., Canada's largest publisher of consumer magazines as well as being a major newspaper publisher and commercial printer, announced today that it posted a major Q2 loss of $144.3 million. Largely because of restructuring and other charges, that's a total swing of more than $180 million when compared with a profit of $36.9 million in the same period a year ago.

The quarterly loss represents about $1.79 a share. In early trading Tuesday, the company's Transcontinental A share were selling down 3%, at about $8.87.

Revenues fell 5% to $563.4 million from $595.1 million, mainly from a major decrease in the volume of direct mail in the United States and recessionary cutbacks in business flowing to the company's printing and publishing operations.

Adjusted net income, excluding unusual items, fell 11 per cent to $30.2 million from $34.1 million.

In addition to $27.5 million restructuring costs, the company booked $169.3 million in non-cash charges linked to impairment of intangible assets and goodwill write-offs, principally related to commercial printing.

"After three quarters of adjustment and refocusing, and assuming no further deterioration in the present economic situation and the execution of our rationalization plan, we are confident that our profitability will continue to improve in coming quarters," said Francois Olivier, president and CEO.