Transcontinental Posts Fourth-Quarter Profit
A favorable tax adjustment helped Transcontinental, one of North America’s largest printers, post higher-than-expected profits this week.
The Montreal-based company reported its fourth-quarter profits rose 16 percent to C$51.6 million ($44.5 million U.S.) because of the positive impact of a C$15.1-million “unusual favorable” income tax adjustment.
Revenue for the company was C$583.1 million for its fourth quarter, down slightly from C$539.9 posted for the same quarter a year before.
For the overall fiscal year 2006, Transcontinental’s revenue was flat at $2.19 billion.
“Our results for fiscal 2006 are in line with our annual objective,” said Luc Desjardins, president and chief executive officer of Transcontinental. “We executed strongly, controlling costs through many efficiency-improvement and reorganization initiatives to counter the foreign-exchange impact and difficult market conditions in our commercial printing and cataloge- and magazine-printing niches.”
Desjardins also said the company should benefit in 2007 from the reorganization in its book printing and U.S. direct marketing operations it completed this year.
Transcontinental placed sixth on Book Business’ annual “Top 30 Book Manufacturers” list, featured in Book Business’ June issue.
Book Business will look at the fourth-quarter results of the Top 10 book manufacturers in its Feburary 2007 print issue.