Quad/Graphics on Tuesday announced a $100 million cost reduction
plan as net sales were down 6.5 percent for the third quarter and
2.8 percent for the first nine months of the year.
President and CEO Joel Quadracci said the company would be “taking
swift and decisive action” in response to “a greater-than-expected
pullback in industry volumes and pricing pressures that accelerated
in the quarter, as well as lower productivity levels in our
reduction program will include reducing excess manufacturing
capacity through plant closures, increased focus on productivity,
reducing costs and implementing a new streamlined organizational
“We have a
long-standing commitment to being the industry’s low-cost producer
and these actions are a continuation of that commitment.
Quad/Graphics is focused on realizing improved efficiencies and
cost-savings while contributing to an overall better client
experience,” Quadracci said.
Quad’s net sales
in the third quarter were $1.2 billion and $3.3 billion for the
first nine months of the year. The company also lowered its
full-year guidance for net sales from between $4.8 and $4.9 billion
to between $4.6 and $4.7 billion.
continue to find ways to reduce our cost structure while generating
the strong Free Cash Flow that is the foundation of our historically
strong balance sheet,” Executive Vice President and Chief Financial
Officer Dave Honan said.
was given on which plants would be closed as part of the cost
reduction program. Quad has roughly 26,000 employees around the
country and in September Quadracci said the company would add
another 500 positions in Wisconsin in the next several years, but
added they would be the result of consolidation at other
“Please note: We
continue to hire in our Wisconsin network of plants as we continue
to manage our U.S. manufacturing platform, migrating work to
facilities where we can manufacture and distribute the work most
efficiently,” said Claire Ho, Quad’s director of corporate
communications. “Our Wisconsin platform is among the most efficient
platforms in the entire printing industry.”
<<EARLIER: Quad/Graphics envisions future growth