Quad/Graphics Inc. said Wednesday it had a sharp decline in its
earnings and sales in the third-quarter.
Sussex-based printer faced price and volume reductions from
publishers of magazines, books and catalogs, and also faced
challenges as it integrates Vertis Holdings Inc., a
Baltimore-based printer Quad acquired out of bankruptcy in
“Third-quarter volumes across our U.S. platform were as
expected, but our results were adversely impacted by ongoing
industry pressures, economic and political challenges in Latin
America and a slower-than-expected turnaround in the underlying
Vertis business,” said Joel Quadracci, Quad/Graphics chairman,
president and CEO. “That said, the integration is going well and
we remain confident in our process to drive future cost-savings,
and improve the efficiency and productivity of our platform.”
recent quarter, net income fell 68 percent to $12.6 million,
from $39.7 million, in the year-ago period.
to $1.2 billion from $1.0 billion, but the entire gain was a
result of the Vertis acquisition, which didn’t belong to Quad
until this year. After adjusting the sales as though Vertis had
belonged to Quad in all of 2012 and 2013, sales would have
fallen 7 percent.
currently forecast full-year 2013 net sales to be approximately
$4.8 billion, narrowed from a prior guidance range of
$4.8 billion to $5.0 billion, and full-year 2013 Adjusted EBITDA
to be approximately $580 million, narrowed from a prior guidance
range of $580 million to $610 million,” said John Fowler,
Quad/Graphics executive vice president and CFO.