Quad/Graphics closing two out-of-state plants

By Katherine Michalets - Freeman Staff

Nov. 5, 2015

SUSSEX - A day after announcing a $100 million cost reduction plan, Quad/Graphics CEO Joel Quadracci identified in a conference call that the company would close plants in Augusta, Ga., and East Greenville, Pa. this year.

According to the company’s earnings report Tuesday, net sales were $1.2 billion during the third quarter, a decline of 6.5 percent compared with the same period in 2014. In addition, sales were down 2.8 percent for a total of $3.3 billion for the first nine months of 2015 when compared with the same period last year.

On Tuesday, 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.

During the conference call Wednesday morning, Quadracci said work will be consolidated into facilities where the company can achieve the greatest efficiencies.

The pending closures of two other plants in Colorado and Connecticut were previously announced.

Quadracci said his company takes “great care in the well-being of displaced workers” and will work with them to see if they can be transferred to other facilities where more skilled labor is needed.

Also part of the cost-reduction program will be an increased focus on productivity, reducing costs and implementing a new streamlined organizational structure.

“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 in a statement Tuesday.

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 out-of-state facilities.

Quad/Graphics spokeswoman Claire Ho said hiring continues in Wisconsin as work is brought to the state.

“Our Wisconsin platform is among the most efficient platforms in the entire printing industry,” she said in an email Tuesday.


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