- 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
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.
looks to cut costs as sales fall
<<EARLIER: Quad/Graphics envisions future growth