Quad/Graphics 2Q finishes within expectations

By Freeman Staff

August 1, 2017

SUSSEX — The second quarter finished close to Quad/Graphic Inc.’s expectations with a 3 cent increase in its diluted earnings per share and an increase in net earnings of $15 million, when compared to the same period in 2016.

According to the Tuesday announcement, during the second quarter Quad/Graphics improved to $7 million, a $15 million increase, versus an $8 million net loss in 2016, despite a 6.7 percent decrease in net sales to $963 million.

Organic sales decreased 4.8 percent during the second quarter due to ongoing industry volume and pricing pressures after excluding pass-through paper sales and foreign exchange. The organic sales decrease is consistent with Quad/Graphics’ previous guidance, according to the report.

Net earnings improved for the six months ended June 30, 2017, to $32 million, a $36 million increase, versus a $4 million net loss in 2016, despite a 5.4 percent decrease in net sales to $2 billion.

Quad/Graphics also reported it achieved year-to-date cash flow from operations of $112 million and generated $69 million of non-GAAP free cash flow, both in-line with expectations.

“Our second quarter results were in-line with our expectations and reflect our consistent, disciplined approach to improving productivity and sustainably reducing costs, which helps us remain the industry’s high-quality, low-cost producer,” said Joel Quadracci, chairman, president & CEO of Quad/Graphics, in a statement. “We continue our strategic transformation into a marketing services provider that helps brand owners market their products, services and content more efficiently and effectively. We do this by leveraging our strong print foundation in combination with our deep expertise in workflow re-engineering and optimization, content management and data-driven marketing, including personalization, across all media channels. This transformation, which we refer to as ’Quad 3.0,’ creates significant value for our clients by addressing their urgent marketing needs to improve process efficiencies and spend effectiveness.”