Sussex-based Quad/Graphics Inc. reported a 75 percent increase in profit during the third quarter despite a nearly 5 percent drop in sales.
The company’s net income increased from $11.3 million to $19.8 million. Earnings improved from 16 to 38 cents per diluted share. The company credited lower depreciation and amortization along with cost reductions and productivity improvement efforts.
The improved results came as continued industry volume and pricing pressures pushed revenue down $51 million to roughly $1 billion. The 4.8 percent decrease included a 3.7 percent organic decrease, a 1.2 percent decrease from pass-through paper sales and a 0.1 percent benefit from foreign exchange.
Joel Quadracci, Quad/Graphics chairman, president and chief executive officer, said the company had developed sales momentum, highlighted by contracts with Bluestem Brands and Conde Nast. Those wins would help fuel Quad’s efforts to expand its integrated marketing services, he said.
Quadracci said the company’s efforts to go beyond just being a printer, referred to as Quad 3.0, will generate an additional $100 million in revenue in 2017 alone.
“In Quad 3.0 we are transforming into a marketing services provider that helps brand owners market their products, services and content more efficiently and effectively. This transformation creates significant value for our clients by addressing their urgent marketing needs,” Quadracci said.
