Sussex-based Quad/Graphics Inc. improved net income in the third quarter, despite lower sales as industry volume and pricing pressures continued.
The company reported $11.3 million in net income for the quarter, up from a $552.2 million loss last year when the company recorded a $775 million goodwill impairment charge.
In addition to not having the charge, the company credited better operating performance from increased manufacturing productivity and labor management along with cost reductions.
Adjusted EBITDA for the quarter was $122 million, a $2 million increase from the previous year.
Revenue for the quarter was $1.1 billion, a 7 percent drop from the previous year. Sales were down 4.6 percent organically as acquisitions provided a benefit of 1 percent and foreign currency and pass through paper sales hurt revenue 0.5 and 2.9 percent respectively.
“Because industry pressures continue to impact our top line, our team remains diligent and proactive in matching costs to revenue with the goal of being the low-cost producer while also listening to clients and innovating solutions to position the company for long-term growth,” said Joel Quadracci, Quad/Graphics chairman president and chief executive officer.
Company executives are scheduled to discuss the results in more detail during an earnings call Wednesday.
