Quad/Graphics recovers from loss

Impairment charges decline as transformation winds down

Quad/Graphics' Sussex headquarters.

Sussex based Quad/Graphics Inc. recovered from its year-ago loss in the second quarter.

Quad/Graphics’ Sussex headquarters.

The commercial printing firm reported net income of $6.7 million, or 13 cents per diluted share, compared with a net loss of $7.7 million, or 16 cents lost per share, in the second quarter of 2016.

Operating income was $32.7 million, up from $13.3 million in the year-ago quarter.

Revenue totaled $963.2 million, down from $1 billion in the second quarter of 2016. Organic sales declined 4.8 percent due to ongoing industry volume pricing pressures.

During the quarter, Quad reported $5.3 million in restructuring, impairment and transaction-related charges, down from $7.4 million in the same period a year ago. Those costs mainly went to employee termination charges in the most recent quarter.

Since 2010, Quad has made a number of acquisitions to consolidate the printing industry and has sought to bring production to high efficiency plants while closing outdated ones. Quad has closed 34 printing plants during that time and reduced its overall headcount by 10,000. It has also repositioned itself as a marketing services provider.

“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 and chief executive officer of Quad/Graphics. “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.”

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Molly Dill, former BizTimes Milwaukee managing editor.

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