Quebecor World Moves Toward Recovery
-- Graphic Arts Online, 4/1/2009 3:21:00 AM
Quebecor World is on the mend, with Canadian Press reporting the printer told a U.S. bankruptcy court judge it expects to present a restructuring plan in April and exit protection in early July. The printing firm trimmed Q4 losses to $654 million from $1.8 billion in the prior year due to cost cutting measures. For the full, year losses narrowed to $1.66 billion compared to $2.2 billion in 2007. Investors are happy with the firm’s efforts and the value of the printer’s stock jumped 200% Monday.
The company said it cut 12% of its workforce in 2008 and froze salaries of non-union North American employees. The company also suspended its pension contributions to non-union U.S. employees and reduced senior management salaries by 5%. CEO Jacques Mallette, who took over about month before the company sought court protection in January 2008, earned $1.9 million last year, including a $1.4 million bonus. Mallette's predecessor, Wes Lucas, earned $1.18 million in 2007 but received no bonus; Lucas is suing the company for $23 million.
Major overhead cost reduction programs have also been launched, the company says. Selling, general and administrative expenses dropped 10.8% in the quarter as a result.
Investments in technology also gave the company a boost as the Montreal-based firm expanded its Integrated Multichannel Solutions and added two new 30-pocket machines in the recently opened Somerset, NJ mail consolidation facility. The additional co-mail capacity offers customers the opportunity to reduce postage costs.
Quebecor World has also made advanced environmental and productivity initiatives. Last year operations in Latin America completed a 19 projects and initiated 18 others under a Six Sigma program. Across its U.S. plants it established triple chain of custody certification (SFI, FSC and PEFC) for paper usage. The company says the majority of the heatset inks used to produce the body of publications by Quebecor World contain a minimum of 20%, by weight, of renewable resources, including derivatives of pine trees and vegetable oils.
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