Bankruptcy Results in Big Loss for Quebecor

-- Publishers Weekly, 4/29/2008 10:20:00 AM

Printing giant Quebecor World released its delayed financial results for 2007 this morning and as expected the company took a big hit due to its January bankruptcy filing. Quebecor recorded a net loss from continuing operations of $2.20 billion compared to earnings of $30.6 million in 2006. Revenue in the year fell 6.5%, to $5.69 billion. Charges associated with the bankruptcy, including goodwill impairment charges, impairment of assets, and restructuring and other charges amounted to $2.1 billion. In addition to the charges, Quebecor said profitability was depressed by lower volume, pricing pressure, underperformaning European assets (which Quebecor is trying to sell) and higher expenses. The decline in revenue was attributed in part to the closing of several older plants in North America.

In a statement, CEO Jacques Mallette said the company has made good progress in restructuring its operations. “I am pleased with what we have accomplished so far,” Mallett said. To finance its operation during the bankruptcy proceedings, Quebecor received $1 billion of debtor-in-possession financing earlier this year, and the company said it believes it has enough cash to operate until it emerges from bankruptcy.

To help with its restructuring efforts, Quebecor has hired Randy Benson as chief restructuring officer. Benson has worked with other large companies in bankruptcy, including Hollinger and Ivaco.