Printing giant Quad said in remarks accompanying its third quarter financial results that it will sell its book business as part of its efforts to overhaul the company.
Quad chairman and CEO Joel Quadracci said the sale of the book group is in keeping with the company’s strategy of shedding non-core assets. “We have made the strategic decision to divest our book business, which follows our recent sale of our non-core industrial wood crating business, Transpak," he said in a statement.
In addition to divesting non-core assets, Quad plans to cut annual costs by about $50 million. “We are making bold decisions to accelerate our transformation through investments in our business that will drive long-term growth and shareholder value and provide us with the ability to take advantage of opportunities in the rapidly changing print industry,” Quadracci said
For the third quarter ended September 30, 2019, revenue fell 3.1%, to $943.6 million, compared to a year ago. The company posted a net loss of $126.4 million in the quarter, compared to earnings of $22.5 million in the third quarter of 2018.
Correction: This story has been updated to correct the mistaken report that Quad owns Dover, Creative Homeowner, and REA. The companies are owned by LSC Communications.