By: E&P Staff The rapid rise in the Canadian dollar caused an equally precipitous fall in the fourth-quarter earnings of Montreal-based Transcontinental Inc., the big newspaper printer and publisher reported.
Transcontinental said its earnings dropped 24% to $38.6 million, or 46 cents per share, in its fourth quarter ended Oct. 31, compared with year-ago net income of $51.1 million, or 59 cents per share.
The company, which has contracted to print the San Francisco Chronicle and is looking to taking on other U.S. newspaper clients, said its earnings would have increased 8%, excluding one-time items, were it not for the strengthening loonie.
Total revenue increased 2% to $618 million, and would have been 4% excluding the currency impacts, Transcontinental said.
At the same time it made its financial report, Transcontinental CEO Luc Desjardins indicated the company was not interested in taking over all of its rival printer Quebecor World Inc.
"We always look at evaluating all opportunities in North America, but only opportunities that enhance our niche strategy," Desjardins said in a conference call. "We don't look at becoming the largest printer but the best in our niches."
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