Thursday, February 20, 2020

 


Transcontinental Inc Cl A Sv
(TSX: TCL-A.TO) Add to Watchlist
$17.15
-0.26 (-1.49%)
as of 13:11 EST

Transcontinental Q4 core earnings fall due to ongoing printing challenges

MONTREAL — Transcontinental Inc. beat expectations even though its core earnings fell in the fourth quarter due to lower revenues from ongoing challenges in its printing sector.

The Montreal-based printer and packaging company says earnings excluding proceeds from the sale of its California printing facility and other one-time items, decreased nearly 20 per cent to $69.9 million or 80 cents per share, from $87 million or 99 cents per share in the fourth quarter of 2018.

Net earnings increased to $112.3 million or $1.28 per share for the period ended Oct. 27, compared with $67 million or 67 cents per share a year earlier.

Revenues decreased 4.6 per cent to $790.9 million while adjusted revenues before the accelerated recognition of deferred revenues were $779.2 million, both compared with $829.2 million in the prior year period.

Transcontinental was expected to earn 72 cents per share in adjusted profits on $785.4 million in revenues, according to financial markets data firm Refinitiv.

For the full year, the company's revenues reached a record high and surpassed $3 billion for the first time resulting from packaging acquisitions. They increased 15.8 per cent to $3.04 billion.

Net earnings fell 22 per cent to $166.1 million from $213.4 million. Adjusted profits were $220.2 million or $2.52 per share, down from $239.4 million or $2.91 per share in 2018.

This report by The Canadian Press was first published Dec. 12, 2019.

Companies in this story: (TSX:TCL-A.TO).

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