Future Milwaukee

Quad/Graphics plans to close plants, cut $100M in costs

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“Our third quarter financial performance was challenging and below our expectations,” Joel Quadracci, CEO of the commercial printing firm, said in a statement.

Quadracci said the company would move swiftly to slice costs and bring them in line with sales.

Quad did not say how many jobs it might cut, or identify any plants for closing. However, spokeswoman Claire Ho suggested that the firm’s operations in Wisconsin, where it employs 7,000 people at 14 facilities, are not high on the target list for closures.

Quad continues to move work to its most efficient printing and distribution plants, and the Wisconsin operations are “among the most efficient platforms in the entire printing industry,” Ho said in an email. She said Quad is still hiring in Wisconsin.

The company, the biggest printer of magazines and catalogs in North America, operates 57 printing plants in the U.S. and another eight outside the country. It employs 24,000 people worldwide.

However, like other printers, it has seen demand dampened by the rise of the Internet and digital technologies such as iPads and other tablets.

In its annual report filed with securities regulators last March, Quad noted that prices for printing had “declined significantly in recent years.”

Tuesday, Quadracci said in his statement that pricing pressure accelerated during the three months that ended Sept. 30, while Quad’s manufacturing productivity declined.

The firm’s sales for the three months ended Sept. 30 totaled $1.16 billion, down 6.5% from the $1.24 billion in third-quarter 2014 revenue.

The company booked a loss of $552.2 million, or $11.50 a share, in the quarter. But that stemmed almost entirely from a $532.6 million non-cash, after-tax charge Quad recorded for “goodwill impairment” triggered by the decline in the firm’s stock price.

Before Tuesday’s announcement, Quad’s stock closed at $13.10, down 18 cents.

The company went public in July 2010 at $49. Its shares traded above $40 for almost a year, then plunged. They rebounded above $30 in 2013, but have trended downward for the last two years.

The slide in the stock notwithstanding, Quad generates enough cash to pay a hefty dividend — at least at the prices of the last two years. The current dividend of $1.20 a year amounts to roughly 9% of Tuesday’s closing price.

Quad on Tuesday declared another 30-cent quarterly dividend.

The company also reduced its 2015 revenue estimates by about $200 million. Previously, Quad had estimated sales of $4.8 billion to $4.9 billion for the year. The firm now expects $4.6 billion to $4.7 billion in revenue.

Since 2009, Quad has more than doubled its revenue, in large measure through acquisitions.

Quadracci may disclose details of the company’s cutback plans this morning during a conference call with analysts.

About Rick Romell

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Rick Romell covers retail and general business news.

Quad/Graphics is an American printing company, based in Sussex, Wisconsin. It was founded on July 13, 1971, by Harry V. Quadracci, son of Harry R. Quadracci.
Headquarters: Sussex, WI
Company Website: qg.com
CEO: Joel Quadracci
Founded: 1971
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Urban Ecology Center- Riverside Park

Image I am always amazed when I find new and exciting places to visit here in Milwaukee Wisconsin, and Urban Ecology Center’s Riverside Park is one of those places. Made of 76% recycled material, the Urban Ecology Center “Green” building boast that it using rain water for all restroom purposes and is not connected to the Lake Michigan water filtration system, saving thousands of dollars a year. On the roof are solar panels that produce enough energy to sustain it for the summer months and get a rebate from Wisconsin Electric Energies (WE Energies). The hardwood maple floor is over 100 years old and was donated after the demolition of a nearby elementary school gym. The wraparound porch is made entirely of wood scraps of trees from Africa from the construction of the Atlantic City Boardwalk. Although the building is amazing, the best feature of the Urban Ecology Center is its people.

Led by the unassuming Executive Director, Ken Leinbach, the Urban Ecology Center has grown year after year as one of the key organizations designed to connect urban areas with the beauty of the outdoors. In just 10 years the organization has grown from a $50,000.00 annual budget to over $3 million dollars as of the 2011. To ensure that all of the employees of the Urban Ecology Center share the vision of the organization, they are required to go on a 3 day camping retreat with no access to technology while being immersed in nature. This helps drive the purpose of the mission and the importance of what they look to accomplish; improving the relationship between nature and the urban community while promoting green energy alternatives.

If you are interested in learning more about what the Urban Ecology Center has to offer, please visit their website at: http://urbanecologycenter.org/ for more information.