Quebecor World books US$64.2M Q3 loss; printer's revenue declines to $994M (Quebecor-World)

MONTREAL _ Insolvent printer Quebecor World Inc. (TSX:IQW) said it is making progress to exiting creditor protection even as it posted larger losses from continuing operations in the third quarter amid falling revenue.

The Montreal-based international commercial printer, reporting in U.S. dollars, said Friday it lost $63.6 million, or 35 cents per share, from continuing operations, compared with a year-ago loss of $55.3 million or 45 cents per share.

Overall net losses substantially decreased to US$64.2 million from $215 million in 2007.

Revenue declined to $993.6 million from $1.17 billion a year earlier.

``We continue to work towards our stated goal of exiting creditor protection as a strong participant in our industry,'' Quebecor World CEO Jacques Mallette said in a statement.

``In the third quarter, we made additional progress in this regard while at the same time maintaining a determined focus on customer service and improving operations through cost reductions and a comprehensive review of our administrative services.''

He said the company has worked hard to renew customers to multi-year agreements.

However, lower volumes, plant closures and the impact of the economic slowdown has hurt its EBITDA earnings. They fell to $94.2 million from $123.5 million in 2007.

The year-over-year decline in revenue reflects the sale of the company's European business in June, leaving it with 23,000 employees at 100 sites in the United States, Canada, Latin America and India.

The deadline for creditor claims is Dec. 5, and the company noted that its shares are not likely to have ``any material value'' when the process is completed.

The company has been operating under creditor protection in Canada and the U.S. since January.

It generated $4.1 million of positive free cash in the quarter and $88.7 million year-to-date compared to negative free cash during the same periods of 2007. This was achieved despite ``substantial costs'' for professional fees and other expenses related to the creditor protection process.

Quebecor World had an unrestricted cash balance of $125 million at Sept. 14, which is $41 million higher than forecast in the July 14 monitor's report to the court. It also has $105 million of restricted cash, and $375 million undrawn on a $400 million revolving loan facility.

Management said that during the quarter it ``continued to look for additional means to reduce costs to offset lower volumes due to the challenging economic environment.''

Expenses decreased 18.4 per cent, excluding the unfavourable impact of foreign exchange.

On the Toronto Stock Exchange, Quebecor World's shares lost a half cent to 6.5 cents, a drop of 7.14 per cent.

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