Transcontinental posts lower Q4 profit

Thu Dec 8, 2011 1:54pm EST
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(Reuters) - Transcontinental Inc (TCLa.TO: Quote), Canada's biggest commercial printer, reported a lower quarterly profit hurt by lower printing volumes and a goodwill impairment charge.

For the fourth quarter, net income applicable to participating shares fell 82 percent to C$8.0 million, or 10 Canadian cents a share, from C$44.5 million, or 55 Canadian cents a share, a year ago.

The company, which started printing Canada's leading daily The Globe and Mail since October last year in a contract worth C$1.7 billion, also recorded a goodwill impairment charge of C$52.2 million.

Adjusted net income applicable to participating shares fell 4 percent to 74 Canadian cents per share.

Analysts were expecting earnings of 63 Canadian cents a share, according to Thomson Reuters I/B/E/S.

Revenue for the quarter fell 3.4 percent to C$537.5 million.

Shares of Transcontinental were trading down 1.7 percent to C$11.46 in afternoon trade on Thursday on the Toronto Stock Exchange.

(Reporting by Maneesha Tiwari in Bangalore; Editing by Esha Dey)