December 11, 2008 / 5:25 PM / 10 years ago

UPDATE 1-Transcontinental swings to loss on restructuring

TORONTO, Dec 11 (Reuters) - Canadian commercial printer Transcontinental (TCLa.TO)(TCLb.TO) swung to a quarterly loss on Thursday as it restructured and wrote down the value of its direct-mail business in the United States.

The company lost C$94.2 million ($77.21 million), or C$1.17 a share, in the quarter ended Oct. 31. That was down from a profit of C$38.6 million, or 46 Canadian cents a share, in the same period a year earlier.

Transcontinental said revenue rose 6 percent to C$653 million in the quarter.

Excluding restructuring costs, asset impairment and 2007 tax adjustments, income rose 22 percent to C$48 million, Transcontinental said.

It described a restructuring charge and a goodwill writedown related its direct-mail operations in the United States, which have been hurt by the financial crisis, as “mainly noncash items.”

It said net of taxes, the unusual items totalled C$141.8 million in the fourth quarter.

Last month, the Montreal-based company announced it was cutting 460 jobs and closing a direct mail plant in Pennsylvania, citing “the negative impact of current market conditions.”

The company’s shares were up 19 Canadian cents to C$11.29 on the Toronto Stock Exchange shortly after the results were released on Thursday.

$1=$1.22 Canadian Reporting by Wojtek Dabrowski; editing by Peter Galloway

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