June 12, 2008 / 3:54 PM / 10 years ago

UPDATE 1-Transcontinental profit higher on tech investments

(Adds details)

OTTAWA, June 12 (Reuters) - Commercial printer Transcontinental Inc (TCLa.TO) (TCLb.TO) reported an 11 percent gain in second-quarter profit on Thursday as acquisitions and investments in new technologies more than offset the negative impact of Canadian dollar appreciation.

The company said it earned C$37.7 million ($36.9 million), or 46 Canadian cents a share, in the three months ended April 30. That is up from a profit of C$34 million, or 40 Canadian cents a share, in the same period last year.

Analysts had expected a profit of 43 Canadian cents a share before exceptions, according to Reuters Estimates.

Revenue rose 2 percent to C$595.1 million.

Exchange rate fluctuations between the Canadian dollar and its U.S. and Mexican counterparts had a C$19.3 million negative impact on revenue and C$6.5 million effect on adjusted operating income before amortization.

Excluding that impact, Transcontinental said revenue and adjusted operating income before amortization rose 5 percent.

The negative impact of the foreign exchange rate should diminish over the course of the fiscal year unless there is a sudden rise in the Canadian dollar, the Montreal-based company said.

The Canadian printing industry has been roiled by a strong dollar, the slowing North American economy, and the growth of the Internet. Transcontinental rival Quebecor World Inc filed for court protection from creditors in January. ($1=$1.02 Canadian) (Reporting by Susan Taylor; Editing by Peter Galloway)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below