TORONTO (Reuters) - Commercial printer Transcontinental Inc (TCLa.TO)(TCLb.TO) posted a higher quarterly profit on Thursday as recent acquisitions and organic growth combined to overcome the negative effects of foreign exchange rates.
The company, Canada’s largest printer, said it earned C$30.3 million ($28 million), or 37 Canadian cents a share, in the three months ended July 31. That was up from a profit of C$27.8 million, or 33 Canadian cents a share, in the same period a year earlier.
Montreal-based Transcontinental said its purchase of printing and direct-marketing products firm PLM Group as well as other smaller acquisitions in 2007 and 2008, helped results.
The company added that a strong performance in its newspaper, advertising-bag, flyer and book-printing operations, also helped during the quarter.
It also clamped down on costs, which further helped offset the negative effects of foreign exchange and “the backlash of the U.S. credit crunch on the corporation’s direct mail operations,” it said.
Revenue in the quarter rose to C$584.9 million from C$551.1 million a year earlier. Rate fluctuations between the Canadian dollar and the U.S. and Mexican currencies hurt revenue by C$9.3 million, it said.
Transcontinental’s class A shares were down 10 Canadian cents at C$14.35 on the Toronto Stock Exchange shortly after the results were published.
Reporting by Wojtek Dabrowski; editing by Peter Galloway