Daughter Isabelle Marcoux to take on role
Canadian media giant Transcontinental says its co-founder Remi Marcoux will pass the torch as board chairman to his daughter early next year.
The 71-year-old will remain on Transcontinental’s board but will be replaced as chairman next February by his daughter Isabelle Marcoux, who has been vice-chairwoman.
“It is with great confidence in the future of Transcontinental and with great pride in the progress achieved by a seasoned management team and experienced employees that I made this important decision,” he stated in a news release.
The announcement came Wednesday as the company’s shares took a hit after it missed expectations when net income dropped 63% in the third quarter to $10.6 million.
Shares in the Montreal-based company fell 70 cents, or 5.35 per cent, at $12.39 in midday trading on the Toronto Stock Exchange.
The company said its net profits plummeted due to the discontinuance of its Mexican printing operations, which are about to be transferred to Quad/Graphics.
The media and printing company said it earned 13 cents per share for the period ended July 31, down from 36 cents a year earlier when profits totalled $28.9 million.
Excluding unusual items and discontinued operations, adjusted net income decreased two per cent to $32.8 million or 40 cents per share. That compared to $33.4 million or 41 cents per share in the prior period.
Transcontinental was expected to earn 44 cents per share in adjusted income on $511 million of revenue in the third quarter, according to analysts polled by Thomson Reuters.
Revenues grew by two per cent to $492.7 million from $481.3 million a year ago.
The increase was primarily due to a number of new contracts, particularly the expanded relationship with The Globe and Mail.
Excluding acquisitions, divestitures and closures, organic revenues increased two per cent, driven mainly by the printing sector.
“I am satisfied with our third quarter results, especially with the fact that we have generated organic revenue and profit growth for the sixth consecutive quarter in an industry that faces increasing competition,” CEO Francois Olivier stated.
He said the company is strengthening its existing assets by making strategic acquisitions, divesting less core businesses and rationalizing certain activities.
“We also developed our offering of products and services on the digital side by expanding our digital advertising representation relationships as well as mobile partnerships,” he added.
