Quebecor World Inc. announced Tuesday that it racked up an annual loss of US$2.2 billion in 2007, mostly due to a writedown of goodwill in the fourth quarter, as the troubled printing company remained under protection from its creditors.
The Montreal-based company, which reports in U.S. currency, said the fourth-quarter included a $1.8-billion charge after taxes to reflect impaired goodwill—an intangible asset that arises when one company buys another.
The non-cash charge amounted to $13.81 per share.
Overall net loss for the quarter ended Dec. 31, 2007 was also $1.8 billion or $13.87 per share compared to net income from continuing operations of $11.6 million or three cents per share in the same period last year.
Revenues of $1.5 billion for the fourth quarter compared to $1.6 billion in 2006.
For the full year, the net loss of $2.2 billion amounted to $16.85 per share, compared to a net income of $28.3 million or net loss of four cents per common share taking into account dividends on preferred shares.
Revenue for 2007 was $5.7 billion compared to $6.1 billion in 2006.
The company, a publicly traded subsidiary of Quebecor Inc., has been retooling its business for several years but ran into deep trouble with its bankers last year after a plan to sell its European operations fell through.
That setback came amid tighter credit conditions generally, due to problems emanating from the U.S. mortgage industry, and changes in the North American commercial printing business that is Quebecor World’s primary source of revenue.
The company received court protection from its creditors in January.
“The restructuring process is proceeding as planned,” Jacques Mallette, the company’s president and chief executive, said in a statement. “To date we have passed several important milestones and we are actively developing our five-year business plan, which we expect to be completed in the second quarter.”
The company also announced Tuesday that it has appointed Randy Benson as its chief restructuring officer, a post he previously held at Hollinger Inc. after the departure of Conrad Black, and at Quebec-based steelmaker Ivaco Inc.
Quebecor shares, which have plummeted from around $9 over the past five months, traded up one cent in active morning trading on the Toronto Stock Exchange Tuesday at 21 cents.
