Transcontinental Inc. announces its results for the second quarter of fiscal 2020
Revenues decreased by $142.3 million, or 18.5%, from $767.4 million in the second quarter of 2019 to $625.1 million in the corresponding period of 2020. This decrease is largely due to the impact of the disposal of our paper packaging operations ($70.8 million), which were sold at the end of the first quarter of 2020, and a decrease in volume in the Printing Sector, mostly due to the impact of the COVID-19 pandemic in April 2020. The sale of the specialty media assets and event planning activities also contributed to this decrease. The organic decline in the Packaging Sector of $7.0 million, or 1.7%, is mainly due to the decrease in raw material costs. Operating earnings increased by $1.0 million, or 2.3%, from $43.1 million in the second quarter of 2019 to $44.1 in the second quarter of 2020 following a decrease in restructuring and other costs. Adjusted operating earnings decreased by $15.1 million, or 18.1 %, from $83.6 million in the second quarter of 2019 to $68.5 million in the second quarter of 2020. This decrease is mostly attributable to lower revenues in the Printing Sector. In addition to cost reduction measures related to COVID-19, the operational efficiency initiatives introduced early in the fiscal year helped to mitigate this decline. The Printing Sector's adjusted operating earnings margin decreased from 16.6% in the second quarter of 2019 to 14.9% in the second quarter of 2020. Net earnings attributable to shareholders of the Corporation increased by $3.4 million, or 15.2%, from $22.3 million in the second quarter of 2019 to $25.7 million in the second quarter of 2020. This increase is mainly attributable to the stability of operating earnings combined with the decrease in net financial expenses resulting from a reduction in net indebtedness during the year.