Montreal, Quebec 4/12/01 Quebecor World held its annual general meeting today, reviewing a year in which the Company achieved record results and became the largest and best performing print media company in the world.
The year 2000 was the 12th straight year of record results for Quebecor World. In two years, revenue increased from $3.8 billion to $6.5 billion. During the same period, operating income rose 129% to reach $725 million.
In March 2001, the Company had fully repaid bank borrowings under the credit facility established in 1999 for the acquisition of World Color Press, Inc.
“We have kept our focus on integrating our business,” said Charles G. Cavell, President and CEO of Quebecor World. “We have achieved-industry leading double-digit margins. Some people thought it couldn’t be done, but we have delivered on our commitments and then some.”
Cost savings and synergies will reach $110 million by the end of 2002, double what was expected at the time of the announcement of the merger.
“By not making a single acquisition in almost two years, concentrating on the business and improving internal efficiencies, we have managed to return to our pre-acquisition capital structure,” added Mr. Cavell. “We are now in a position to continue our role as the industry’s global consolidator.”
Recently Quebecor World announced two acquisitions. In Spain, the Company purchased a controlling interest in a leading pre-media company in Madrid, Espacio y Punto. In Brazil, Quebecor World recently acquired 75% of Grafica Melhoramentos, which has annual sales of $16 million printing trade and textbooks, magazines, directories and catalogs.
The facility will be Quebecor World’s second in Latin America’s largest economy. The Company’s greenfield plant in Recife, Brazil’s fourth largest city, has already begun printing magazines for Editora Abril and will also print directories for the country’s largest directory publisher Listel.
Quebecor World is continuing to actively assess accretive acquisitions in all three continents in which it operates as it strives to expand its global footprint. As the only truly global printer, Quebecor World continues to believe that its strategy of expansion is in the best interest of its customers and its shareholders.
In 2000, Quebecor World had sales of more than $500 million from customers that buy from it on more than one continent. The Company is committed to increasing those sales as it moves forward in 2001.
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