Transcontinental Modifies Operating Structure to Reflect Evolving Marketplace
Press release from the issuing company
Montreal, September 24, 2002 - Transcontinental Group today announced a modification of its operating structure that will position the company to better respond to the evolving needs of its customers and the marketplace. Effective November 1st, 2002, the company will consist of three operating sectors: Transcontinental Printing - Information Products, Transcontinental Printing - Marketing Products, and Transcontinental Media.
"At Transcontinental, we're continuously looking for ways to improve both our relationship with customers and our product and service offering," said Luc Desjardins, President and Chief Operating Officer of Transcontinental Group. "The changes we are introducing today will allow us to do just that.
"The Corporation has enjoyed excellent results over the past few years. This new structure will allow us to improve on that success and better our business," continued Mr. Desjardins. "These changes will help us reach the objectives of our Horizon 2005 project, a vast mobilization movement aimed at rethinking our ways of doing things, our processes and our attitudes in order to continue creating value for our employees, our customers, and our shareholders. The project's main financial objective is to reach revenues of $3 billion in 2005, coupled with a proportional increase in earnings per share.
"By reorganizing our operating sectors, we are improving our ability to develop and optimize our printing, publishing, distribution and related capabilities, the Corporation's major driving forces," added Mr. Desjardins. "The new structure will place us in a better position to deliver superior, value-added products and services for North American publishers and commercial customers in order to help them reach their targeted audiences more effectively."
Transcontinental Printing - Information Products will regroup the Corporation's printing services for publishers. These include newspaper, magazine, directory and book printing activities. The sector will also include Transcontinental's Mexican operations. This grouping will allow Transcontinental to further specialize its printing plants, continue the development these niches that are key to its growth strategy, and better focus its efforts with regards to publishing customers who demand specific products.
Transcontinental Printing - Marketing Products will regroup Transcontinental's printing services for commercial customers (retailers, advertising agencies, financial institutions, and corporations). These products include flyers and inserts, direct marketing material, catalogues, brochures, financial documents, posters, and specialized packaging. It also includes strategic services such as database management, digital prepress, Internet solutions and fulfillment. This grouping will enable the Corporation to further differentiate its offering, increasing opportunities to sell its full line of products and services to commercial customers, who are increasingly demanding an integrated approach from suppliers. It will also facilitate the sharing of market knowledge between units and should allow the Corporation to capture a larger portion of the fast-growing direct marketing segment.
Finally, Transcontinental Media, which remains unchanged, regroups the Corporation's publishing and distribution activities through which advertisers reach consumers directly. A pan-Canadian provider of targeted consumer content that serves national and local advertisers in both French and English, Transcontinental Media offers advertisers privileged access to fast-growing segments which include consumer information, business and personal finance, leisure, technology and geographic communities. This grouping allows Transcontinental to maximize its core competencies in content production and distribution.
Serge Bragdon, currently President of the Interactive Marketing sector, will become President of Transcontinental Printing - Information Products, while André Préfontaine will remain as President of Transcontinental Media. The process of finding a President for Transcontinental Printing - Marketing Products is currently under way.
Transcontinental Group is one of the ten largest commercial printers in North America and a leader in Canada in most of its niches. It is also Canada's leading publisher of consumer magazines and the country's second-largest publisher of community newspapers. In addition, the Corporation is engaged in direct marketing and the door-to-door distribution of advertising material. Transcontinental has over 12,000 employees in Canada, the United States and Mexico, and posted revenues of $1.8 billion in 2001.
Transcontinental Group is a Canadian company whose Class A Subordinate Voting Shares and Class B Shares are listed on the Toronto Stock Exchange under the symbols GRT.A and GRT.B.
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