LSC Communications reported that second quarter revenue fell 7.7%, to $869 million, and the company had a net loss of $24 million, compared to earnings of $8 million in the second quarter of 2018. The financial report was the first full report since LSC’s purchase by Quad was called off following objections from the Department of Justice.
In explaining its second quarter performance, LSC said that after adjusting for acquisitions, dispositions, changes in foreign exchange rates, and pass-through paper sales, organic net sales decreased 4.2% from the second quarter of 2018. The decrease was largely due, LSC said, to lower volume in its magazines, catalogs, and logistics division as well as in office products, partially offset by volume growth in the book unit and price increases in office products.
“As we reduce costs, enhance our financial flexibility, and focus on initiatives designed to deepen our customer relationships, I am confident we will further strengthen our position within the industry,” Thomas J. Quinlan III, LSC Communications chairman, president, and CEO, said in a statement.
As one part of its restructuring, during the quarter, LSC announced a plan to close its production facility in Torrance, Calif., and sell the land and building, which would result in net proceeds of approximately $35 million.
Since the acquisition by Quad was terminated, LSC's stock price has steadily declined. It fell below $1 per share August 1 and closed at 88 cents last night.
