Quad/Graphics to Reduce Production Capacity Across Manufacturing Platform

SUSSEX, Wis., Jan. 12 /PRNewswire/ -- Quad/Graphics -- the nation's third
largest commercial printer -- announces that it will reduce its production
capacity to better match print demand, which has softened due to changes in
the economy.
Specifically, the company will shut down the equivalent of one plant's
worth of capacity immediately. This move will result in the elimination of
approximately 550 jobs in 5 states, or approximately 5.6% of its domestic
workforce.
"This is a strategic move, made from a position of financial and industry
strength," said Joel Quadracci, Quad/Graphics' President and Chief Executive
Officer. "Quad/Graphics continues to have industry-leading profit margins, and
because we have maintained our investment grade credit quality, we have plenty
of access to capital markets that will ensure our strong position within the
industry for a long time."
Mr. Quadracci noted that the printing industry, like every industry, is
facing unprecedented challenges right now. "From consumer spending to housing
and everywhere in-between, the world needs to go through a capacity reset.
There is simply too much of everything chasing too little demand," he said.
"The printing industry is no different. There needs to be an industry-wide
reduction in capacity. While I had hoped to see some better indicators as we
entered the New Year, it's clear that this economic downturn is going to be
much longer and more severe than we expected, and so we are taking appropriate
and prudent steps to reset our own capacity," he continued. "The unfortunate
consequence of this decision is that we will have to eliminate jobs."
The company's capacity reduction will take place immediately and include
equipment shutdowns at 9 printing plants nationwide. The job cuts will affect
both production and administrative positions, and will be completed this week.
Mr. Quadracci emphasized that the capacity reduction would not impact the
work it does for its customers, as it is removing redundant capacity
throughout its network of plants. "Our clients will continue to experience the
very same high level of quality, turnaround times and overall service to which
they have become accustomed," he said.
About Quad/Graphics
Quad/Graphics (http://www.QG.com) is the largest privately held printer of
magazines, catalogs and other commercial products in the Western Hemisphere,
and the third-largest printer -- public or private -- in the nation.
Headquartered in Sussex, Wisconsin (26 miles west of Milwaukee), the company
provides services ranging from front-end design and photography through
digital imaging, printing, finishing, mailing/distribution, and data-driven
marketing solutions such as data optimization and analytics. Annual sales are
$2.2 billion. Domestic employment is approximately 9,800.
SOURCE Quad/Graphics

Claire Ho of Quad|Graphics, +1-414-566-2955