Transcontinental helped by tax adjustment but Q4 adjusted earnings fall

MONTREAL – Transcontinental Inc. says unusual items and reduced restructuring expenses boosted its fourth-quarter net profit to $100.2 million, from $9 million a year earlier.

Among other things, the Montreal-based printing and publishing company (TSX:TCL.A) received a favourable tax adjustment in the United States.

Excluding a $51.7-million tax adjustment in the fourth quarter, and other items in both years, Transcontinental’s adjusted profit was $60.6 milion, down 4.7 per cent from $63.6 million in the fourth quarter of fiscal 2014.

Transcontinental’s revenue for the three-month period declined 1.5 per cent to $540.1 million from $548.2 million.

The company says its printed flyer business is stable and the acquisition of a specialty packaging company but that revenue from the printing and media sectors declined amid changes in the market.

The profit amounted to $1.28 per participating share, or 78 cents after adjustments. That compared with 12 cents per share before adjustments, or 81 cents after adjustments, in the fourth quarter of 2014