Sunday, November 19, 2006

Transcontinental to print San Francisco Chronicle

Below are a few excerpts from CBC News, the complete story can be read by clicking on the title of this post. Circulation at the San Francisco Chronicle is 432,957, or almost half of the Los Angeles Times circulation.

MONTREAL (CP) - Canadian printing giant Transcontinental Inc. (TSX:TCL.A) is expanding its American presence after winning a 15-year contract worth more than US$1 billion to print Hearst Corp.'s San Francisco Chronicle daily newspaper and related products.

[snip]

In addition to becoming one of its top five revenue-generating customers, the Hearst deal buttresses Transcontinental's strategy to convince newspapers to outsource their printing.

[snip]

"It kind of validates their long-term strategy in newspaper outsourcing and their view that this a viable source of growth for them," said Andrea Horan of Genuity Capital Markets in Toronto.

[snip]

There are no immediate plans for a similar deal with other Hearst properties, but negotiations are continuing with other newspaper owners, Desjardins said.

[snip]

"Most U.S. newspapers could save 10 to 15 per cent of costs by outsourcing. That gives you an extra point on the margins which, for an industry that's having declining margins, that's a pretty nice bump."

1 comment:

Anonymous said...

So they save money in salaries, but then they have to spend on transportation fees?
Is this right?
Just wondering.