Hartford, WI 53027
Tel: (262) 673-1000
Sales: $250 million (Ink World estimate).
Major Products: Offset, gravure, inkjet and specialty inks.
Key Personnel: Joel Quadracci, chairman, president and CEO of Quad/Graphics; Tom Frankowski, COO; Dave Honan, EVP and CFO; Darren Robarge, SVP of manufacturing; Renee Badura, EVP of sales and marketing; Jim Mercier, executive director of CR\T; Sunil Rao, technical director, CR\T.
Number of Employees: More than 25,000 worldwide; approximately 150 in CR\T. (Ink World estimate)
Operating Facilities: Hartford, WI; Lomira, WI; Oklahoma City, OK; Martinsburg, WV; Greenfield, IA; Wyszków, Poland.
Comments: A leading marketing solutions provider, Quad/Graphics has been actively transforming its business, from being primarily a publication printing operation to making headway into the creative field.
Headquartered in Sussex, WI, Quad/Graphics had a solid year overall in 2019. Quad’s net sales were $3.9 billion in 2019 as compared to $4 billion in 2018, down 1.6%. The results reflect new sales generated from the company’s Quad 3.0 growth strategy, offset by ongoing print industry volume and pricing pressures. Integrated services revenue now accounts for approximately 20% of net sales.
“In 2020, we will continue to make prudent, long-term decisions as we accelerate the transformation of our company as a marketing solutions partner with a strong foundation in print,” Quadracci continued. “This transformation, which we call Quad 3.0, is focused on counteracting ongoing print industry volume declines in order to reposition the business toward growth. During 2019, this strategy led to $225 million of organic incremental sales growth, helping to significantly offset print sales decline. Our ultimate goal is to completely offset the organic sales decline through the growth of our higher-margin marketing solutions, which drive revenue across all our products and services.”
Free cash flow, excluding $61 million in payments from the terminated LSC Communications acquisition, was $106 million in 2019, as compared to $164 million in 2018.
“In fiscal 2020, we remain disciplined in our efforts to manage our costs, and drive earnings and free cash flow growth to reduce our leverage and further strengthen our balance sheet,” Dave Honan, EVP and CFO, said. “In line with these goals, we have doubled our previously announced $50 million cost reduction program to $100 million, which we expect to fully realize in 2020.”
Quad/Graphics uses 250 million pounds of ink annually, according to a Feb. 20, 2018 report by BizTimes, and purchases 10 million pounds of pigment annually. Chemical Research/Technology (CR/T), Quad/Graphics’s ink manufacturing subsidiary, supplies the vast majority of offset, gravure, inkjet and security inks to Quad’s printing plants, and does not sell inks outside of Quad.