Quad/Graphics (QUAD) Cuts Dividends and Lowers Sales Guidance
On October 29, 2019, Quad/Graphics announced to shareholders that the Company was cutting dividend payments in half to $0.15 per share due to declining net sales. In addition, Quad/Graphics disclosed plans to divest its book business, which produces $200 million in annual sales, due to “weakening market prices for paper byproduct recovery and the timing of productivity improvements from wage increases” to reflect the upcoming divestiture of its book business, the Company decreased its 2019 sales guidance from the previous range of $4.05 – $4.25 billion to $3.9 billion. On this news, the following day Quad/Graphics’s share price fell $6.42 per share, or approximately 57%, to close at $4.85 and has yet to recover.
