Quebecor World Issues Profits Warning

Quebecor World has announced that earnings per share in the third and fourth quarter of 2005, before impairment of assets, restructuring and other charges, will be lower.

Quebecor World announced on 21 October 2005 that earnings per share in the third and fourth quarter of 2005, before impairment of assets, restructuring and other charges, will be lower than in the same periods last year and below current market expectations.

More specifically, Quebecor World's management team anticipates earnings per share will be in the range of $0.25-to-$0.30 for the third quarter of 2005, before impairment of assets, restructuring and other charges.

The lower results are explained by challenging market conditions, especially with regard to pricing and rising energy costs, as well as by continued underperformance of the company's operations in France and the United Kingdom.

In order to address the situation, the company is implementing a retooling program of its manufacturing platform that will improve its competitiveness and reduce its cost base.

The North American plan announced in the summer of 2004 is currently under way and on schedule.

The first group of new web offset presses, equipped with the latest technology, is currently being installed in facilities in Merced, CA, Dallas, TX, Jonesboro, AK and Versailles, KY.

This and additional state-of-the-art equipment will improve operational efficiency, make the company more competitive and better able to win and service the print requirements of the world's leading publishers and retailers.

In Europe, the company will announce a similar retooling plan in the first quarter of 2006.

The company intends to rapidly implement this plan that will improve its competitive position in Europe.

Quebecor World will release third quarter results on November 1st, 2005.

Quebecor World is one of the largest commercial printers in the world.

It is a market leader in most of its major product categories which include magazines, inserts and circulars, books, catalogues, speciality printing and direct mail, directories, digital pre-media, logistics, mail list technologies and other value-added services.

The company has approximately 34,000 employees working in more than 160 printing and related facilities in the United States, Canada, Brazil, France, the United Kingdom, Belgium, Spain, Austria, Sweden, Switzerland, Finland, Chile, Argentina, Peru, Colombia, Mexico and India.

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