It put some of its troubles down to the continued integration of Worldcolor, and although it said the results were in line with its expectations Quad/Graphics stock price closed Wednesday at US$19.27, down from US$23.68 at opening, and is off more than 50% in the last three months.

But despite the plunging stock price and Q2 loss, chief executive and chaireman Joel Quadracci expressed optimism the year's second half would be better and noted the company's integration of Worldcolor, which it acquired last summer, should result in $225m in synergy savings by 2012, adding Quad/Graphics has already shut down nine of the 10 plants it planned to close as part of the acquisition.

Additionally it completed a $1.5bn debt refinancing that should help reduce cash interest payments by an estimated $16m to $20m annually.

Though its stock - like many others - continues to be pounded in the current Wall Street bloodbath, executives for Wisconsin-based Quad/Graphics are painting a cautiously optimistic picture of the company's prospects, even as they acknowledged the pricing pressure and overcapacity will continue to impact overall North American printing industry.

During a conference call with analysts to discuss the company's second quarter results Quadracci cited continued aggressive pricing in the North American print market as impacting results, but added, "We are better positioned to endure the price declines than most."

Quadracci and CFO John Fowler also touted the asset swap it announced last month with Montreal-based printing conglomerate Transcontinental as a reason for optimism. The deal, which should close by year end, calls for Transcontinental to gain seven of Quad/Graphics print facilities in Canada - leaving only the Vancouver printing operation still in Quad's hands-in exchange for Quad/Graphics getting all of Transcontinental's Mexico operations.

"The transaction expands our presence in Mexico, where there is a growing middle class, and population three times the size of Canada and an economic growth rate expected to be in excess of 4.5% - all characteristics considered favorable to print growth," Fowler told the analysts.

Quad/Graphics did note declines in its books segment, largely tied to the liquidation of the Borders' chain, but also due to changing consumer tastes away from hard cover books to soft cover titles. But Quadracci stressed, "Books account of only 7% of revenue over the past 12 months."