"Complex social regulations" like the 35-hour working week had also led to higher labour costs and were "inhibiting" its ability to redress the situation, it added.
But Quebecor is developing an action plan that will result in "further cost-containment measures".
However, the rest of the Canadian group’s European operations performed well in the first half of 2002. Total European revenue was up 2% to £288m ($450.8m), although operating margins fell from 6.6% to 3%.
Latin America was again a star performer with sales up 27% and operating income rising 16%.
Total group revenue for the first half was down 6.5% to £1.85bn, but net income rose 4% to £70.4m.
Quebecor attributed the fall in revenue to lower demand for print advertising and pricing pressure caused by overcapacity. However, it said that its acquisitions of Retail Printing Company in the US and the printing and binding assets of Hachette in Europe had offset much of the decline.
President and chief executive Charles Cavell said Quebecor’s consolidation of plants and strict cost containment had been "the right recipe for our business at this time".
"The steps we have taken to strengthen our business are permanent improvements and this will enhance our ability to be able to capture the upside benefits when the market improves," he added.
Story by Gordon Carson
