"We will invest in state-of-the-art technology and locate it where it can best serve our customers," said president and chief executive Pierre Karl Pladeau.

The firm said that while European results were poor, it has no plan to "withdraw". Its European investment, of which it will reveal further details at the start of 2006, follows the re-equip of its North American sites. It expects capex in 2006 to be 198m to 226m ($350m-400m) across its global operations.

"We continue to see challenges ahead, specifically in Europe. Prices are, and will likely remain extremely competitive," said Pladeau. "To improve our results, we're going to take a two-pronged approach: invest in equipment and sell with volume."

A spokesman wouldn't comment on whether this approach would also involve new plants or acquisitions.

He also declined to comment on speculation that the firm has dropped rumoured plans to buy Polestar or build its own UK gravure plants.

The global printing giant's third-quarter revenue from continuing operations was static at 895m. Profits fell from 26.1m to 17.6m
According to Pladeau, this was due to higher energy costs, lower prices and poor performance at the firm's French operations, and lower volumes in the UK.

European sales were down from 167m in Q3 2004 to 153m, and year-to-date sales were 501m compared to 2005's figure of 521m.
Shares rose by 0.95% on the New York Stock Exchange following the news.

European operations
Austria Oberndorfer Druckerei
Belgium Helio Charleroi
Finland Helprint Quebecor
France 18 sites
Spain Five sites
Sweden Three sites
UK Quebecor World, Corby