The US-based company exceeded its own $30-40m loss warning, issued in April, by more than 40% as it swung from a $60.2m operating income for the year ended 31 December 2007 to a $56.6m operating loss in 2008.
The company, which anticipates a 9% drop in net sales to $494.2m, revealed that retail and entertainment clients, representing a combined 34% of revenue, had declined 15%, whilst packaging clients, representing 64% of turnover, declined 7%.
President and chief executive David Schawk said: "It is clear that the difficulties that consumer products companies and retailers faced during 2008 resulted in significant challenges for Schawk as well.
"However, as we have done in the past, Schawk used this challenge as an opportunity to aggressively improve our internal structure, processes and controls, all of which we expect will have a positive long-term benefit."
Schawk added that the company had made "significant progress" in revising its debt agreements, following its default warning last month, although he could give no specific timing for the resolution of ongoing negotiations amongst lenders concerning "inter-creditor issues".
Schawk posts deeper loss, continues talks over debt agreements
Schawk, the global packaging pre-press specialist, has posted an operating loss of $56.6m (37.4m) in its preliminary full-year results as it continued to renegotiate its debt agreements.
