Valassis Posts 3Q Net Income On Lower Costs

PHILADELPHIA (AP) — Coupon-clipping by consumers and lower costs propelled Valassis Communications Inc. to a profit in the third quarter, the company said Thursday.

Valassis, based in Livonia, Mich., is a marketing company that provides direct mail and coupons. Its shares rebounded $2.96, or 17.8 percent, to $19.87 in afternoon trading. In the week leading up to its quarterly report, Valassis shares were down about 16 percent.

Benchmark Co. analyst Ed Atorino called the company's quarter "rather impressive."

"They're turning the corner," he said. "People were still very happy with what they did."

The company reported net income of $13.8 million, or 28 cents per share, compared with a loss of $5.2 million, or 11 cents per share, in the same quarter a year ago. Earnings for the latest quarter included a charge of 4 cents per share related to interest rate swap contracts.

Revenue fell 3.5 percent to $544.1 million.

Analysts forecast income of 30 cents per share and revenue of $540.3 million, according to a Thomson Reuters survey.