Donnelley Reports Mixed, Largely Flat Financial Results

The segment’s operating income increased to $168.3 million in the third quarter of 2010 from $164.9 million in the third quarter of 2009 (factoring in the negative impact of charges for restructuring and impairment of $18.5 million in the third quarter of 2010 and $3.6 million in the third quarter of 2009).

Excluding the restructuring and impairment charges, the segment’s non-GAAP operating margin increased to 10.0% in the third quarter of 2010 from 9.2% in the third quarter of 2009, as the benefits of productivity efforts, a higher recovery on print-related by-products and lower depreciation and amortization expense more than offset the impact of continued price erosion.

• Net sales for the International segment in the quarter decreased 1.8% from the third quarter of 2009 to $626.7 million, inclusive of the negative impacts of changes in foreign exchange rates (3.2%) and the fees received for the transition of a customer contract in the third quarter of 2009 (2.0%). The balance of the change in net sales was a result of increased volume in Asia, Europe and Latin America, partially offset by the lost volume related to the termination of a significant customer contract in 2009 and continued price pressure.

The segment’s operating income improved to $23.5 million in the third quarter of 2010 from a loss of $72.3 million in the third quarter of 2009 (including the negative impact of charges for restructuring and impairment of $29.6 million in the third quarter of 2010 and $127.3 million in the third quarter of 2009).

Excluding the restructuring and impairment charges, the segment’s non-GAAP operating margin decreased to 8.5% in the third quarter of 2010 from 8.6% in the third quarter of 2009 due to the fees received related to the transition of a customer contract in 2009 and the impact of continued price erosion, partially offset by increased volume.

Companies:
Related Content
Comments