Donnelley Reports Sales Growth, Announces $1 Billion Share Repurchase
CHICAGO—May 4, 2011—R.R. Donnelley & Sons reported first-quarter net earnings attributable to common shareholders of $33.9 million on net sales of $2.6 billion compared to $52.6 million on net sales of $2.4 billion in the first quarter of 2010. The first-quarter net earnings attributable to common shareholders included pre-tax charges for restructuring ($42.7 million) and impairment ($8.1 million, non-cash) and acquisition-related costs ($0.4 million) totaling $51.2 million in 2011 compared to charges for restructuring ($14.5 million) and impairment ($1.0 million, non-cash) and acquisition-related costs ($2.0 million) totaling $17.5 million in 2010.
Non-GAAP net earnings attributable to common shareholders totaled $68.6 million in the first quarter of 2011 compared to $69.5 million in the first quarter of 2010. First-quarter non-GAAP net earnings attributable to common shareholders exclude restructuring and impairment charges and acquisition expenses for both years.
“First-quarter results were in line with our expectations. We overcame both the absence of last year’s U.S. Census project and this year’s incremental expenses associated with the acquisition of Bowne and begin the second quarter building positive momentum,” said Thomas J. Quinlan III, RR Donnelley’s president and CEO. “The integration of Bowne is progressing well and we expect the acquisition to be accretive in 2011. We remain on track to deliver full-year revenue, margin and cash flow consistent with our previous guidance.”
Net sales in the quarter were $2.6 billion, up 7.0 percent from the first quarter of 2010, including increased sales related to the acquisition of Bowne and a $15.4 million favorable impact of changes in foreign exchange rates. Pro forma for acquisitions, net sales decreased 0.4 percent, reflecting the non-recurring revenue related to the U.S. Census project, the majority of which was recognized in the first quarter of 2010, and continued pricing pressure, partially offset by volume growth.