Roller Coaster Ride for RR Donnelley
CHICAGO—RR Donnelley absorbed another loss in its quarterly results, recording a net loss of $686.9 million in the fourth quarter. Impairment and restructuring charges, which totaled nearly $1.4 billion, were the primary culprits. For the same period in 2007, RR Donnelley registered a net loss of $292.9 million, with restructuring and impairment charges of $477 million.
In other company news, the printer will close the former Spencer Press in Wells, ME, and its Hillside, IL, facility, as it continues to deal with the dismal economy. A total of 488 jobs will be lost, including 370 at Spencer Press, a catalog and direct marketing printer. The Spencer plant will close by mid-June, with staggered layoffs. Employees at both facilities will receive severance packages.
On the contract front, RR Donnelley has been awarded a $500 million, multi-year pact by Publishing Group of America for all of its magazine titles. The printer was also awarded a $175 million, multi-year accord to provide 100 percent of the catalog printing and postal logistics services for Orchard Brands.
In addition, it has opened a new Financial Services office in Calgary, Alberta, to serve businesses and law firms in Western Canada.