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RR Donnelley Reports Gains, Largely Due to Bowne Acquisition

November 2, 2011

The segment’s operating income, which was negatively impacted by charges for restructuring and impairment of $28.1 million in the third quarter of 2011 and $18.5 million in the third quarter of 2010, improved to $169.3 million in the third quarter of 2011—up from $168.3 million in the third quarter of 2010.

Net sales for the International segment increased 12.3 percent from the third quarter of 2010 to $703.9 million, including increased sales due to the acquisition of Bowne. Pro forma for acquisitions, net sales grew by $49.2 million, or 7.5 percent, as changes in foreign exchange rates ($26.8 million or 409 basis points) and increased volume more than offset the impact of continued pricing pressure.

The segment’s operating income, which was negatively impacted by charges for restructuring of $4.6 million in the third quarter of 2011 and charges for restructuring and impairment of $29.6 million in the third quarter of 2010, improved to $36.7 million in the third quarter of 2011—up from $23.5 million in the third quarter of 2010.

Excluding the restructuring and impairment charges, the segment’s non-GAAP operating margin declined to 5.9 percent in the third quarter of 2011 from 8.5 percent in the third quarter of 2010 as pricing pressure, an unfavorable impact from changes in foreign exchange rates (primarily due to export sales from certain operations) as well as wage and other inflation in certain countries were only partially offset by lower variable compensation expense.

About RR Donnelley
RR Donnelley (Nasdaq:RRD) is a global provider of integrated communications. Founded more than 147 years ago, the company works collaboratively with more than 60,000 customers worldwide to develop custom communications solutions that reduce costs, enhance ROI and ensure compliance. Drawing on a range of proprietary and commercially available digital and conventional technologies deployed across four continents, the company employs a suite of leading Internet-based capabilities and other resources to provide premedia, printing, logistics and business process outsourcing products and services to leading clients in virtually every private and public sector.

Source: RRD.

 

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