RR Donnelley Reports Net Sales, Earnings Increases
CHICAGO—August 04, 2010—R.R. Donnelley & Sons Co. (NASDAQ: RRD) today reported second-quarter net earnings attributable to common shareholders of $88.8 million on net sales of $2.4 billion compared to net earnings attributable to $25.2 million on net sales of $2.4 billion in the second quarter of 2009.
“Our customers continue to realize the benefits that our breadth of product and service offerings brings to them. This is reflected in our strong second-quarter results, as well as in the many long-term customer contracts we have been awarded already this year,” said Thomas J. Quinlan III, RR Donnelley's President and CEO.
Quinlan added, “We begin the back half of the year with the same tempered enthusiasm that we had coming out of the first quarter. Our unique platform positions us well to continue to see positive year-over-year revenue growth for the balance of the year.”
Net sales in the quarter were $2.4 billion, up 2.2% from the second quarter of 2009, due to increased volume, partially offset by continued price pressure and a reduction in paper sales. Gross margin decreased to 24.5% in the second quarter of 2010 from 25.4% in the second quarter of 2009 due to continued price pressure and higher pension and other benefits-related expenses as well as higher incentive compensation expense, partially offset by increased volume and a higher recovery on print-related by-products.
Net sales for the U.S. Print and Related Services segment in the quarter increased 1.6% from the second quarter of 2009 to $1.8 billion primarily attributable to volume increases in logistics, educational books, direct mail and commercial print, partially offset by price declines across most products and services, as well as lower paper sales.
Net sales for the International segment in the quarter increased 4.3% from the second quarter of 2009 to $599.3 million due to increased volume in Asia, Europe and Global Turnkey Solutions, partially offset by price declines across most platforms. Foreign exchange rate movements had little impact on the year-over-year revenue comparison.