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RR Donnelley Reports Sales Growth, Earnings Improvement

February 22, 2011
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CHICAGO—Feb. 22, 2011—R.R. Donnelley & Sons reported fourth-quarter net earnings attributable to common shareholders of $27 million on net sales of $2.7 billion, compared to a net loss attributable to common shareholders of $79.5 million on net sales of $2.6 billion in the fourth quarter of 2009.

The fourth-quarter net earnings (loss) attributable to common shareholders included pre-tax charges for restructuring ($21.5 million) and impairment ($61.5 million, non-cash) and acquisition-related costs ($5.6 million) totaling $88.6 million in 2010 compared to charges for restructuring ($17.5 million) and impairment ($131.1 million, non-cash) and acquisition-related costs ($0.1 million) totaling $148.7 million in 2009. Additional details regarding the nature of these charges are included in the attached schedules.

Non-GAAP net earnings attributable to common shareholders totaled $107.2 million in the fourth quarter of 2010, compared to $95.4 million in the fourth quarter of 2009. Fourth-quarter non-GAAP net earnings attributable to common shareholders exclude restructuring and impairment charges, acquisition expenses and the write-down of affordable housing investments for both years, as well as income tax expense related to the reorganization of entities within the International segment in 2009.

“We are pleased with our fourth-quarter results and the momentum that we built throughout the year,” said Thomas J. Quinlan III, RR Donnelley’s president and CEO.  “During 2010, we saw a significant increase in the number of customers purchasing multiple products and services from us, taking advantage of the breadth and scale that our unique platform offers. As we begin 2011, we continue to focus on achieving top-line growth through our One RR Donnelley global print management strategy, and expect the positive trends achieved in 2010 to continue throughout 2011.”

Summary   

Net sales in the quarter were $2.7 billion, up 4.8 percent from the fourth quarter of 2009, including $61.2 million related to the acquisition of Bowne and an unfavorable impact of changes in foreign exchange rates and lower pass-through paper sales of $22.7 million. 

Gross margin decreased to 23.1 percent in the fourth quarter of 2010 from 23.3 percent in the fourth quarter of 2009 due to continued price pressure and higher pension and other benefits-related expenses, partially offset by a higher recovery on print-related by-products, increased volume and lower incentive compensation expense. SG&A expense as a percentage of net sales in the fourth quarter of 2010 increased to 11.8 percent from 10.9 percent in the fourth quarter of 2009 primarily due to the acquisition of Bowne, higher acquisition-related expenses and a higher provision for bad debt expense, partially offset by lower incentive compensation expense.
 
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Came frommfg - Posted on February 22, 2011
Nice to see RRD coming around. Had you seen the Bedford Park team you would never..................
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Came frommfg - Posted on February 22, 2011
Nice to see RRD coming around. Had you seen the Bedford Park team you would never..................