Donnelley Reports Mixed, Largely Flat Financial Results
CHICAGO—Nov. 3, 2010—R.R. Donnelley & Sons Co. reported third-quarter net earnings of $53.3 million on net sales of $2.5 billion, compared to net earnings of $13.1 million on net sales of $2.5 billion in the third quarter of 2009.
Non-GAAP net earnings attributable to common shareholders totaled $92.5 million in the third quarter of 2010, compared to $111.9 million in the third quarter of 2009.
Third-quarter net earnings attributable to common shareholders included pre-tax charges for restructuring ($20.2 million) and impairment ($28.5 million, non-cash) totaling $48.7 million in 2010 compared to charges for restructuring ($129.7 million) and impairment ($2.0 million, non-cash) totaling $131.7 million in 2009. Third-quarter non-GAAP net earnings attributable to common shareholders exclude restructuring and impairment charges and acquisition expenses for both years, as well as losses related to debt extinguishment in 2009.
“The sales momentum that we saw in the second quarter carried into the third quarter, as we continue to win new customer contracts and our customers’ businesses return to growth,” said Thomas J. Quinlan III, RR Donnelley's President and Chief Executive Officer.
Quinlan added, “Not only do we expect this momentum to continue during the fourth quarter, we also expect this trend to continue in 2011. As we build our 2011 operating plan, we are encouraged by the progress we are making in selling integrated communications solutions. These solutions span across the many products and services in our platform, and are enabling us to convert transactional business into broader contractual relationships.”
• Net sales for the U.S. Print and Related Services segment in the quarter increased 2.0% from the third quarter of 2009 to $1.9 billion, primarily attributable to volume increases in logistics, financial print and direct mail, partially offset by price declines across most products and services, as well as lower paper sales.