RR Donnelley Records Earnings Jump on Flat Sales
The segment’s operating income, which was negatively impacted by charges for restructuring of $9.5 million in the first quarter of 2010 and restructuring and impairment charges of $18.3 million in the first quarter of 2009, improved to $33.7 million in the first quarter of 2010 from $16.5 million in the first quarter of 2009.
Excluding the restructuring and impairment charges, the segment’s non-GAAP operating margin increased to 7.5% in the first quarter of 2010 from 6.3% in the first quarter of 2009 due to favorable product mix and the benefits of continued productivity efforts, partially offset by the impact of price erosion.
Unallocated Corporate operating expenses increased to $51.7 million in the first quarter of 2010 as compared to $43.5 million in the first quarter of 2009. Excluding acquisition expenses of $2.0 million and restructuring charges of $0.1 million in the first quarter of 2010 and restructuring charges of $3.2 million in the first quarter of 2009, unallocated Corporate operating expenses increased $9.3 million to $49.6 million in the first quarter of 2010. Higher non-cash pension and other benefits-related expenses, partially offset by our productivity efforts, were the primary factors contributing to the increase.
RR Donnelley will host a conference call and simultaneous webcast to discuss its first-quarter results today, Wednesday, May 5, at 10:00 a.m. Eastern Time (9:00 a.m. Central Time). The live webcast will be accessible on RR Donnelley’s web site: www.rrdonnelley.com. Individuals wishing to participate can join the conference call by dialing 706.634.1139. A webcast replay will be archived on the Company’s web site for 30 days after the call. In addition, a telephonic replay of the call will be available for seven days at 706.645.9291, passcode 66556813.
About RR Donnelley
RR Donnelley (NASDAQ: RRD) is a global provider of integrated communications. Founded more than 145 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.