RR Donnelley Reports Big Decline in Net Earnings for Third Quarter
Excluding charges for restructuring and impairment and acquisition expenses, our non-GAAP operating margin in the third quarter of 2009 decreased to 9.1% from 11.5% in the third quarter of 2008, as the benefits from our productivity efforts and fees received for the transition of a customer contract, unrelated to the previously reported termination of a significant long-term customer contract, were more than offset by volume and price declines and a $77.3 million increase in variable compensation expense. This increase in variable compensation, a $39.9 million expense in the third quarter of 2009, compared to an expense reversal of $37.4 million in the third quarter of 2008, accounts for approximately 300 basis points of the decline in our non-GAAP operating margin.
- Companies:
- RR Donnelley
- Places:
- Chicago