RR Donnelley Reports Big Decline in Net Earnings for Third Quarter
Net sales for the International segment in the quarter decreased 11.5% to $638.3 million from the third quarter of 2008, including a 7.0% negative impact from changes in foreign exchange rates. The remaining decrease was caused by volume and price declines across most product lines, partially offset by fees received for the transition of a customer contract. The segment's operating margin, which was negatively impacted by charges for restructuring and impairment of $127.3 million in the third quarter of 2009 and $5.0 million in the third quarter of 2008, decreased to a loss of 11.3% in the third quarter of 2009 from 8.4% in the third quarter of 2008. Excluding restructuring and impairment charges, the segment's non-GAAP operating margin decreased to 8.6% in the third quarter of 2009 from 9.1% in the third quarter of 2008 due to the impact of price and volume declines, as well as higher variable compensation expense, partially offset by the benefits of continued productivity efforts, fees related to the transition of a customer contract and lower intangible amortization expense.
- Companies:
- RR Donnelley
- Places:
- Chicago