RR Donnelley Reports Sales Growth, Earnings Improvement
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.