William L. Davis - Donnelley's Number-one Son
"Those global organizations now have access to the competencies in our domestic plants, which is exactly what we bring to these foreign markets," Davis says. "This makes it easier for us to deliver these skills."
It also makes it easier to deliver value to shareholders. A well-structured company improves business, which improves stock performance.
Davis admits that shareholders have a right to be disappointed in the company's stock performance during the past few years. He doesn't plan on disappointing them in the future. His mission? To get R.R. Donnelley back to the basics.
Returning to Its Roots
In a time when non-print services have the industry buzzing, R.R. Donnelley is rediscovering ink on paper. The company has committed to traditional printing.
"Perhaps we lost a little bit of the intensity in that area as we looked into non-print-related opportunities," Davis says. "We're back to focusing our attention almost exclusively on printing, ink on paper, and all the related functions. That means some long-term investments, but they will be long-term investments in ink on paper."
R.R. Donnelley made such a long-term investment recently in its Lancaster, PA, facility. The board of directors approved a $20 million allocation to purchase a Heidelberg Harris M-3000 "Sunday" press and related finishing equipment, expanding the Lancaster plant's catalog operations. Scheduled to begin production in the summer, the web offset press will benefit high-profile customers such as Nordstrom and Eddie Bauer.
Just because R.R. Donnelley now emphasizes traditional printing doesn't mean the company will produce all of its jobs on traditional presses, however. Digital printing systems occupy a pivotal position in the hierarchy of equipment.
In March of 1997, R.R. Donnelley shut down the Memphis facility that housed its standalone digital division and relocated the equipment to other plants across various business units. Davis claims that this move brought digital printing capabilities closer to customers.