R.R. Donnelley, thanks in part to acquisitions completed last year, reported $3 billion in first-quarter sales, a 7.3% increase over the same period in 2007.
Net earnings, aided by a tax gain and items related to restructured, grew even more dramatically. They leaped by 31% to $182.5 million.
But the sales gains were offset by ongoing price pressure, the printer said.
In addition, the acquired companies are producing a lower-than-usual operating margin, it continued.
The firm’s U.S. print and related services segment saw its sales grow by 6.6% to $2.2 billion. This was due to the acquisitions of Von Hoffman, Cardinal Brands, Perry Judd’s, Banta and Pro Line Printing, and to price hikes in the logistics services, labels and catalog areas.
But sales fell for commercial print, directories and forms. And the gross margin for the segment declined to 11.9% from 12.3% last year.
International sales, helped in part by acquisitions and changes in foreign exchange rates, rose by 9.5% to $756.4 million.
“We are pleased with our first-quarter performance,” said ‘CEO Thomas J. Quinlan III, in a statement. “In the context of a challenging economic environment, we benefited from both the ability to manage our customers’ print spend across our broad product and service offering and from the operational flexibility we have created through our historical platform investments.”
