Chicago-based R.R. Donnelley & Sons Co., reported net income for the first quarter of 2001 of $14.5 million. The results include restructuring charges of $22 million to cover the cost of closing operations in several of the company’s business units.
Before restructuring charges, net income was $27.9 million, compared with $46.7 million a year ago. Revenue for the quarter was $1.3 billion, down 3% from a year earlier.
The company blamed a number of factors for the earnings decline, including softness in capital markets activity, which affected demand for printing in the financial unit; and lowered demand for magazines, catalogs and trade books as ad spending declined. To counteract the volume shortfalls, R.R. Donnelley has closed facilities and made workforce reductions and reduced workweeks.
The company is investing $300 million over the next 24 months to upgrade some plants and replace equipment.
