R.R. Donnelley & Sons Co., Chicago, will close at least one printing plant and plans to invest $300 million to improve the efficiency of its printing network.
In a move to consolidate product and equipment in geographically strategic plants, the company will close its South Daytona, FL, plant, which prints magazines, catalogs and advertising inserts, by the end of the second quarter. The plant opened in 1991 and employs 198 people. Production will transfer to other plants, the company said in a statement.
It is also considering closing its Des Moines, Iowa, printing plant. The plant, which employs approximately 800 people, was acquired in 1990. It produces a variety of magazines under long-term contracts, as well as catalogs and newspaper advertising inserts. A final decision is expected next month, the company said.
Over the next 24 months, the company plans to invest up to $300 million to improve the efficiency of its long-run printing and binding operations serving its magazine, catalog and retail customers. The investments include upgrading plants with fewer, yet more efficient presses, and related binding equipment.
Separately, spurred by a widespread softening in the economy, R.R. Donnelley has lowered its earnings per share expectations for 2001 to range from $1.95 to $2.10 before one-time items and restructuring charges compared to $2.20 to $2.35 per share disclosed on Jan. 31. In the company’s long-run printing unit, advertising insert and magazine customers have reduced page counts as advertising spending has declined, and catalogers have cut back on merchandising collateral as consumer orders have slowed, the company said.
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