RR Donnelley Ends 2006 Strong
R.R. Donnelley & Sons Co. reported a net loss of $1.2 million in< fourth-quarter 2006, a significant turnaround from the $162.5 million< loss it generated a year earlier. The Chicago-based printer’s net sales rose from $2.39 billion to $2.47 billion during the same period.
For all of fiscal 2006, the company generated $400.6 million in net income, up from $137.1 million it made in 2005. The company’s net sales increased from $8.43 billion to $9.32 billion in the year just finished. The quarter and the year ended Dec. 31.
As of fourth-quarter 2006, R.R. Donnelley began reporting its results for two business units, Global Print Solutions and Global Services. Global Print Solutions, which encompasses its magazine, catalog and retail operations; directories; book; logistics; direct mail; short-run commercial print; and European and Asian operations, saw its fourth quarter 2006 fortunes rise to $1.6 billion, a 2.3% increase from fourth-quarter 2005.
Global Services includes digital solutions; financial printing; global document solutions; OfficeTiger (a business process outsourcing operation); and forms, labels and statement printing operations. This unit’s sales rose 5.1% above fourth-quarter 2005’s level, to $914.2 million. The company did not offer full-year figures for the two newly configured units.
R.R. Donnelley’s finances in both 2005 and 2006 were affected by restructuring charges. The 2005 expenses were largely related to the< company’s acquisition of Moore Wallace, while the 2006 charges were incurred as a result of corporate reorganization and exiting unspecified< businesses.
Separately, R.R. Donnelley announced it had been awarded a multi-year contract from Williams-Sonoma. Under the terms of the new contract, R.R. Donnelley will provide print and logistic services for Williams-Sonoma’s namesake catalog, the Catalog for Cooks, William-Sonoma Home and West< Elm brand. The printer did not announce the value of the contract.
