RR Donnelley Trims Income, Sales in Second Quarter
Printer RR Donnelley reported net sales of $2.36 billion during the second quarter of 2009, down from $2.92 billion in second-quarter 2008. The printer’s net income fell from $148.8 million a year ago to $26.2 million. The quarter ended June 30.
The company attributed its revenue loss to volume declines and price pressures due to the economic slowdown. Second-quarter 2009’s numbers also reflect $48.2 million in restructuring and impairment charges.
Within its various operating segments, net sales for U.S. Print and Related Services dropped 17.6% to $1.78 billion from second quarter 2008. The segment’s operating margin, which reflected $26 million in restructuring and impairment charges during the most recent quarter, fell to 7.8% of sales ($138.5 million) in the second quarter of 2009. During second-quarter 2008, this had stood at $282.6 million or 13.1% of sales.
Net sales for RR Donnelley’s International segment fell 24.6% to $574.4 million, down from $762 million in second quarter 2008. The sales drop reflected an 11.4% negative impact from changes to foreign exchange rates.
The segment’s operating results were was negatively affected by charges for restructuring and impairment of $20.9 million during the second quarter of 2009 and restructuring charges of $9.2 million in the second quarter of 2008. Operating margin decreased to 4% ($22.9 million) in the second quarter of 2009 from 5.1% ($38.5 million) a year earlier.
“We continued to be impacted by the global economic recession during the second quarter, as most of the end-markets that we serve experienced reduced demand,” Thomas J. Wuinlan III, RR Donnelley’s president and CEO, said in a statement.
“The pace of decline was similar to that which we experienced during the first quarter and consistent with our expectations,” Quinlan added.
