Declining volumes take bite out of RR Donnelley's Q4 results
Commercial printer RR Donnelley reported net sales in the fourth quarter of 2008 totaled $2.8 billion, down 9.5% from the previous year.
The decrease was caused by volume declines, unfavorable foreign exchange rates and continued price pressure primarily due to the worsening global recession, offset slightly by acquisitions.
The company also reported a fourth-quarter net loss from continuing operations of $686.9 million, or $3.35 per diluted share, compared to a net loss from continuing operations of $292.9 million, or $1.37 per diluted share, in the fourth quarter of 2007.
"Volatility in the global economy has resulted in significant declines in demand across nearly all of the diverse industries that we serve," said Thomas Quinlan III, RR Donnelley's president and CEO, in a statement.
Net sales for the US print and related services segment in the quarter decreased 4.9% to $2.2 billion compared with the previous year.
Partially offsetting these volume declines and price pressure were sales from the acquisitions of Cardinal Brands and Pro Line Printing.
Net sales for the International segment in the quarter decreased 22.1% for a total of $637.8 million compared with the previous year due to volume declines and unfavorable foreign exchange rates in most reporting units as well as continued price pressure.