Slowdown Hits Donnelley's Earnings

Share this content:
The soft economy for communication and advertising took a chunk out of R.R. Donnelley's second quarter earnings which were down 14 cents per share from a year ago, the company said yesterday.


Chicago-based R.R. Donnelley said net income was $38.3 million compared with $56.3 million, and had earnings of 32 cents per diluted share, down from 46 cents per share from a year ago.


The company said it has suffered from significant volume decreases in commercial print operations that produce magazines, catalogs and advertising inserts. R.R. Donnelley said it has been combating the slowdown by adjusting capacity by consolidating plants, closing facilities, idling equipment and reducing the number of workers and hours worked.


The results exclude pretax restructuring and impairment charges of $52.3 million to cover costs associated with the closing of plants and offices in Des Moines, Iowa, and Old Saybrook, CT, as well as workforce reductions.


After charges, net income for the quarter was $6.1 million, or 5 cents per diluted share. Revenues for the quarter were $1.3 billion, down 7 percent from the year ago period.


The company said it will continue to invest in transforming its strategy, structure and culture to become an integrated communications provider. Along those lines the company has invested $300 million to upgrade its printing plants.


"We remain firmly committed to transforming this company, and we are making substantial progress," said William L. Davis, president/CEO. "This flexible and integrated network will give us the capabilities to stay ahead of our customers' changing communication needs."


Loading links....
close

Next Article in Multichannel Marketing

Sign up to our newsletters

Company of the Week

We recently were named B2B Magazine's Direct Marketing Agency of the Year, and with good reason: We make real, measureable, positive change happen for our clients. A full-service agency founded in 1974, Bader Rutter expertly helps you get the right message to the right audience at the right time through the right channels. As we engage our clients' audiences along their journey, direct marketing (email, direct mail, phone, SMS) and behavioral marketing (SEM, retargeting, contextual) channels deliver information relevant to the needs of each stage. We are experts at implementing and leveraging marketing technologies such as CRM and marketing automation in order to synchronize sales and marketing communications. Our team of architects and activators plan, execute, measure and adjust in real time to ensure the strategy is working as needed and change things if it's not.

Find out more here »

DMN's Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here