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R.R. Donnelley posts 92 percent plunge in 3rd-qtr profit, due largely to loss of big customer
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CHICAGO - R.R. Donnelley & Sons. Co. on Wednesday said its third-quarter profit fell 92 percent, weighed down by charges related to the loss of a big customer.
The Chicago printing services company said net income fell to $13.1 million, or 6 cents per share, compared with $168.2 million, or 80 cents per share, a year ago.
The recent quarter's results included charges of $131.7 million for restructuring and impairment, most of which was due to the termination in September of a significant long-term customer contract. The customer was not identified.
Excluding these items and other charges, adjusted earnings for the quarter totaled 54 cents per share.
Analysts polled by Thomson Reuters, on average, expected profit of 46 cents per share. Analyst estimates typically do not include one-time charges.
Sales fell 14 percent to $2.46 billion, from $2.86 billion a year ago. The company said about 2 percent of that drop reflected a negative impact from foreign exchange rates.
R.R. Donnelley said sales in its U.S. print and related services unit fell 15 percent to $1.8 billion, due to volume and price declines across all product lines. International sales dropped 12 percent to $638.3 million, including a 7 percent drop from currency exchange rates.
President and CEO Thomas J. Quinlan III said demand in most of the company's markets remains "challenged by economic conditions," but appears to be stabilizing. The company expects revenue to rise slightly in the fourth quarter from the third, but did not give a specific forecast.
R.R. Donnelley shares rose 83 cents, or 4 percent, to $21.58. The stock has traded between 45.54 and $22.25 in the past 52 weeks.
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