R.R. Donnelley & Sons
warned today of lower-than-expected full-year 2000 earnings, citing disappointing results in its logistics business and lower overall sales.
The print supplies company, based in Chicago, said it sees full-year 2000 earnings per share of $2.15 to $2.20, down from its previous estimates in "the upper $2.20s to the lower $2.30s." The company said the estimated ranges include a one-time gain of 6 cents. Six analysts polled by
First Call/Thomson Financial
produced a consensus estimate of of $2.24 a share, compared with actual earnings of $2.20 a share in 1999.
The company said higher outsourced transportation and fuel costs, as well as higher costs to meet service commitments for both packages and printed material, hampered its logistics business. Sales in its direct mail business, RRD Direct, and sales in its Mexican operations "continue to fall short of expectations," the company said. R.R. Donnelley did not provide any revenue guidance.
The company also announced it will immediately resume its share repurchase program, for which it is authorized to spend up to $165 million.
Shares of the company closed at $24.56 in Thursday trading on the
New York Stock Exchange