R.R. Donnelley Posts 92% Plunge in Profit

R.R. Donnelley says its profit plunged 92% in the first quarter, as a result of restructuring and impairment charges, as well as sluggish demand.

Author:: Jeanine Poggi
Publish date:: May 6, 2009 11:19 AM EDT

R.R. Donnelley & Sons (RRD) - Get Report, one of the nation's largest printers of magazines, catalogs and other materials, posted a 92% plummet in first-quarter profit, decimated by restructuring and impairment charges, as well as sluggish demand.

During the quarter, the company earned $13.9 million, or 7 cents a share, down from $182.5 million, or 85 cents, in the same period a year earlier.

Excluding restructuring and impairment charges of $54.2 million, earnings were 24 cents a share. Analysts expected earnings of 38 cents.

International sales declined 27.5% to $548.2 million, while U.S. print and related services dropped 14.9% to $1.9 billion.

Separately, the company said it received a multi-year print management contract extension from Air Canada. The agreement covers management, production, warehousing, fulfillment and distribution of printed documents and related services, and the company's CustomPoint e-commerce system.

Shares of the company fell 3% to $12.31 in morning trading.