R.R. Donnelley & Sons
said its first-quarter results fell short of estimates as lower activity affected most of the company's markets, most notably magazines, catalogs and retail.
The printing services company said its first-quarter net income was $23 million, or 20 cents a share, compared with income of $15 million, or 12 cents a share, in the year-ago quarter.
Excluding restructuring and impairment charges, the company earned $9 million, or 8 cents a share, down 66% from $28 million, or 23 cents a share, last year. Analysts polled by Thomson Financial/First Call were expecting the company to earn 16 cents a share.
Revenue fell by 16% to $1.1 billion, from $1.3 billion last year.
The company said its results were hurt by weaknesses in the magazine and catalog markets, but Donnelley said it has started several cost reduction efforts that should reduce the company's cost structure by $160 million by the end of the fourth quarter.
In a press release, the company's CEO said, "Even though our markets are still in recession, we are continuing to strengthen our competitive position." The company reiterated its previous guidance of $1.50 to $1.65 a share for the year, in line with analyst estimates of $1.58.
Shares of R.R. Donnelley & Sons were recently down almost 3% to $31.14 after closing at $31.96 Tuesday.