RR Donnelley sees Q1 profits plummet by 90%

North American print giant RR Donnelley has reported a more than 90% fall in first-quarter profit as it incurred restructuring charges and further declines in margins.

The printer, which also has operations in Europe, recorded earnings of $13.9m (£9.2m) in the first three months of the year, compared to $182m in the first quarter of 2008. Overall sales amounted to $2.5bn – down from $3bn in the previous year.

RR Donnelley president and chief executive Thomas Quinlan said the company had experienced "significantly reduced demand in most of the end markets" that it serves.

In the US, the company experienced a 14.9% fall in sales but was hit with a $32.7m restructuring and impairment charges as it realigned its cost base to meet the falling demand.

Sales across its international operations fell by 27.5% to $548.2m, exacerbated by fluctuations in the currency exchange rates.

Quinlan said that the company would now focus on maximising cash flow and liquidity.


See also:
RR Donnelley's GDS to raise transactional fee