Rebounding RR Donnelley Posts Strong Q4 Earnings

CHICAGO—RR Donnelley reported fourth-quarter net earnings attributable to common shareholders of $27 million on net sales of $2.7 billion, compared to a net loss attributable to common shareholders of $79.5 million on net sales of $2.6 billion in the fourth quarter of 2009.

The fourth-quarter net earnings (loss) attributable to common shareholders included pre-tax charges for restructuring ($21.5 million) and impairment ($61.5 million, non-cash) and acquisition-related costs ($5.6 million) totaling $88.6 million in 2010 compared to charges for restructuring ($17.5 million) and impairment ($131.1 million, non-cash) and acquisition-related costs ($0.1 million) totaling $148.7 million in 2009.

Non-GAAP net earnings attributable to common shareholders totaled $107.2 million in the fourth quarter of 2010, compared to $95.4 million in the fourth quarter of 2009. Fourth-quarter non-GAAP net earnings attributable to common shareholders exclude restructuring and impairment charges, acquisition expenses and the write-down of affordable housing investments for both years, as well as income tax expense related to the reorganization of entities within the International segment in 2009.

Net sales in the quarter were $2.7 billion, up 4.8 percent from the fourth quarter of 2009, including $61.2 million related to the acquisition of Bowne and an unfavorable impact of changes in foreign exchange rates and lower pass-through paper sales of $22.7 million.