Donnelley Suffers Massive Q1 Decline in Profits

CHICAGO—RR Donnelley posted an alarming drop of 92 percent in first quarter net profits this week, plunging to $13.9 million on net sales of $2.5 billion as the slumping economy and restructuring charges took its toll on North America's largest printer. For the same period in 2008, the company pulled in $182 million in earnings on sales of $3 billion.

In other company news, Donnelley has been awarded a $30 million multiyear contract renewal by Medbuy Corp. Under the terms of the deal, Donnelley will provide Web-to-print solutions and customized health care facility products such as clinical and administrative forms, labels, kits, brochures and other preprinted materials.

Donnelley and Air Canada also extended their existing relationship with a multimillion dollar pact.