RR Donnelley Records Drop in Earnings on Higher Sales

The segment’s operating income, which was negatively impacted by charges for restructuring and impairment of $65.1 million in the second quarter of 2011 and $3.5 million in the second quarter of 2010, decreased to $132.8 million from $179.5 million in the second quarter of 2010.

Excluding the restructuring and impairment charges, the segment’s non-GAAP operating margin improved to 10.3 percent in the second quarter of 2011 from 10.1 percent in the second quarter of 2010, due to productivity initiatives, lower variable compensation expense and a higher recovery on print-related by-products, which more than offset the impact of volume declines and continued pricing pressure.