By Trevor Shackelford August 17, 2005 -- RR Donnelley (NYSE: RRD) announced their second quarter results today. The company’s net earnings were $90.7 million, or $0.42 per share, up from a loss of $12.5 million, or $0.06 per share, last year. Non-GAAP earnings, which exclude restructuring, impairment, and other charges, were $110.6 million for the quarter. Net sales were $1.9 billion, up 4.8% from the same period last year. The company cited gains in publishing and retail sales as well as integrated print for the increase. Donnelley also raised their full year non-GAAP EPS guidance by $0.10. Topics of this Summary Quarter Highlights Segment Performance Guidance Raine Radar Q & A Quarter Highlights According to the company, Donnelley printed the majority of the new Harry Potter book released during the quarter, significantly helping the publishing segment The acquisition of the Asia Printing group closed in July – More acquisitions expected to be announced shortly Segment Performance Integrated Print Communications This segment includes books, direct mail, financial print, business communications/services, short-run commercial print, and the newly acquired Astron Group. Net sales increased 5.2% to $544.1 million. The company cited growth in direct mail and the inclusion of Astron for the increase. Operating margin increased to 13.1% from 11.0% last year. Publishing and Retail Services This segment includes magazine, catalog and retail, directories, logistics, and pre-media businesses, and the European and Asian businesses. Revenue increased 7.9% to $979.8 million. Operating margin for the business was 13.8% in the second quarter compared to 8.8% last year. Forms and Labels This segment includes Latin American business in addition to forms and labels. Net sales decreased 2.2% to $408.2 million in the second quarter from $417.4 million from the same period in 2004. Operating margin was 7.9% during the second quarter, down from 8.1% last year. Guidance For the second consecutive quarter, RR Donnelley is revising its guidance up. The company now expects non-GAAP EPS of $2.17, an increase of $0.10. Raine Radar The second major acquisition of the year closed with Asia Printing, and Donnelley is showing no signs of slowing down hinting at further M&A activity coming down the pike. Strong top line performance, fueled by acquisition, combined with a continued focus on keeping costs down has kept the company going strong while competitors such as Quebecor have faltered. Q & A The company expects that total capital expenditures will be close to the budget of $450 million, even with the current pace of acquisitions. The company remains focused on reducing costs and increasing productivity, despite recent successes. Commercial print was flat from last year, but performed according to the company’s plans. Donnelley has been very pleased with the match with Astron and the integration is moving ahead of schedule. The company declined to comment about the specific impact of the release of the latest Harry Potter.