Donnelley Reports 2000 Earnings, Net Income Down $25 Million
Press release from the issuing company
CHICAGO, January 31, 2001 -- R.R. Donnelley & Sons Company (NYSE: DNY) reported income from continuing operations for the fourth quarter of 2000 of $72 million, or 58 cents per diluted share, compared with $100 million, or $0.80 per diluted share, a year ago, excluding one-time items. For the full 12 months, excluding one-time items, the company reported net income of $259 million, or $2.11 per diluted share, compared with $285 million, or $2.20 per diluted share, a year earlier. Full-year earnings in 2000 exclude a third-quarter pretax gain of $13 million, or 6 cents per diluted share, resulting from the sale of shares received in the demutualization of the company's basic life insurance carrier.
R.R. Donnelley's Board of Directors has authorized a $300 million stock repurchase program that expires on Jan. 31, 2002. The new authorization replaces the previous authorization under which R.R. Donnelley purchased 7.7 million shares at a cost of $198 million.
"We are confident in the future of Donnelley," said William L. Davis, chairman, president and chief executive officer. "We continue to deliver strong cash flow in excess of our investment needs, and using this cash to buy shares at the current price affirms our commitment to increasing shareholder value."
Issues in the company's logistics and direct mail businesses, and a slowdown in U.S. capital markets, drove the fourth-quarter and second-half earnings declines. This overshadowed the solid full-year performance of our other businesses. This performance was driven by continuing productivity improvements and strong demand for magazines, catalogs, advertising inserts and books.
"R.R. Donnelley moves into 2001 focused on taking strong actions to turn around our underperforming businesses while responding to challenges posed by the economy," said Davis, adding that the company expects earnings per share for 2001 to range between $2.20 and $2.35. "This is consistent with our revised operating plans for the year and will allow us to achieve our strategies."
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