RR Donnelley Lowers Expected 2003 Earnings, Blames book and logistics businesses
Press release from the issuing company
CHICAGO, Jan. 12 -- RR Donnelley announced today that it expects its full-year 2003 earnings per diluted share to be $1.44, subject to final adjustments. The following items are expected to be reflected in the company's results:
Restructuring and impairment charges of approximately $16 million ($13 million after-tax or $0.11 per diluted share). Fourth quarter 2003 is expected to include charges of $7 million ($7 million after-tax or $0.06 per diluted share) primarily attributable to impairment charges at the company's Latin America and logistics businesses.
A non-cash tax benefit of $35 million ($35 million after-tax or $0.31 per diluted share) due to favorable resolution of 4 years of IRS audits.
The company previously expected to report full-year 2003 earnings per diluted share at the low end of a $1.25 to $1.40 range. This range incorporated expected restructuring charges of six cents per diluted share. Adjusting for the anticipated fourth-quarter impairment charges and tax benefit, the company's 2003 results are expected to fall short of previous guidance.
The company attributed lower than previously expected earnings for 2003 to the fourth quarter results of its book and logistics businesses. Strength in the company's financial services business partially offset these shortfalls.
The company will provide details on its performance and action plans when it reports its fourth-quarter and full-year 2003 results.
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