Quarterly Revenue Increases As Donnelley Reports 3rd Quarter Earnings
Press release from the issuing company
CHICAGO, R.R. Donnelley & Sons Company (NYSE: DNY) earnings per share were 75 cents in the third quarter, up 12% from a year ago, including a one-time gain of 6 cents a share from the sale of shares acquired in an insurance company demutualization. Earnings per share from continuing operations grew 3% to 69 cents, up from 67 cents a year ago, excluding the one-time gain.
Net income for the quarter increased 7.9% to $92.3 million from $85.6 million a year ago. Revenues rose 2.4% to $1.43 billion in the quarter. Return on invested capital was 14.3%, excluding one-time items, up from 13.9% a year ago. Earnings before interest, depreciation, taxes and amortization grew 7% to $270 million, up from $253 million (excluding Stream) a year earlier.
"Our core printing businesses are robust -- in fact, for the first time these businesses are earning more than their cost of capital, based on EVA [Economic Value Added]. Customers and cash flow from our healthy core businesses will power our transformation to a communications solutions company," said William L. Davis, chairman and chief executive officer of R.R. Donnelley. "To overcome the challenges we encountered this quarter, we are now taking strong action to restore our double-digit growth in earnings per share from continuing operations, and I am highly confident that we will meet our commitment to create shareholder value."
During the quarter, R.R. Donnelley achieved a significant milestone in realizing the company's plan to provide integrated communications solutions for its customers. R.R. Donnelley announced it will provide total supply chain solutions for Ziff Davis Media Inc., including facilities management, printing, logistics and paper management for seven magazine titles, including Yahoo! Internet Life and a new launch, Expedia Travels.