R.R. Donnelley Reports Increased Earnings in 2006
R.R. Donnelley & Sons reported last week increased 2006 net earnings of $402.6 million or $1.84 per diluted share, up from $95.6 million or $0.44 per share in 2005. The company also reported a fourth quarter 2006 net loss of $1.1 million compared to a net loss of $236 million in the same period in 2005.
The company, which purchased Banta Corp., Perry Judds’ last year and entered into an agreement to purchase Von Hoffman in January, said net sales in the fourth quarter of last year were $2.5 billion, up 3.3 percent from the fourth quarter of 2005. The increase was attributed to new customer wins, increased volume with existing customers, acquisitions and favorable foreign exchange comparisons, offset in part by continued price pressure.
The Chicago-based company expects increased earnings this year in the range of $2.70 to $2.75 per diluted share, according to documents filed with the Securities and Exchange Commission. The acquisitions of Bant and Perry Judds’ will provide R.R. Donnelley, already the largest printer worldwide, with much needed additional capacity and, over time, will reduce its capital requirements, said Donnelley CEO Mark Angelson in a statement.
Donnelley wasn’t the only active buyer last year. After a failed attempt to acquire Banta, Stamford, Connecticut-based Cenveo Corp., a printer of envelopes, labels, packaging and business products, said in December it would buy Cadmus for $430 million. Cadmus, last month, bought the printing operations of LexisNexis, a division of publisher Reed Elsevier, for an undisclosed price.