New Threads Only:  Add to Google Reader or Homepage
New Threads & Replies:  Add to Google Reader or Homepage
Forums are for serious investors only. GuruFocus Forum Rules.

Forum List » Business News and Headlines
SEC Filings, Earing Reports, Press Releases
New Topic Search
Goto Thread: PreviousNext
Goto: Forum ListMessage ListNew TopicSearchLog In
R.R. Donnelley & Sons Company Reports Operating Results (10-Q)
Posted by: gurufocus (IP Logged)
Date: November 1, 2012 04:34PM

R.R. Donnelley & Sons Company (RRD) filed Quarterly Report for the period ended 2012-09-30. R.r. Donnelley & Sons Company has a market cap of $1.83 billion; its shares were traded at around $10.03 with a P/E ratio of 5.3 and P/S ratio of 0.2. The dividend yield of R.r. Donnelley & Sons Company stocks is 10.3%.



Highlight of Business Operations:

During the three months ended September 30, 2012, the Company’s operating margin increased from 5.8% to 7.4% as compared to the same period in the prior year. This increase was partially driven by restructuring actions initiated by the Company in the current and prior year to further reduce the Company’s overall cost structure. These actions included the reorganization of sales and administrative functions across all segments as well as the closures of six manufacturing facilities during the nine months ended September 30, 2012. Further, the Company expects lower full-year payouts under its employee incentive compensation plans. As a result, incentive compensation expense decreased by $30.5 million as compared to the third quarter of 2011 on a consolidated basis, with approximately $21.9 million, $4.7 million, and $3.9 million reflected in the U.S. Print and Related Services segment, International segment, and Corporate, respectively.

Net sales of products for the three months ended September 30, 2012 decreased $193.7 million, or 8.2%, to $2,171.2 million versus the same period in the prior year, including a $29.8 million, or 1.3%, decrease due to changes in foreign exchange rates. Net sales of products decreased in the U.S. Print and Related Services segment, resulting from lower overall volume, decreased pass-through paper sales and ongoing price pressure, and in the International segment, primarily due to changes in foreign exchange rates and lower volume in Brazil, largely due to a shift in the timing of a project to the fourth quarter. These decreases were partially offset by organic growth in Asia.

Net sales from services for the three months ended September 30, 2012 increased $19.2 million, or 6.0%, to $337.6 million versus the same period in the prior year, partially offset by a $2.1 million, or 0.7%, decrease from changes in foreign exchange rates. Net sales from services increased due to higher logistics volume, driven primarily by growth in freight brokerage services, as well as higher financial services volume.

Net sales of products for the nine months ended September 30, 2012 decreased $430.8 million, or 6.2%, to $6,557.4 million versus the same period in the prior year, including a $88.8 million, or 1.3%, decrease due to changes in foreign exchange rates. Net sales of products decreased in the U.S. Print and Related Services segment, resulting from lower overall volume, decreased pass-through paper sales, ongoing price pressures and a decline in capital markets transactions activity, and in the International segment, primarily due to changes in foreign exchange rates. These decreases were partially offset by increased volume in business process outsourcing, organic growth in Asia and rebate adjustments to net sales to correct an over-accrual of rebates due to certain office products customers.

Net sales from services for the nine months ended September 30, 2012 increased $102.9 million, or 11.4%, to $1,004.9 million versus the same period in the prior year, partially offset by a $6.1 million, or 0.7%, decrease due to changes in foreign exchange rates. Net sales from services increased due to higher logistics volume, driven primarily by growth in freight brokerage services, as well as increased volume in XBRL financial services.

Read the The complete Report



Stocks Discussed: RRD,
Rate this post:




Sorry, only registered users may post in this forum.

Please Login if you have an account or Create a Free Account if you don't




Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial