R.R. Donnelley Q2 Net Declines, Revenues Climb; Backs 2014 Sales Outlook

(RTTNews) - Print and related services provider R.R. Donnelley & Sons Co. (RRD) Wednesday reported lower second-quarter net profit, despite sales growth of about 13 percent. The company also backed its sales outlook for full year 2014.

Thomas Quinlan III, president and chief executive officer of the company said, "As we begin the second half of the year, our year-to-date performance, including the on-boarding and integration of our acquisitions that closed in the first quarter, keeps us on track to deliver our full-year guidance."

For the quarter, net earnings attributable to shareholders declined to $64.7 million or $0.32 per share from $65.4 million or $0.36 per share in the previous year. The share count in the latest quarter increased by 18.2 million shares from last year on account of further shares issued in connection with the acquisition of Consolidated Graphics and the North American operations of Esselte.

Net earnings attributable to shareholders included pre-tax charges of $28.3 million and $25.4 million in 2014 and 2013, respectively.

Excluding pre-tax charges and other adjustments, non-GAAP net earnings attributable to shareholders were $0.42 per share, while it was $0.45 per share a year ago.

Two analysts polled by Thomson Reuters expected the company to report earnings of $0.35 per share for the quarter. Analysts' estimates typically exclude special items.

Income tax expense totaled $39.5 million, up from $35.2 million in the preceding year.

Net sales for the quarter climbed 12.9 percent to $2.90 billion from $2.5 billion last year, reflecting mainly acquisitions of Consolidated Graphics and the North American operations of Esselte.

After adjusting for the positive impact of acquisitions and pass-through paper sales, and negative impact of dispositions, organic sales increased 0.8 percent.

For full year 2014, the company still expects net sales to be in the range of $11.5 billion to $11.8 billion. Analysts expect revenues of $11.70 billion for 2014.

RRD closed Tuesday's regular trading at $16.47, up 1.73 percent.