R.R. Donnelley Q2 Profit Tops View, Cuts Full Year Sales Outlook

(RTTNews) - R.R. Donnelley & Sons Co. (RRD) Tuesday said its second-quarter attributable profit fell to $43.5 million from $64.7 million in the previous year. Earnings per share dropped to $0.21 from $0.32.

Adjusted earnings were $0.41 per share, while it totaled $0.42 per share last year. On average, three analysts polled by Thomson Reuters expected earnings of $0.37 per share for the quarter. Analysts' estimates typically exclude special items.

Net sales fell 5.3 percent to $2.7 billion from $2.90 billion. Organic net sales declined 2.1 percent from the second quarter of 2014. Analysts expected revenues of $2.74 billion.

Further, the company reduced its full-year net sales guidance to $11.4 billion to $11.6 billion from the prior outlook of $11.7 billion to $11.9 billion. Analysts look for revenues of $11.66 billion.

Separately, the company said it intends to create three independent, publicly traded companies: one business focused on financial communications and data services called FinancialCo; another business focused on publishing and retail-centric print services to be called PRSCo; and the third business focused on customized multichannel communications management, known as CMCo.

The transaction is expected to take the form of a tax-free distribution to RR Donnelley shareholders of FinancialCo and PRSCo in two new, independent, publicly traded stocks.

The company expects to complete the spinoffs before the end of 2016. Following the completion of the transactions, existing RR Donnelley shareholders will own shares in all three companies.

The leadership, governance, corporate branding and other matters for each company are still being developed.