logo
  Join        Login             Stock Quote

R.R. Donnelley (RRD) Q4 Earnings Decline As Pricing Pressure Hits Margins

 February 26, 2013 08:05 AM
 


(By Balaseshan) R.R. Donnelley & Sons Co. (NASDAQ: RRD) reported a decline in fourth quarter adjusted earnings as smaller gain on pension curtailment, an unfavorable product mix and pricing pressure decreased gross margins.

Adjusted earnings were $78.1 million or $0.43 per share, down from $85.2 million or $0.46 per share last year. Sales fell 2.2 percent to $2.66 billion, due to volume declines, price erosion and an unfavorable impact of lower pass-through paper sales.

Analysts, on average, polled by Thomson Reuters had expected profit of $0.37 per share on revenue of $2.55 billion.

[Related -6 Year-End Bounce Candidates]

Sales from U.S. print and related services declined 3.7 percent to $1.9 billion, while sales from International increased 1.9 percent to $729.3 million.

Gross margins decreased to 22.0 percent from 22.9 percent. Adjusted operating margin improved to 6.6 percent from 6.1 percent.

Looking ahead into the fiscal 2013, R.R. Donnelley expects to generate strong cash flow of $400 million to $500 million. The company expects to continue to reduce its leverage, and is revising its targeted gross leverage on a long-term sustainable basis to be in the range of 2.25 to 2.75 times, down from the previous range of 2.5 to 3.0 times.

The stock closed Monday's session down 0.66 percent at $9.76. Over the past year, RRD shares have been trading between $8.30 and $14.33.

iOnTheMarket Premium
Advertisement

Advertisement


Post Comment -- Login is required to post message
Name:  
Alert for new comments:
Your email:
Your Website:
Title:
Comments:
 

rss feed

Latest Stories

article imageGold Slides On Perfect Storm For Dollar

For all the anticipation surrounding the delivery of the Fed’s statement in the run-up to the September read on...

article imageForward Guidance Now A Nightmare For Fed.

Janet Yellen is probably sorry Ben Bernanke ever embarked on his program of the Fed providing read on...

article imageThis Once-Broken Social Media Stock Is Back On The Warpath

In the brief history of social media stocks, history is repeating itself. Both Facebook (NASDAQ: FB) and read on...

article imageItalian Workers Were Too Productive For 20 Years

The 2008 crisis has resulted in significant downward revisions of potential growth for most advanced read on...

Advertisement
Popular Articles

Advertisement
Daily Sector Scan
Partner Center



Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.