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CHICAGO PLANT TO CLOSE: R.R. DONNELLEY TO TAKE ONE-TIME RESTRUCTURING CHARGE

 CHICAGO, Jan. 28 /PRNewswire/ -- R.R. Donnelley and Sons Company, the world's largest commercial printer, said today that as a result of Sears Roebuck & Co.'s decision to discontinue its catalog operations, it will take a one-time charge of $60 million (net of associated tax benefit) in first quarter 1993 to primarily cover the costs of shutting down its Chicago plant. The plant, located on Chicago's near south side, will phase out its operations after satisfying production requirements of customers other than Sears.
 "While we regret closing any operation, it is especially difficult for us to close our Chicago plant, which is our oldest, dating back to 1928," said John R. Walter, Donnelley chairman and CEO. "My deepest regret is the impact this will have on some of our most loyal and dedicated employees who have contributed so much to the company's success."
 The company noted the plant's unusual vertical factory design, which helped earn it landmark status, is not economically efficient to operate without the Sears catalog work. At the time of Sears' decision, the company said it was studying ways to relocate the production, at considerable expense, to a newer facility.
 The company said it also is studying the consolidation and rationalization of its prepress operations, which include its Elgin, Ill., facility where approximately one-quarter of the production was devoted to Sears. The one-time charge includes costs associated with this rationalization.
 R.R. Donnelley's Chicago plant has 660 full-time employees. Approximately 60 percent of its production was dedicated to Sears catalogs.
 The phase out of the Chicago plant is dependent on the relocation of its remaining production, including a financial printing operation that also is located at Donnelley's south side complex.
 R.R. Donnelley is the world's largest commercial printer of catalogs, newspaper advertising inserts, magazines, books, directories, financial printing and computer documentation. Headquartered in Chicago since 1864, the company employs more than 30,000 and operates printing plants, sales offices, service centers and subsidiaries in more than 140 locations in North America, Europe, the Caribbean and Asia.
 -0- 01/28/93
 /CONTACT: Robert Pyzdrowski, senior vice president - manufacturing, catalog group, 312-326-8552; Diane M. Dunne, manager - corporate communication, 312-326-8419; or Ronald G. Eidell, senior vice president and treasurer, 312-326-8375, all of R.R. Donnelley/
 (DNY)


CO: R.R. Donnelley and Sons Company ST: Illinois IN: PUB SU: RCN

AH -- NY067 -- 0291 01/28/93 12:59 EST
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Date:Jan 28, 1993
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