Printer Friendly

R.R. DONNELLEY SECOND-QUARTER EARNINGS UP 23 PERCENT TO 69 CENTS PER SHARE; DIVIDEND INCREASED AND TWO-FOR-ONE STOCK SPLIT AUTHORIZED

R.R. DONNELLEY SECOND-QUARTER EARNINGS UP 23 PERCENT TO 69 CENTS PER SHARE; DIVIDEND INCREASED AND TWO-FOR-ONE STOCK SPLIT AUTHORIZED
 CHICAGO, July 23 /PRNewswire/ -- R.R. Donnelley and Sons Company (NYSE: DNY), the world's largest printer, reported second-quarter net sales of $1.007 billion, up 8.5 percent, and net income of $53.7 million, equivalent to 69 cents per share, up 23 percent over 1991.
 For the first half, sales increased 8.3 percent to $1.945 billion. Net income for the first half was $89.2 million, equivalent to $1.15 per share, up 21 percent over 1991.
 The R.R. Donnelley board of directors authorized a two-for-one split of its common stock. The stock split will be effected by the distribution on Sept. 1, 1992, of one additional share of common stock for each share held by shareholders of record on Aug. 7, 1992.
 The directors also declared a quarterly cash dividend of 26 cents per share, up 4 percent from the prior quarterly rate of 25 cents, payable Sept. 1, 1992, to shareholders of record Aug. 7, 1992. This cash dividend is payable on shares outstanding prior to the two-for-one stock split announced today.
 Commenting on the operating results, John R. Walter, R.R. Donnelley chairman and chief executive officer, said: "Our sales increase reflected a higher volume of services, particularly in computer documentation and financial printing services. Our other businesses continue to be affected by the modest and uneven economic recovery from the recession. Nevertheless, all of our businesses are well-positioned and strong, with excellent long-term prospects."
 In both the second quarter and the first half, gross profit, earnings from operations, pre-tax earnings and net income all increased at rates greater than the sales increase. The improved earnings and earnings rates reflected the higher sales volume and a more favorable mix of sales; a strong focus on reducing costs; lower startup expenses and acquisition-related dilution; lower interest expenses and a lower income tax rate.
 In the second quarter, magazine activity improved because of moderately better advertising conditions and the addition of several new titles and expanded work for existing customers. Catalog and newspaper insert production levels reflected a continuing difficult retail environment, which is causing many retailers to plan conservatively. Book and directory printing continued to operate at good levels.
 During the first half, the company invested $146 million to expand, upgrade and extend its global operations. Full-year capital investment is estimated at $250 million. First-half capital investment included two acquisitions. In May, the company acquired PROLITHO, a provider of computer documentation services based in Provo, Utah. This acquisition supports the company's fast-growing U.S. operations, solidifies partnerships with existing customers and helps form new customer relationships. In March, the company acquired Laboratorio Lito Color, S.A. de C.V., a printer with operations in Mexico. The operations, which are being expanded, will serve fast-growing magazine and catalog customers in Mexico.
 Capital spending was funded by net cash from operations, which totaled $253 million, up $21 million over the first half of 1991. Cash flow was also used to reduce debt balances by $90 million.
 R.R. DONNELLEY AND SONS COMPANY
 Periods ended Three Months Six Months
 June 30 1992 1991 1992 1991
 Earnings
 Per share(A) $.69 $.56 $1.15 $.95
 Net sales $1,006,856,000 $927,872,000 $1,945,028,000 $1,795,970,000
 Gross profit 190,158,000 170,649,000 352,802,000 316,099,000
 Earnings from
 operations 92,616,000 79,599,000 158,191,000 137,063,000
 Earnings before
 income taxes 82,605,000 67,935,000 137,242,000 114,822,000
 Net income 53,693,000 43,478,000 89,207,000 73,486,000
 Average shares
 of common stock
 outstanding for
 the periods 77,738,000 77,765,000 77,721,000 77,656,000
 Shares of
 common stock
 outstanding
 at June 30 77,743,000 77,783,000 77,743,000 77,783,000
 (A) -- Based on the average number of shares of common stock outstanding during each period.
 -0- 7/23/92
 /CONTACT: Ronald G. Eidell, senior VP and treasurer of R.R. Donnelley and Sons, 312-326-8375/
 (DNY) CO: R.R. Donnelley and Sons Company ST: Illinois IN: PUB SU: ERN


CK -- NY055 -- 2450 07/23/92 11:13 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jul 23, 1992
Words:721
Previous Article:HOWARD B. WOLF, INC. REPORTS FINANCIAL RESULTS
Next Article:FORSCHNER GROUP REPORTS RECORD SALES AND NET INCOME FOR SECOND QUARTER
Topics:


Related Articles
R. R. DONNELLEY REPORTS FOURTH-QUARTER SALES AND EARNINGS INCREASES; BOARD APPROVES TWO ACQUISITIONS AND DECLARES DIVIDEND
R.R. DONNELLEY FIRST QUARTER EARNINGS INCREASE, EXCLUDING PREVIOUSLY ANNOUNCED RESTRUCTURING CHARGE AND ACCOUNTING CHANGES
R.R. DONNELLEY REPORTS SECOND-QUARTER EARNINGS PER SHARE OF 34 CENTS; QUARTERLY DIVIDEND INCREASED 8 PERCENT TO 14 CENTS PER SHARE
R.R. DONNELLEY THIRD-QUARTER SALES INCREASE 8.2 PERCENT; EARNINGS INCREASE 4.5 PERCENT EXCLUDING ONE-TIME EFFECT OF TAX RATE CHANGE
R.R. DONNELLEY REPORTS RECORD FOURTH-QUARTER RESULTS; SALES AND EARNINGS INCREASE 8 PERCENT
R.R. DONNELLEY REPORTS RECORD FIRST-QUARTER RESULTS; SALES AND EARNINGS PER SHARE INCREASE APPROXIMATELY 12 PERCENT
R.R. DONNELLEY REPORTS DOUBLE-DIGIT INCREASES TO FIRST-QUARTER SALES, EARNINGS AND CASH FLOW; EPS INCREASES TO 31 CENTS PER SHARE
R.R. DONNELLEY SETS EARNINGS, SALES AND CASH FLOW RECORDS FOR 1995'S SECOND QUARTER AND FIRST HALF
R.R. DONNELLEY EARNINGS GAIN 11% IN 1995; 4TH QUARTER EARNINGS RISE 9%
RESTRUCTURING CHARGE PRODUCES FIRST QUARTER LOSS FOR R.R. DONNELLEY

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters