RR Donnelley has posted a second-quarter loss after it received a major impairment charge for writing off several trade names.
The world's biggest printer made a net loss of £34.1m ($69.4m), or 17p per diluted share compared with 2006, in which net earnings from continuing operations hit £61.1m, or 28p per diluted share.
Earnings before interest, taxes, depreciation and amortisation (EBITDA) results in Q2 2007 were hit with a non-cash pre-tax impairment charge of £155.6m.
This was in response to the firm writing off its Moore Wallace, OfficeTiger and other trade names by the Chicago-based company.
Thomas J Quinlan III, president and chief executive officer of RR Donnelley, said: "We are pleased by our strong performance in the second quarter.
"Sales growth on our legacy platform was in line with real GDP growth and while the companies we acquired in 2007, in aggregate, carried a lower operating margin historically, we made great progress in integrating them as well as beginning to utilise their open capacity and close the margin gap."
The company repurchased 4m shares of common stock during and subsequent to the end of the quarter.
Additional share repurchases were authorised, bringing the total authorisation back to 10m shares.
• RR Donnelley has confirmed plans to make 110 redundancies at its UK print site in Flaxby Moor, Yorkshire. The cuts come amid speculation that a number of contract losses are to blame for the move.
Source: printweek
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