R.R. Donnelley & Sons Co. said Thursday that second-quarter sales rose 78 percent, to $2.03 billion, because of the February acquisition of Moore Wallace Inc., but restructuring and other charges resulted in a net loss of $12.5 million, or 6 cents a share.
Charges totaled $133.6 million, including a non-cash impairment charge of $89.1 million related to the pending sale, announced Wednesday, of Donnelley’s package logistics business.
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The sale to a private investment group, Heritage Partners, for between $50 million and $100 million is expected to close by the end of the third quarter, Donnelley executives said during a conference call with analysts.
Excluding the charges, the printing company’s net earnings totaled $68.6 million, or 31 cents a diluted share. In the year-ago period, the Chicago-based printer earned $19.3 million, or 17 cents a diluted share. Those results included $5.3 million of restructuring and impairment charges.
Despite pricing pressures and rising paper costs, Donnelley’s gross margins rose to 25.3 percent from 22.3 percent in the second quarter of 2003, thanks to cost-cutting and restructuring, executives said.
“We are on track and ahead of schedule on integration and cost savings,” Chief Executive Mark Angelson told analysts.
Angelson said he is confident the company will achieve the merger’s promised $100 million in cost savings in the first year, and he is optimistic about cutting $300 million over three years.
Donnelley stock rose 34 cents, to $30.94, on the New York Stock Exchange.
In other earnings news:
– Aon Corp. said second-quarter profit rose 18 percent amid a slight increase in revenue. The Chicago-based insurance brokerage reported net income of $173 million, or 52 cents a share, matching estimates, according to Thomson First Call. A year ago, it earned $146 million, or 46 cents a share.
Revenue rose 5 percent, to $2.54 billion, led by a 16 percent jump in insurance-underwriting revenue.
Aon stock lost $1.14, to $25.50, in NYSE trading.
– Playboy Enterprises Inc. said its second-quarter loss widened because of costs to cut debt. The Chicago-based company had a net loss of $8.3 million, or 26 cents a share, compared with a loss of $905,000, or 4 cents a share, a year earlier. Sales increased nearly 4 percent, to $78.7 million.
The report came out after the close of trading.
– ServiceMaster Co. said second-quarter earnings were $70.4 million, or 24 cents a share, meeting estimates. A year ago, the Downers Grove-based company earned $65.5 million, or 22 cents a share. Revenue edged up to $1.09 billion from $1.03 billion.
Shares of ServiceMaster gained 23 cents, to $11.58, in NYSE trading.
– Trizec Properties Inc. posted a second-quarter loss of $136.9 million, or 91 cents a share, compared with net income of $11.3 million, or 7 cents a share, in the year-ago period. Revenue at the Chicago-based real estate investment trust fell nearly 2 percent, to $186.1 million.
The report came out after the close of trading.