UPDATE 2-RR Donnelley cuts 2008 profit outlook, shares fall
(Adds details, analyst comments, share movement)
By Bijoy Anandoth Koyitty
BANGALORE Jan 9 (Reuters) - Printing services provider R.R. Donnelley & Sons Co (RRD.N: Quotazione) cut its full-year earnings outlook, hurt by decreased volumes, sending its shares down 11 percent.
R.R. Donnelley, which gets about 60 percent of its revenue from print and related services such as magazines, catalogues, directories and inserts, has been feeling the heat as a slump in advertising takes its toll on U.S. publishers.
"I had a feeling the earnings would be under pressure, but it looks like it is lot worse than I thought," The Benchmark Co analyst Edward Atorino said by phone.
The outlook cut can also be due to some negative currency effects in the fourth quarter, reversing the positive effects the company earlier had, Atorino said.
R.R. Donnelley said it expects 2008 earnings from continuing operations of $2.80 to $2.90 a share, down from its previous forecast of $3.08 to $3.11. It sees full-year revenue of about $11.5 billion.
Analysts on average were expecting a profit of $3.08 per share, excluding items, on revenue of $11.84 billion, according to Reuters Estimates.
For the fourth quarter of 2008, the company forecast a profit from continuing operations of 51 cents to 61 cents a share, excluding items, versus analysts' estimate of 79 cents. It sees revenue of about $2.7 billion for the period. Continua...