Business Review
The company reports its results in two reportable segments: 1) U.S. Print and Related Services and 2) International. The company reports as corporate its unallocated expenses associated with general and administrative activities.
Summary
Net sales in the quarter were $2.5 billion, down $174.5 million, or 6.5 percent, from the third quarter of 2011. Pro forma for acquisitions, net sales decreased 6.9 percent due to volume declines, a 118 basis point unfavorable impact of changes in foreign exchange rates, price erosion and a 46 basis point unfavorable impact of lower pass-through paper sales. Gross margin of 22.8 percent in the third quarter of 2012 declined from 23.4 percent in the third quarter of 2011 as unfavorable pricing on by-products, volume declines and pricing pressure more than offset lower variable compensation expense, productivity improvements and lower pension expense. SG&A expense as a percentage of net sales in the third quarter of 2012 improved to 10.1 percent from 11.1 percent in the third quarter of 2011, primarily due to productivity improvements resulting from focused cost reduction actions, lower pension expense and lower variable compensation expense. Operating earnings in the third quarter of 2012 were $186.7 million, which were impacted by restructuring and impairment charges and acquisition-related expenses totaling $15.2 million, compared to operating earnings in the third quarter of 2011 of $156.8 million, which included restructuring and impairment charges and acquisition-related expenses totaling $34.9 million.
- People:
- Thomas J. Quinlan III
- Places:
- Chicago