R.R. Donnelley Profits Down 68 Percent By Kara S. Carpenter, FORM Assistant Editor CHICAGO—Direct-selling manufacturer R.R. Donnelley & Sons Co. reported Wednesday that the company?s first-quarter earnings dropped 68 percent due to the slowing economy and a decrease in demand for advertising, magazines, catalogs and trade books. The company reported earnings of $14.5 million, down from $46.7 million a year ago. The results included restructuring charges of $22 million to cover the cost of closing printing plants in Florida, Texas and England. Revenues for the quarter were $1.3 billion, down 3 percent from the year-earlier period. On March 26, R.R. Donnelley announced plans to invest up to $300 million over the next two years to improve the efficiency of its long-run printing and binding operations, including replacing several older presses with 10 new presses and related binding equipment. The restructuring is part of the company's effort to create the most cost-effective, integrated and flexible ?printing platform of the future,? according to a press release. ?I can report with confidence that, even in the current economic environment, we are satisfied with the progress we?ve made in repositioning R.R. Donnelley,? said William L. Davis, the company?s chairman, president and CEO. ?We have the resources and strong cash flow to manage and execute through this environment and strengthen our competitive position, while continuing to develop and deliver the broadest range of integrated communications solutions for our customers.? The company said it still expected 2001 earnings per share to range between $1.95 and $2.10 before one-time items and restructuring charges, assuming market demand in the second half will return to 2000 levels.