RR Donnelley pays $122M to end losing contract

Date:2009-9-29 13:17:00

R.R. Donnelley & Sons Co., a Chicago printing service company, said in a regulatory filing Friday that is has agreed to end its contractual relationship with a significant customer.

It said the termination agreement allowing the Printing company to exit from certain unprofitable operations was finalized Thursday.

R.R. Donnelley did not disclose the name of the customer or provide any details about the contract in the filing with the Securities and Exchange Commission.

It said the estimated pretax charges associated with the termination agreement total $123 million to $130 million.

The charges include cash charges relating to a termination payment of roughly $122 million to the customer and severance costs and other charges of approximately $1 million to $8 million.book Printing