Net sales grew 2.9% to $1.71 billion, and organic sales grew 1.3% for the first quarter 2018. This represents the second consecutive quarter of organic growth. Income from operations was $32.2 million, down from $43.3 million in 1Q 2017.
“I am pleased to report that we delivered our second consecutive quarter of organic sales growth as we extend our differentiated capabilities to win new business and fuel growth with our existing clients. And despite an unexpected client bankruptcy-related charge and unfavorable foreign exchange rates, our underlying results for the first quarter of 2018 were in line with our expectations, and we remain on track to deliver our plan for the year,” said Dan Knotts, RRD’s president and CEO.
Net sales in the quarter were $1.71 billion, up $48.9 million or 2.9% from the first quarter of 2017. On an organic basis, consolidated net sales increased 1.3% driven by higher volumes in both segments as well as higher fuel surcharges in Business Services, partially offset by price pressure in Business Services.
From a products and services perspective, Packaging, Logistics, Direct Mail and Business Process Outsourcing accounted for most of the increase while Commercial Print was down due to ongoing secular pressure and lower specialty card sales.
Gross profit in the first quarter of 2018 was $294.7 million or 17.3% of net sales versus $326.8 million or 19.7% of net sales in the prior year quarter. Income from operations was $32.2 million in the first quarter compared to $43.3 million in the 2017 quarter.
Net loss attributable to common stockholders of $9.6 million in the first quarter compared to a net loss of $50.1 million in the first quarter of 2017. The prior year period included a loss of $51.6 million related to the sale of the company’s equity interest in LSC Communications, Inc.