Exhibit 99.1 R.R. DONNELLEY & SONS COMPANY AND SUBSIDIARIES PRO FORMA INCOME STATEMENT (Thousands of dollars, except share data) Nine months ended September 30, 1996 ------------------------------------------- Discontinued Consolidated Operations Pro Forma ------------------------------------------- Net sales $4,697,316 $(1,068,839) $3,628,477 Cost of sales 3,883,249 (953,996) 2,929,253 ---------- ----------- ---------- Gross profit 814,067 (114,843) 699,224 Selling and administrative expenses 520,692 (131,593) 389,099 Restructuring and impairment charges 560,632 (118,923) 441,709 ---------- ----------- ---------- Loss from operations (267,257) 135,673 (131,584) Other income (expense): Interest expense (71,614) - (71,614) Gain on stock offerings of subsidiaries 44,158 - 44,158 Other income (expense), net 30,757 (18,180) 12,577 ---------- ----------- ---------- Loss before income taxes (263,956) 117,493 (146,463) Provision for income taxes (9,182) 39,779 30,597 ---------- ----------- ---------- Loss from continuing operations (254,774) 77,714 (177,060) Loss from discontinued operations, net of income taxes - (77,714) (77,714) ---------- ----------- ---------- Net loss $ (254,774) $ - $ (254,774) ========== =========== ========== Per basic common share: Continuing operations $ (1.66) $ 0.51 $ (1.15) Discontinued operations - (0.51) (0.51) ---------- ----------- ---------- Net loss $ (1.66) $ - $ (1.66) ========== =========== ==========