Canadian Companies Report Earnings p.17

By: Editorial Staff THOMSON CORP.'S PROFITS inched up in the second quarter, while another Canadian media giant, Southam Inc., reported slightly lower earnings.
Thomson earned $89 million (U.S.), or 15? per share, a 6% net improvement. Revenues slipped about 4% to $1.76 billion.
The newspaper division took in $305 million, up 5%. Thomson cited the "noteworthy contributions" of U.S. properties in the South and Midwest as well as those of the Toronto Globe and Mail.
Ad revenues grew in all categories except national. Linage was also higher, primarily due to classified growth.
U.S. circulation increased slightly. Canadian circulation dipped, despite growth in Saturday editions, including the Globe and Mail's.
Thomson reported half-year operating earnings of $210 million, up 5%. Revenues slipped 3% to $3.09 billion.
Southam recorded profits of $14.5 million (Canadian), or 19? per share, a 5% decline. Revenues moved up 7% to $284.7 million.
Newspaper earnings dipped 4% lower to $25.2 million, largely due to newsprint prices, as revenues rose 5% to $234.1 million.
ROP advertising revenue at the company's dailies grew 3%. The national category performed best, with revenue gaining 10%. Classified moved up 2%, while retail dipped slightly. Circulation revenues advanced 7%.
About one-half of the ad increases and one-third of the circulation improvement were attributed to St. Catharines Standard Ltd., a publisher of dailies, weeklies and shoppers acquired in April.
For the half-year, Southam's net income fell 9% to $16.9 million, or 22? per share, on 6% healthier revenues of $502.1 million.
Montreal-based newsprint maker Avenor Inc. suffered a quarterly net loss of $14.4 million (Canadian), or 23? per share, compared with a $71.5 million net profit in the same term last year. Revenues plummeted 27% to $481.6 million.
The results were attributed to softening pulp prices, lower newsprint shipments and "market-related downtime."
For the six months, Avenor reaped earnings of $24.8 million, or 37? per share, an 81% decline. Revenues dipped slightly to $926.7 million.