By: Lisa Singhania, AP Business Writer
Updated at 12:35 p.m. EST(AP) Dow Jones & Co., the publisher of
The Wall Street Journal and other financial publications, reported an 85.3% decline in third-quarter earnings Thursday because of what it called an "extraordinarily difficult global advertising environment."
The company also said fourth-quarter earnings would be down sharply from a year earlier and would be below analysts' expectations.
Dow Jones earned $2.5 million, or 3 cents per share, in the three months ended Sept. 30 compared with $16.7 million, or 19 cents per share, in the same quarter a year ago.
Excluding one-time items, Dow Jones earned 6 cents a share. Analysts surveyed by Thomson First Call expected earnings of 8 cents a share. The company had warned last month that it expected its earnings per share would be in the mid-to-upper single digits excluding special items.
In afternoon trading, the stock fell $2.29, or 6.9%, to $30.70.
Revenue for the quarter fell to $352.4 million from $397.6 million a year earlier.
Advertising revenues showed significant losses. Third-quarter ad revenues were $185.3 million, compared with $220.45 million a year ago. Circulation revenues also fell to nearly $98 million from $104.8 million a year ago.
The weaknesses were most pronounced in
The Wall Street Journal's results. Third-quarter advertising volume dropped 12% from the previous year, while the
Asian Wall Street Journal showed a 20.5% decline. The company's Ottaway Newspapers division suffered a smaller decline of 1.7% from a year ago.
For the first nine months of the year, Dow Jones earned $186.27 million, or $2.21 per share, compared with $66.09 million, or 76 cents per share, during the same period in 2001.
Nine-month revenue was $1.16 billion versus $1.34 billion a year ago.
The company said earnings before special items would be between 15 cents and 20 cents a share in the fourth quarter, down from 34 cents in the last three months of 2001. Analysts surveyed by Thomson First Call were looking for earnings of 33 cents a share. It expects advertising volume to be down in the mid-to-high teens percentage range.
On the Net:
http://www.dowjones.com
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