By: Newspaper publisher Lee Enterprises Inc. said Tuesday that the outlook for earnings this year is "weak" and increased its projected cost cuts to more than $100 million.
At its annual stockholders meeting, Lee Enterprises (nyse: LEE - news - people ) said the cost reduction will put this year's cash costs 12 to 13 percent below 2008's.
The publisher of the St. Louis Post-Dispatch and other publications had previously expected to slash operating costs by 10 to 11 percent, excluding depreciation, amortization and extraordinary items. That's up from a projected 7 to 8 percent cut disclosed in the company's annual report filed with regulators last December.
But Lee Enterprises said it is prepared to weather the recession, given aggressive sales initiatives, strong presence in local markets and substantial cash flow. It also has financing deals in place.
Shareholders of Davenport, Iowa-based Lee Enterprises gave the board authority to enact a reverse stock split and re-elected three directors.
Lee Enterprises also released a study that showed an expansion of its market reach. Last year, 70 percent of adults in its 12 biggest markets read its papers or visited their Web sites in a week's span, up from 67 percent in 2007.
Newspapers reached 63 percent of adults in 2008, up from 62 percent in the prior year, but close to the study's 0.8 percentage point margin of error. Online sites fared better, attracting 23 percent of adults, up from 18 percent.
Newspaper and online sites expanded its reach in every age group, the company said.
The publisher owns 49 dailies and has a stake in four other newspapers, online sites and over 300 weeklies and specialty publications in 23 states. Its markets include St. Louis, Lincoln, Neb., Madison, Wis., Davenport, Iowa, Billings, Mont., Bloomington, Ill. and Tucson.
Comments
No comments on this item Please log in to comment by clicking here