By: Lucia Moses Both Report Lower 2nd Quarter Earnings
Two newspaper companies reported their second-quarter earnings
would be reduced to reflect decreases in the value of their
Internet investments, while saying the outlook for an economic
recovery remained unclear.
The McClatchy Co. said at an investors' conference Wednesday that
it expected to report earnings per share of 24 cents to 27 cents,
including a charge of 11 cents. Company revenue for 2001 was down
2.2% through June 3 following a 1.1% decline in the first
quarter.
McClatchy, publisher of the Minneapolis Star Tribune, said
that excluding the charge, earnings would have exceeded earlier
forecasts because of cost containments and better than expected
revenue numbers for April and May. The company said it has cut
231 full-time equivalent positions since the start of the year,
or about 2%.
Also Wednesday, St. Louis Post-Dispatch parent Pulitzer
Inc. downgraded its second-quarter EPS estimate to 26 cents to 29
cents from the 28 cents to 38 cents previously estimated. Not
included in the estimate is a charge of 6 cents to reflect a
decline in value of the company's investment in KOZ.com.
Pulitzer reported a 1.7% decrease in revenue in April and May.
"We do not have a clear vision that we will see a turnaround in
advertising any time soon," said Ronald Ridgway, senior vice
president/financial.
Lucia Moses (lmoses@editorandpublisher.com) is an associate editor covering business for E&P.
Copyright 2001, Editor & Publisher.
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