By: SETH SUTEL, AP Business Writer (AP) The New York Times Co. said Wednesday its earnings fell by more than half in the third quarter, even as sales rose, because of higher costs and a charge related to staff reductions.
The company, which publishes The Boston Globe and the International Herald Tribune in addition to its flagship newspaper, had net income of $23.1 million, or 16 cents a share, in the July-September period, down from $48.3 million, or 33 cents a share, in the comparable period a year ago.
The results for the latest quarter include a pretax charge of $12.4 million, equivalent to 5 cents per share after tax, for costs related to staff reductions announced earlier this year.
The company also said it would take an additional total charge of $35 million to $45 million over the next three quarters, beginning in the fourth quarter, for another staff reduction program it announced last month that will eliminate 500 jobs, or 4 percent of its payroll.
Revenue rose 2.2% to $791.1 million in the quarter. Excluding the addition of About.com, an Internet company the Times acquired in March, revenue rose 0.4%.
The results were higher than the company's previously reduced estimates for third-quarter earnings. Last month the Times said it expected earnings of 11 cents to 14 cents per share because of a tough advertising environment and higher-than-anticipated costs related to its previous round of job cuts.
Janet Robinson, chief executive of the Times, said in a statement it saw improved advertising growth in September, but the market in the third quarter had been "challenging."
Overall, the Times reported a 4.4% gain in advertising sales in September from the same month a year ago, or 1.6% excluding About.com.
Total costs rose 8.2% in the quarter. Excluding costs related to staff reductions, its acquisition of About.com, and stock-based compensation, expenses at the Times increased 4.6% on higher distribution and printing expenses, higher costs for compensation and promotion.
In September, the Times said it would slash about 500 jobs over the following six to nine months. About half of the cuts will be at the New York Times media group, including 45 newsroom positions at the Times newspaper.
The Times' shares fell 21 cents to $27.54, below a 52-week low, in morning trading on the New York Stock Exchange. The shares have traded from $27.74 to $41.62 in the past year.
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