N.Y. Times Results Fall on Higher Expenses

By: The New York Times Co. reported a 20 percent drop in net second-quarter earnings Thursday.

The company earned $60.8 million, or 42 cents per share, for the April-June period, down from $75.7 million, or 50 cents per share, in the same period a year ago. Besides its flagship paper, it also publishes The Boston Globe, the International Herald Tribune and 16 other newspapers.

It blamed higher expenses, including a charge for staff cuts and higher stock compensation costs.

Revenues rose 2.6 percent to $845.1 million from $823.9 million. Excluding the effect of adding About.com, revenues were up 1.1 percent.

The Times recorded a charge of 4 cents per share in the quarter related to job cuts it announced in May, and expects to record another charge of 3 cents per share related to the cuts in the third quarter.

The company also had higher costs for stock compensation of 3 cents per share, versus 1 cent per share in the year-ago period, as it adopted new accounting standards for expensing stock compensation.

The staff-reduction charge and higher cost for stock compensation contributed to a 6.7 percent increase in overall costs in the quarter, the company said.

Excluding the costs for the staff cuts, the stock compensation and About.com, other costs in the quarter increased 3.2 percent, due to higher printing and promotional costs and higher newsprint costs, the company said.