New York Times quarterly profit rises
EmptyNEW YORK -- New York Times Co. said Wednesday quarterly profit rose, helped by a one-time gain from the sale of its broadcast operations, but revenue fell because of weaker newspaper advertising sales.
Second-quarter net income rose to $118.4 million, or 82 cents a share, compared with $59.6 million, or 41 cents a share, in the quarter a year ago.
Excluding special items, the company reported earnings of 34 cents a share from continuing operations, down from 37 cents in the quarter a year ago.
Analysts were looking for earnings before special items of 31 cents per share, according to Reuters Estimates. It was not immediately clear whether the figures were comparable.
Selling the company's broadcast group added 66 cents to the bottom line. It also reported a loss of 29 cents a share on the sale of assets, including a printing plant in Edison, New Jersey, and 5 cents a share on accelerated depreciation expense. It gained 15 cents on the sale of a radio station and a penny from broadcast income.
Revenue fell 3.7% to $788.9 million, said the company, which owns the New York Times and the Boston Globe.
"While our second-quarter results reflected weakness in the print advertising market...we continued to move aggressively on new product development, cost reduction and the rebalancing of our portfolio," chief executive Janet Robinson said in a statement. The publisher has been reeling from a drop in advertising revenue because of a migration of readers to the Internet as well as a downturn in the U.S. housing market and other wider economic factors.
It also has been resisting calls from some of its shareholders to give all investors equal voting rights. The Sulzberger family controls the Times through its voting stock.
The company is trying to cut costs as it deals with the advertising downturn, and expects to save $230 million in 2008 and 2009. About $130 million would come in 2008, it said.