|
Book unit hurts News Corp.
|
 |
August 19, 1997: 8:29 p.m. ET
Company cites $448 million charge for restructuring at HarperCollins
|
NEW YORK (CNNfn) - News Corp. said Wednesday its net profit for the year suffered because of an abnormal loss of $448 million due to restructuring of its HarperCollins publishing division.
Led by Australian media mogul Rupert Murdoch, News Corp. posted an after-tax profit of $1.01 billion for the year, excluding the HarperCollins charge. That marks a 6 percent increase from the $953 million earned in fiscal year 1996.
The company recently took major steps to shore up HarperCollins, citing "difficult trading conditions being experienced throughout the industry." Sharply lower profits from the publishing unit also affected operating results.
The fourth-quarter charge dealt with the division's restructuring, focusing on a "prudent growth strategy in a competitive market," according to a statement.
Looking at the fine print, News Corp. posted revenues of $11.22 billion in 1997, up from $9.88 billion the year before. The United States checked in as the No. 1 sector, with $7.8 billion in revenues.
By industry segment, filmed entertainment led the pack with $3.29 billion in revenues. Book publishing trailed News Corp.'s other divisions with revenues of $643 million.
In addition, the media conglomerate launched a buy-back of $1.75 billion of its preferred limited voting ordinary shares. The move requires regulatory clearances, the company said. 
|
|
|
|
|
|
News Corp.
|
Note: Pages will open in a new browser window
External sites are not endorsed by CNNmoney
|
|
|
|
 |
|
