|
Tribune, Scripps warn
|
 |
June 14, 2001: 5:55 p.m. ET
Tribune expects earnings to be lower; E.W. Scripps blames weak ad sales
|
NEW YORK (CNNfn) - Stung by a slowdown in advertising, a pair of newspaper publishers warned Tuesday that their second-quarter profits will come in below forecasts.
Chicago-based Tribune Co. (TRB: Research, Estimates), the publisher of newspapers such as the Chicago Tribune and Los Angeles Times, lowered its earnings estimate for the second quarter to 22 cents a share, excluding one-time items and accounting charges.
The Wall Street consensus estimate for its second-quarter earnings was 28 cents a share, according to earnings tracker First Call. Tribune said in April when it reported first-quarter earnings that it expected earnings per share of about 30 cents in the second quarter.
Tribune also announced a voluntary retirement program it expects will cut its work force by about 3 percent, with the bulk of reductions being made in the publishing group.
Retail advertising revenue fell 4 percent in May to $104 million due to lower advertising by electronics makers, department stores, grocers and drug stores.
Meanwhile, E.W. Scripps (SSP: Research, Estimates), owner of the Rocky Mountain News in Denver and the Food Network cable TV channel, said it expects second-quarter earnings per share from core operations to be between 53 to 56 cents as compared with 60 cents a year ago.
The Cincinnati, Ohio-based company previously issued guidance calling for quarterly earnings of 55 to 65 cents per share.
The company's consolidated revenues for May were $128 million, down 1.7 percent from the same month a year ago on a pro forma basis. Revenue for Scripps Networks, the company's fastest growing division, was up 14 percent in to $33.9 million.
In addition, media firm True North Communications also slashed its second-quarter profit outlooks because of weakness in the global advertising market.
- from staff and wire reports 
|
|
|
|
|
 |
|
