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Publishers top estimates
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April 20, 2000: 3:15 p.m. ET
Profit at both Times Mirror and Knight Ridder beat analysts' expectations
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NEW YORK (CNNfn) - Two of the nation's biggest newspaper publishers, Times Mirror Co. and Knight Ridder Inc., reported better-than-expected first-quarter earnings Thursday, propelled by strong growth in advertising revenue.
Excluding special items, Knight Ridder (KRI: Research, Estimates), the second-largest newspaper publisher, posted a profit of $68.9 million, or 74 cents per diluted share, up 13.8 percent from $62.9 million, or 65 cents per share, a year ago. Total operating revenue for the quarter rose 4.8 percent to $807 million from $770 million.
 The results narrowly beat Wall Street analysts' prediction of a profit of 73 cents a share, according to earnings tracker First Call/Thomson.
San Jose, Calif.-based Knight Ridder, publisher of 31 daily newspapers and second to Gannett (GCI: Research, Estimates) among the nation's publishers, attributed the quarterly gains to strength in West Coast markets, sustained robust national advertising, and lower newsprint costs.
Ross Jones, Knight Ridder's chief financial officer, said the company expects its outlook to remain rosy for the remainder of this year.
"Looking ahead, we are optimistic that we will report a fifth consecutive year of double-digit earnings per share growth," Jones said. "Costs are under control, and newsprint prices look like they will increase no more than 5 percent or 6 percent, as anticipated."
Shares of Knight Ridder fell 3/16 to 47-7/8 in moderate trade on Thursday afternoon, after touching a session high of 49-1/16.
Times Mirror beats estimates
Times Mirror, which soon will merge with media conglomerate Tribune Co. (TRB: Research, Estimates), reported first-quarter income from continuing operations of $57.9 million, or 90 cents a diluted share, versus $50 million, or 60 cents per share, a year ago.. Analysts polled by First Call/Thomson expected a profit of 75 cents per share in the first quarter ending March 31.
Los Angeles-based Times Mirror (TMC: Research, Estimates), whose publishing realm includes the Los Angeles Times newspaper and Popular Science magazine, said its revenue rose 6.6 percent to $745.3 million compared with $699.2 million in last year's first quarter. 
First-quarter revenue from newspaper publishing rose 6.2 percent to $609.2 million from $573.5 million in the prior-year period. Advertising revenue rose 8.5 percent, led by double-digit gains in both retail and national advertising revenues at the Los Angeles Times.
In March, Tribune and Times Mirror announced that they would merge, in a cash and stock deal valued at about $8 billion. Times Mirror said it expects the pact the close in the second or third quarter of this year.
"Times Mirror had an outstanding first quarter with strong performance at each of our companies," said Mark Willes, chairman, president, and chief executive of Times Mirror, said. "We're pleased that we'll be able to turn over to Tribune a company that is delivering very strong performance."
Shares of Times Mirror fell 1/16 to 40 on Thursday afternoon. 
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