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Cincinnati Post

NEW YORK -- Newspaper publishers delivered more discouraging news Thursday as Tribune Co. and the New York Times Co. both reported sluggish advertising revenue in the third quarter.

Tribune said it was still on track to decide on a restructuring strategy by the end of the year. The Times, meanwhile, played down speculation that it was considering a leveraged buyout.

The Times, which also owns the Boston Globe and other newspapers, reported a 4.2 percent slump in advertising, while Tribune's newspaper advertising fell 2 percent. The Times was especially hard- hit by continued weakness in its New England properties, anchored by the Globe, where advertising slumped 10 percent.

The New England market has been hurt by the consolidation of big retail advertisers such as Filene's, while classified advertising fell on weakness in autos, help wanted and real estate.

Tribune, which owns the Los Angeles Times, Newsday and the Chicago Tribune, among other papers, reported a big jump in net earnings to $162.2 million, or 65 cents per share, compared with $21.9 million, or 7 cents per share, due to one-time gains as it unwound two complex partnerships with its largest shareholder.

Excluding the gain, Tribune earned 43 cents per share, short of the 45 cents that analysts had been expecting, according to Thomson Financial. Revenues fell almost 3 percent to $1.35 billion.

Tribune, under pressure from its largest shareholder, on Wednesday Tribune said the committee had retained Morgan Stanley as its financial adviser as it considers alternatives, which could include a possible sale or breakup of the company.

The Times' results beat recently lowered expectations but still reflected considerable weakness in print advertising. The company reported earnings of $14 million, or 10 cents a share, down from $23.1 million, or 16 cents a share. Overall revenue fell 2.4 percent to $739.6 million.

The results included charges of 3 cents per share for job cuts and another 3 cents per share related to the sale of the company's 50 percent stake in Discovery Times Channel. The year-ago period also included a charge of 5 cents per share related to job cuts.

Analysts had been expecting 12 cents per share, excluding the charges, but the Times' shares still fell 51 cents or 2.2 percent to $22.74 on the New York Stock Exchange. Tribune's shares gained 1 cent to close at $32.91.

Another publisher, Belo Corp., reported a 13 percent decline in profits on one-time charges, including 3 cents per share in severance at the Dallas Morning News.

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