The New York Times Company Reports 2007 Second-Quarter Results
The New York Times Company announced today second-quarter earnings per share (EPS) from continuing operations of $.15, compared with $.37 in the second quarter last year. Excluding the special items noted below, EPS was $.34 from continuing operations compared with $.37 in the second quarter last year. Operating profit decreased to $43.3 million from $86.2 million in the second quarter of 2006, while operating profit excluding depreciation and amortization and special items declined 2.7 percent to $118.5 million from $121.8 million in the second quarter of 2006.
Included in the second-quarter results from continuing operations are the following special items:
A pre-tax net loss of $68.2 million from the sale of assets, principally the Edison, N.J., printing facility ($41.3 million after tax or $.29 per share),
A pre-tax gain of $39.6 million from the sale of WQEW-AM ($21.2 million after tax or $.15 per share), and
Accelerated depreciation expense of $13.1 million ($7.4 million after tax, or $.05 per share) for assets at the Company’s Edison, N.J., printing plant, which is in the process of being closed.
The net effect of these special items reduced net income from continuing operations by $27.5 million or $.19 per share. In addition, there was a pre-tax gain of $191.2 million from the sale of the Broadcast Media Group ($94.3 million after tax or $.66 per share), which is classified as discontinued operations.
“While our second-quarter results reflected the weakness in the print advertising market stemming from both secular and cyclical forces in our businesses, we continued to move aggressively on new product development, cost reduction and the rebalancing of our portfolio,” said Janet L. Robinson, president and CEO. “Our online properties again grew strongly, up 23 percent in the quarter and accounted for more than 10 percent of the Company’s revenues.
“For the third consecutive quarter, we achieved year-over-year cost reductions, excluding the effect of an extra week in the fourth quarter of last year. This quarter our operating costs fell about 2 percent and, excluding depreciation and amortization, dropped nearly 4 percent as we continued our drive to reduce costs. We recently completed a comprehensive review of our cost structure. As a result, we expect to reduce our year-end 2007 cost base by about $230 million in 2008 and 2009, excluding the effects of inflation and one-time costs. About $130 million of these savings are expected in 2008. We believe that reducing our cost structure in creative and disciplined ways is an important part of the Company’s ongoing efforts to manage the business to match the changing dynamics of our markets.
“During the quarter, we continued to rebalance our portfolio of businesses with the sale of our television properties and a radio station. In addition, we strengthened our portfolio of digital assets with the acquisition of ConsumerSearch.com, a leading online publisher that analyzes product reviews.
“As we move forward, we will continue to focus on our strategy of introducing new products both in print and online, building our innovation capability, stringently managing costs and rebalancing our portfolio of businesses.”
Related Articles