Time Inc.’s Profit Declines 3.9% in Third Quarter

Time Inc. reported a 3.9% profit decline for the third quarter from a year ago due to a downturn in advertising volume, the costs of launching new magazines and lower interest income.

Time’s after-tax earnings totaled $44.2 million in the period ended Sept. 30. In the same 1984 quarter, Time’s net income amounted to $46 million. Revenue in the latest three-month period rose 12.8% to $847 million from $751 million in the 1984 third quarter.

Advertising volume in the latest quarter did not match the level of last year, when the Summer Olympics in Los Angeles helped boost such revenue to a record amount, Time said.

Also affecting the latest results were the costs of launching Southern Living Classics and beginning the test of Picture Week, both of which took place in September, it said.

In a move that the company said was not related to its third-quarter performance, Time confirmed that it intends to trim its 1986 expenses by $75 million.

Time, hoping to cope better with changes in its businesses and problems that may develop if the economy weakens, plans to pare by 2.5% its 1986 operating costs, which have been estimated at $3 billion.

The belt tightening, involving staff reductions and other steps, was outlined in a letter to company personnel, Time spokesman Michael E. Luftman confirmed Tuesday.