P.M. BRIEFING : Tribune Co. Posts Profit Drop
The Tribune Co. today reported a 9% drop in its first-quarter earnings and blamed operating losses at the New York Daily News and weakness in its newsprint business for the slump in profitability.
The company had net income of $33.5 million, or 43 cents per share, in the three months ended April 1, down from $36.8 million, or 49 cents per share, a year earlier. Revenue rose 6% to $584 million from $553 million in 1989’s first quarter.
The company’s other holdings include the Chicago Tribune and Chicago Cubs baseball team, television and radio stations in several major markets as well as other newspaper holdings.
Operating profit for Tribune Co.’s newspaper publishing group declined 10% to $55.7 million from $61.6 million. The company said the decrease was due to larger operating losses at the Daily News resulting from weaker market conditions and costs related to contract negotiations with the newspaper’s 10 unions.
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