Times Mirror Posts 7% Gain in Third-Quarter Net Income

Reflecting improved revenue and the impact of cost-containment efforts, Times Mirror Co. reported that net income in the third quarter rose 7%, and revenue increased 2.7%.

But the company said the weak Southern California economy would continue to negatively affect advertising revenue at The Times and would require further cost-cutting.

For the three-month period ended Sept. 27, Times Mirror reported that net income rose to $43.8 million, or 34 cents a share, from $41 million, or 32 cents a share, in the comparable quarter a year ago. Revenue in the quarter increased to $914.4 million from $889.5 million.

For the first nine months of 1992, net income rose 34% to $127.6 million, and revenue was up 1.8% to $2.69 billion.

“The strong financial performance in the third quarter of all business segments, except newspaper publishing, was sufficient to offset the earnings decline in our newspaper operations,” said Times Mirror Chief Executive Robert F. Erburu. “The state of the economy in Southern California is not expected to improve in the near future, and we remain concerned about its effect on advertising volume at the Los Angeles Times.”

Times Mirror stock closed Wednesday on the New York Stock Exchange at $30.625, up 62.5 cents.

The company’s four network-affiliated TV stations reported the best improvement, with operating profit up 69% on 20% higher revenue in the quarter because of improved ratings. Operating profit in the cable TV division rose 38%, while revenue was up 10%. Book, magazine and other publishing operating profits were up 15% on 7% higher revenue.

Newspaper revenue, however, dropped 2%, and operating profit fell 25%, largely because of declines in classified and display advertising volume at The Times.

Times Mirror publishes the Los Angeles Times, Newsday and New York Newsday, the Baltimore Sun newspapers, the Hartford Courant, the Morning Call, the (Stamford) Advocate and Greenwich Time.